1/1 Many people ask how Layer2 can make money?
The gas fee everyone pays to L2 = income
GAS fee paid by L2 to Ethereum = expenditure
L2 is essentially a business where handling fees are “too high to pluck”.
Arb and OP rely on this wholesale and retail price difference to take away about 1 million US dollars per month; while Base and ZK, which are more popular, can take away 2 to 3 million US dollars per month.
https://dune.com/queries/2863300/4789188
2/2 Why is Ethereum’s Cancun upgrade so important to L2? The most important EIP-4844 upgrade of the Cancun upgrade allows L2 to not transmit data to the Ethereum execution layer itself, but to the Blob area of Ethereum (to use a metaphor, it is like a new development area in land planning) L2 Expenses are significantly reduced.
Anyone who does business knows that when expenses go down, profits go up. If the Cancun upgrade is completed, assuming L2 does not reduce fees, theoretically the gross profit can easily double.
3/3 Of course, L2 will also theoretically reduce fees. Now L2 is completely homogeneous competition. For example, OP launched Stack, and Arb and ZK hurriedly followed up. After all, friends have done it, but you have not, which is very disadvantageous in the competition.
4/4 Back to the topic. What about waiting for the bull market? There are more geese, and the geese are stronger, and the number of hairs that can be plucked will be greater. After all, the unit of hair plucking is ETH, and it is now priced in USD just for the convenience of everyone’s understanding. Even if the bull market L2 takes a monthly commission of 10 million US dollars, I completely believe it.
5/5 This also raises another question: Why doesn’t L2 use its own tokens for gas fees?
Most L2s do not use their own tokens as GAS, and the reason is very simple.
First of all, ETH is more popular among users, and using ETH for GAS is more orthodox.
More importantly, it’s also real money – you can earn ether. You have to know that the most important thing for the project team is its own tokens. If GAS earns a bunch of its own tokens, it always feels like it is not as cost-effective as earning ETH directly.
6/6 So the trend of L2 will be clear later:
1. Increase income (activity). For example, I keep using airdrops to catch you, or secretly encourage local dogs, free mint NFT, etc.
2. Increase revenue (unit price per customer). Use your brain in terms of MEV.
3. Reduce expenses (yourself). Embrace the Cancun upgrade; go with the cheaper DA tier.
4. Reduce expenses (cooperation). "Carpool" with other L2, share L2 gateway, shared sequencer, etc. to reduce GAS.
Finally, the original tweet is attached → https://twitter.com/0x_Todd/status/1693517093201969360?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1693517093201969360%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3 A%2F%2Fmirror .xyz%2F0x17f3F81860345567482E1D232FB5B6f8bD77f3Bd%2FD_g2SUvlK2GnJstTpAspOman7kA-knHmAkWWtdEHQR4
Author of this article:
0xTodd | Nothing Research Partner
