Synthetix founder discusses the Ethereum dilemma: it is necessary to abandon irrelevant long-term projects and focus on application breakthroughs to win the competition.

According to Deep Tide TechFlow news, on April 2, Synthetix founder Kain expressed his views on the Ethereum ecosystem and the challenges it faces on Twitter: Ethereum's L2 expansion has diverted L1 transaction activity and the Blob (EIP-4844) has dropped the cost of data availability, leading to a sharp decline in Mainnet Gas fees and ETH burn rates, putting the economic model in distress. Validators, who were previously insensitive to price, accepted high burn rates with low returns, but after the rise of L2, they captured profits that originally belonged to L1, and the shift towards Alt DA like Celestia threatens the Mainnet's fee-generating capacity.

The core challenge is how ETH can increase the block space fees for L2 to restore profitability. Short-term solutions include coordinating the launch of an official L2 or a rental mechanism, allowing L2 to contribute back to L1; the long-term hope relies on new demands such as tokenizing real assets to stimulate the usage of L1/L2.

The Ethereum community is adept at solving these coordination problems, but needs to move away from inconsequential, long-term projects and urgently focus on application breakthroughs to win the competition.

It is understood that in a previous Ethereum Foundation AMA, topics such as "non-commercial official neutral L2", "L2 blood-sucking", "Blob fees being too low", and "Alt DA" were mentioned. The overall stance of the EF is that we are currently experiencing transitional pains and are more inclined to address issues through technological upgrades and long-term growth strategies, rather than through radical interventions.