Joemama on Nostr: L2 efficiency goes up, ETH burn rate decreases, demand for ETH decreases. ETH burn ...
L2 efficiency goes up, ETH burn rate decreases, demand for ETH decreases.
ETH burn rate and demand decreasing leads to inflation rate of ETH increasing, price of ETH decreasing, L2 costs decreasing reducing incentive to make L2s more efficient.
L2s increase ETH consumption again until their costs are prohibitive enough to be worthwhile running efficiently.
And the loop continues…
ETH burn rate and demand decreasing leads to inflation rate of ETH increasing, price of ETH decreasing, L2 costs decreasing reducing incentive to make L2s more efficient.
L2s increase ETH consumption again until their costs are prohibitive enough to be worthwhile running efficiently.
And the loop continues…