Tech tip #1: make sure to get youself a cold hardware wallet (trezor, ledger, lattice1, etc) Tech tip #2: after connecting your hardware wallet on Metamask make sure to rename your default unprotected one to "DO NOT USE"

This. This so much.

This so much. A lot of dev work and investment from the EF is being allocated to security councils and interoperability for L2s that may or may not turn out to be ETH aligned. Unsecure L2s are getting paid well enough. I'd argue fuck them.

Native rollups are Ethereum's secret weapon that almost nobody understands. They'll unlock $100B in trapped ETH and revolutionize L2 security. Here's exactly how 🧵

Something interesting is happening in Ethereum land where L2s are being attacked (and attacking each other) for not being sufficiently "ETH Aligned" A bit of a shitshow, but I think there's a deeper story here about the future of ETH and L2s Obviously, there's very clear and widely recognized concerns about ETH's value accrual and demand, notably after network revenue fell off a cliff after blobs were introduced in early 2024 The root problem is that Ethereum forfeited the most valuable part of the tech stack (MEV and congestion gas pricing) to L2s networks, while keeping the least value part of the stack (settlement and data availability) This has resulted in a imbalanced economic situation where L2s keep the vast majority of the revenue they generate, while paying only small single digit percentages (sometimes as low as 1%) of their revenue to Ethereum for settlement and DA This is why the social layer for Ethereum has gotten so loud about trying to force the "ETH is money" and "L2s expand access to ETH" narratives, because revenue doesn't matter as much when you're trying to go after monetary premium story like BTC But this economic situation has also created friction within the Ethereum community when it comes to L2s -- In @VitalikButerin's recent blog on scaling, he made the following suggestion: "Encourage L2s supporting ETH with some percentage of fees. This could be done through burning a portion of fees, permanently staking them and donating proceeds to Ethereum ecosystem public goods, or a number of other formulas." Interesting thing here is that there is nothing technical proposed that would enforce this alignment, but rather it is a kind of social layer pressure on L2s, which Ethereum community has taken and run with Rather than adjust the actual economics, people can just throw the problem back over the fence to the L2s to solve And the brilliant this is, if they don't, then they're not properly "ETH Aligned" and must be called out, which means I'm helping saving ETH Now we have the major L2 ecosystems all bickering with each other on the timeline about who is the "most ETH aligned", who holds the most ETH onchain, who is alleging dumping too of much of their ETH, etc But ultimately, this whole concept is a red herring, it's not the responsibility of L2s to fix ETH's value accrual problem It is not the fault of the L2 that it only has to pay a small fraction of its net revenue to Ethereum L1 because Ethereum decided to forfeit the most value part of the stack to L2s It is not the responsibility of L2 to burn their own ETH revenue or stake / baghold a bunch of ETH to fix the imbalance L2 rollups are a business and they're going to optimize their business for revenue and growth, and that's okay The question of ETH's economic issues can't be solved through social layer pressure alone, you can't just ask L2s to share the revenue nicely, when it is not in their own economic interests to do so -- This economic imbalance will only be made more clear once the question of "gas abstraction" really takes hold and L2s start to accept other tokens (like stablecoins) beyond ETH as an accepted native form of payment for tx gas fees Any L2 saying or trying to do this today would be hearsay, "That's Not ETH Aligned!!1!" as it would appear to diminish the role of ETH as a gas token across L2s (still seen as a core pillar of ETH demand) But it only takes one major L2 to accept stablecoins as a native form of payment for tx gas fees, and the others will have to step in line in order to not get outcompeted as this is a 10x improvement in UX for normie users And I'm not talking about a work-around like Paymasters that have basically no adoption, but the L2 network itself accepting USDC as gas fee payment and converting single digit percentages of that to pay for L1 settlement DA in ETH, while keeping the rest in USDC Alt L1 networks will likely never accept other forms of gas tx payment natively as it would undermine their own gas token's utility and their VC investors would crucify them, but L2s don't need to issue their own gas tokens, they can really accept anything -- The solution (at least partially) seems obvious: 1) we need to actually prioritize scaling the L1 (real gas limit increases accelerate EVM optimizations rapid blobspace expansions) 2) we need accelerate the creation of native rollups and make them a first class citizen in the L1 so the L1 can once again collect MEV congestion gas pricing revenue, even if this might alienate some general purpose L2s 3) we need to start the convo of what the 'nationalization' of third party rollups into becoming native rollups would look like (not forcing it, but open the path to it being possible) Start to go down this path and I believe a lot more people still start to feel much more comfortable the future of ETH's economics Still bullish ETH /ramble end

Ethereum is bleeding value to L2s. Rollups extract fees, MEV, and liquidity while ETH stakers get left behind. If this keeps up, Ethereum becomes a dumb security layer while L2s print money. Does this sound like a decent model for fixing it? 🧵👇

ETHEREUM AND ITS INNER CONTRADICTION Ethereum is having an identity crisis on three axis. But all of them stem from one contradiction. Let's explore. world computer <> onchain economy ETH as a productive asset <> ETH as money feminized wef soyboy <> bronze age mindset — Axis 1: world computer <> onchain economy Ethereum has won as DeFi's Manhattan. It's the capital of the onchain business world. Even with Solana crushing it, DeFi TVL on Ethereum is 10x Solana's. World computer was a great motto when we didn't know precisely what people would use the computer for. Now that we know — it's DeFi — why not market it as such? The entire economy is going onchain, and Ethereum is its capital. Axis 2: ETH as a productive asset <> ETH as money ETH managed to establish itself as a productive deflationary asset after The Merge. Since then, all progress in burning supply has been reversed. Why? Blobs. The idea is that L2s will only be Ethereum aligned if they can settle on Ethereum for very cheap. Thus Ethereum forego 90% of its revenues to effectively subsidize L2 growth. The theory is that Ethereum will export ETH, the asset, as the gas token for all its L2s. Two issues here: 1. This gives a lot of leverage to the L2s, who own distribution. It is unknown whether L2s can just keep asking for subsidized blobs forever. 2. L2s don't have to use ETH as their gas token — they can even use a stablecoin. @jessepollak, for example, thinks that Ethereum should only monetize Base's activity later in the growth curve. Ethereum is a $400bn protocol, I'm not sure it can sustain that valuation with no revenues. I don't think Coinbase could, either — no matter if it has great growth prospects or not. Axis 3: feminized wef soyboy <> bronze age mindset There has been a growing sentiment that Ethereum is the "woke chain" and Solana is the "chad chain." Ethereum indeed displays some signs of wokeness: it seems to feel ashamed and guilty of its own success. When Trump launched a DeFi project on Ethereum, he was heavily criticized by the community. When Trump launched a meme coin on Solana, the Solana community rallied around him. The tides are changing though: more and more ethereans recognize that the wef soyboy times are over. It's wartime. Vitalik doesn't seem to agree. But this last one is, perhaps, where it all stems from: how Ethereum's culture feels about money and success. In 2016, we were a bunch of libertarians and some leftist revolutionaries. 2017 marked Ethereum's first success: capital formation (ICOs). The community's reaction marked Ethereum's first failure: to disregard ICOs as scams and look down upon them. This was a contradiction, as Ethereum funded itself with an ICO. In contrast, think about how Solana embraced memecoins — even if they are less useful than ICOs — at least some ICOs helped fund useful infra and products. @AragonProject, for example, helps govern >$30bn today. Does this constant self-loathing mindset remind you of something? Yes, the woke mind virus. Vitalik says that the EF is neutral — I don't doubt they are trying their best, but it's not the EF that I worry about anymore. The virus has spread across the whole ecosystem. Vitalik is himself more of a leftist revolutionary. I don't think he feels good about capitalism, and he projected that onto the Ethereum community. You cannot win if you feel guilty of winning.

$ETH is on track to close its worst Q1 ever.

I think this is what everyone is feeling and I disagree to an extend but nevertheless the situation is tricky. Currently Ethereum is making almost zero fees from both L1 and L2 transactions *because it chooses to*: If we were a company, we would put a reasonable price tag on transactions, and raise it when there is congestion. But instead, we currently charge very close to zero for transactions and DA when there is no congestion, and the result is there is almost zero fees. Looks bad when you want to evaluate Ether based on that! But here comes the more tricky part: In its current form, it may well be that Ethereum DA does not have much of a moat. It provides very little UX benefits, and only very abstract security benefits that will probably be very closely replicated by alt-DA. Therefore, the moat for DA is low and it's likely Ethereum will never charge significant fees over a long time period. So what should be the plan? My best guess is: - scale L1 to make sure that integration with Ethereum remains attractive - scale DA to make sure that we lower the incentives for alt-DA (this doesn't have to mean lower fees. We can just charge a fee!) - work on shorter block times, single-slot L2 interop etc. to maximize value of Ethereum DA

Non ending suffering for $ETH underperforming in any bull or bear trends. Better days will come. Endure!

Impressive $ETH shitty price action. And it's been like this for 5 years now. Have some of the OG whales migrated all their bags yet?

Deepseek valuation: $150m Market cap wiped out from the U.S stock market: $2 trillion Market cap wiped out from the crypto market: $300 billion one app with $150m valuation has wiped out $2.3 trillion from the stock and crypto market.

FREEDOM!!!!

I voted YES for Danny Ryan as the sole Executive Director of the Ethereum Foundation. votedannyryan.com/

Funny how while you are dumping $ETH for more $TRUMP and $SOL Trump's team is doing the opposite lol

$ETH seems to be on a ATL on sentiment. Price is ok, not great. But I'm betting that's where smart money is flowing right now. ETH is about the long game.

$ETH moving to reclaim past ATH $5K soon

I’m sorry but if you’re paying $200 for a hardware wallet you’re ngmi any solid dev should be able to store private keys in their github with the help of chatgpt “no then someone will steal all your money” bro make 40k then worry about it

enter the ether 🫴