Buterin emphasized the importance of second-layer (L2) networks and suggested that these networks should be incentivized to use part of their transaction fees for burning and staking processes. He also pointed out that with an increase in blob capacity, the amount of ETH burned annually could reach as high as 713,000.

Buterin, who recently put an end to the management debates within the Ethereum Foundation with the statement “I am the one who will make the decisions,” shared several new suggestions to enhance Ether’s value.

In his blog post, Buterin thanked Tim Beiko, Justin Drake, and L2 developers, highlighting the significance of these networks. He also pointed out Ethereum‘s broad impact across various domains, from stablecoins to DeFi tools and social media platforms, stressing that “we must improve both technical and social tools.”

The Ethereum founder noted that second-layer networks have made significant progress compared to the initial trial phases in 2019, especially in terms of decentralization and reducing transaction fees. He stated that L2s play a critical role in increasing Ether’s value.

Vitalik Buterin: “L2s and Other Applications Should Be Strengthened”

To boost Ether‘s value, Buterin stressed that L2 networks and other applications need to contribute more to ETH. He proposed the following:

“We need to solidify ETH as the core asset of the Ethereum economy, covering both L1 and L2 networks. We should support projects that use ETH as the main collateral. Second-layer networks can be supported with a portion of transaction fees. This can be done by burning part of the transaction fees or by regularly staking these ETH.”

713,000 ETH Can Be Burned Annually

Buterin also addressed the importance of blobs, which are known for moving transactions off-chain and reducing network load. He explained that if the number of blobs that can be carried in each block is increased to 128, Ethereum could burn up to 713,000 ETH annually:

“If we take the average of the last 30 days of blob transaction fees and assume they remain constant, with the blob count increasing to 128, Ethereum could burn 713,000 ETH annually. However, this alone will not be sufficient as a strategy.”

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