1/9) L2 scaling solutions have become the greatest corrupting force in this industry
With billions of dollars of value being created that are entirely dependent upon not scaling the L1
The lack of incentives for L1 development in ETH & BTC has perverted their original vision
With billions of dollars of value being created that are entirely dependent upon not scaling the L1
The lack of incentives for L1 development in ETH & BTC has perverted their original vision
2/9) Any system with such perverted incentives will trend toward corruption given enough time
Cryptocurrency is no different at this scale; as it can still be controlled at the center
History is repeating itself; a real tragedy for humanity, as it means ETH & BTC will not scale
Cryptocurrency is no different at this scale; as it can still be controlled at the center
History is repeating itself; a real tragedy for humanity, as it means ETH & BTC will not scale
3/9) I do still have hope that ETH can pivot back to its original roadmap of execution sharding
Or pursue enshrined roll-ups instead
However, that would cause billions worth of L2 tokens & VC investments to be wiped out
Whether ETHs leadership would do that remains to be seen
Or pursue enshrined roll-ups instead
However, that would cause billions worth of L2 tokens & VC investments to be wiped out
Whether ETHs leadership would do that remains to be seen
4/9) I am especially skeptical, considering the perverted incentives involved
It is not that I specifically distrust any individuals
Instead, I trust more in crypto-economic game theory
This is not an unsolvable problem from an incentive & governance perspective either:
It is not that I specifically distrust any individuals
Instead, I trust more in crypto-economic game theory
This is not an unsolvable problem from an incentive & governance perspective either:
5/9) As the problem is obvious
ETH L1-focused funding is no more than a few million per year & is running out
While L2 funding is to the tune of tens of billions of dollars, with long-term plans
What is needed is ETH L1-biased funding instead of rent-seeking L2-biased funding
ETH L1-focused funding is no more than a few million per year & is running out
While L2 funding is to the tune of tens of billions of dollars, with long-term plans
What is needed is ETH L1-biased funding instead of rent-seeking L2-biased funding
6/9) This can be achieved by taking a part of the block reward & dedicating it to a treasury
Along with a system of on-chain governance where stakeholders vote for proposals that allocate funds toward development
Thereby providing an indefinite source of L1-biased funding
Along with a system of on-chain governance where stakeholders vote for proposals that allocate funds toward development
Thereby providing an indefinite source of L1-biased funding
7/9) This is not a new idea either
Having been pioneered by cryptocurrencies such as DASH, DCR & XTZ
Running live on these networks successfully for years before the experiments in DAO governance occurred in ETH DeFi
There are mixed results; I think due to a lack of scale
Having been pioneered by cryptocurrencies such as DASH, DCR & XTZ
Running live on these networks successfully for years before the experiments in DAO governance occurred in ETH DeFi
There are mixed results; I think due to a lack of scale
8/9) However, even with all the flaws of on-chain governance; there is no better alternative
In that sense, it is like democracy
Flawed, inefficient, corruptible & susceptible to mob rule
Yet still, it is the best form of government we have; just like on-chain governance
In that sense, it is like democracy
Flawed, inefficient, corruptible & susceptible to mob rule
Yet still, it is the best form of government we have; just like on-chain governance
9/9) I want ETH & BTC to succeed; even if I think BTC is too far gone
ETH can still pivot back to on-chain scaling
A disjointed competition of L2s will lead to more trust trade-offs & or a terrible UX
Especially now that NEAR, EGLD, TON & XTZ have proven that sharding works!
ETH can still pivot back to on-chain scaling
A disjointed competition of L2s will lead to more trust trade-offs & or a terrible UX
Especially now that NEAR, EGLD, TON & XTZ have proven that sharding works!
Loading suggestions...