NEWSLETTER
Amid tension within some parts of the ethereum ecosystem, Vitalik Buterin has outlined proposals for ethereum's L1 and L2 scaling, focusing on data throughput and test systems to address network demands.
in his last <a target="_blank" href="https://vitalik.eth.limo/general/2025/01/23/l1l2future.html”>blog postoutlined blob capacity expansions and coordinated interoperability initiatives that aim to simplify cross-chain operations. The post highlighted a plan to balance technical solutions with ethereum's social structure, emphasizing that a single chain cannot meet all needs without risking decentralization. Buterin suggested that better L2 security through multiple standardized test systems and bridges could make trust assumptions easier while allowing different networks to experiment with multiple virtual machines.
Buterin emphasized the role of expanding “blob” space as an immediate solution to alleviating layer 2 congestion and suggested that ethereum's base layer must adapt to growing data demands. Currently, the ecosystem processes around three blobs per slot (approximately 210 transactions per second), although upgrades called Pectra and PeerDAS can double or triple this performance.
He emphasized the need for a coordinated roadmap, with engagement mechanisms possibly adjusting blob targets to match technical improvements. Buterin also mentioned more experimental concepts, including partial trust assumptions for less resourced participants, although he recommended caution with designs that risk undermining ethereum's core principles.
He explained that interoperability is a central priority. Rollups operate as single fragments controlled by different entities, resulting in inconsistent standards for message passing and address formats. This has created fragmentation for developers and users, driving the need for cross-chain tools that preserve trustless security rather than relying on multi-signature bridges.
Buterin proposed unified methods for verifying proofs, accelerated deposit and withdrawal times, and chain-specific addresses, including identifiers for each Layer 2 environment. Some developers see this approach as a key step toward user-friendly cross-chain navigation, although Buterin emphasized that maintaining explicit security guarantees remains critical for all implementations.
Protect the value of eth in the ethereum ecosystem
The post also addressed the economic incentives to bolster eth as a triple-point asset, noting that a combination of fee burning on rollups, ongoing “blob” data fees, and on-chain revenue from potential maximum extractable value channels could anchor the ethereum monetary paper. .
He said that the ecosystem system needs
“broadly agree to consolidate eth as the primary asset of the larger economy (L1 + L2) of ethereum, support applications that use eth as primary collateral, etc.”
He argued that rollups should consider depositing some fees back into the ethereum ecosystem, potentially through permanent staking or public asset-specific funding. However, he cautioned that fee structures and demand remain uncertain, and that no mechanism guarantees long-term price support for eth.
Layer 2 adoption and rollups are currently driving ecosystem growth, but Buterin emphasized that a complete transition to rollups requires both technical advances and social coordination. He urged developers to focus on production-ready test systems, shared sequencing solutions and standards that unify cross-functional operations.
He also called on wallet providers to implement new address formats and bridging protocols, explaining that achieving these goals will require direct collaboration between the ethereum Foundation, client teams, and layer 2 projects.
Buterin's post concluded with a reminder that ethereum's social spirit underpins its technical plan, referencing the community's role in maintaining a decentralized project. He called for the direct participation of all stakeholders, including token holders, who can influence roadmap decisions by participating in governance and open discussions.
He noted that network evolution depends on balancing scalability, preserving security, and maintaining a consistent user experience. The final message called for continued collaboration to ensure ethereum remains an open platform capable of supporting widely used decentralized applications.
Leadership and financial movements of the ethereum Foundation
The post comes amid a community split and a shake-up of the ethereum Foundation's leadership as it focuses on bolstering developer collaboration while adhering to core values such as decentralization and privacy. In seeking to remain neutral on political matters, the Foundation continues to emphasize its commitment to advancing the development of the protocol without engaging in ideological or lobbying activities.
However, Buterin's role as co-founder has been endlessly debated on social media, with some calling for him to become more involved in ethereum projects and nft collections, while others push for complete neutrality.
The community is driving the narrative that ethereum's success depends on maintaining a robust L1 ecosystem and a thriving L2 ecosystem that can adapt to diverse use cases. Buterin's blog stressed the importance of flexible but trust-minimizing systems, and called for L2 adoption that reflects early visions of ethereum's fragmented architecture.
He argued that prioritizing blob performance and shared cumulative standards would allow developers to perfect DeFi, social applications, enterprise solutions, and more. He also pointed out the need for unified address formats, faster transaction completion, and cross-chain messaging protocols so that users can navigate different L2s without fragmented workflows.
