🔮 Scaling Solutions: How Dencun
🔄 The Great Reshuffling: How Dencun Changes the Top
$ETH Burners List
Hey everyone! 👋
That's an insightful question! The Dencun upgrade (particularly EIP-4844, or "Proto-Danksharding") has fundamentally changed the underlying economics of Ethereum; so, how will this new scaling solution update likely rearrange the list of top burners in the future?
The short answer is: The Layer 2 Rollups themselves are becoming less direct burners, but their massive user growth could still drive overall burn higher through Layer 1 activity.
📉 The Direct Impact on Layer 2 Burn Contribution
The main innovation of Dencun was introducing "Blobs" (temporary data storage) for Layer 2s instead of forcing them to use expensive "Calldata."
* Cost Reduction: Blobs drastically reduced the cost for L2s (like Arbitrum, Optimism, Base) to post their batch transaction data to the Ethereum mainnet, sometimes by up to 95%.
* Decoupling: Since the cost for L2s to settle is now primarily driven by the Blob Fee Market (which is also burned, but is much cheaper than the main L1 gas market), the L2s are consuming less of the main L1 gas that used to make them top burners.
* The Immediate Effect: Post-Dencun, the total amount of
$ETH burned initially plummeted, and Ethereum's supply briefly became inflationary again, as the high-volume L2 traffic was moved to a much cheaper data space.
📈 The Indirect Impact: User Adoption and the Future Burn
The goal of Dencun wasn't to burn less ETH; it was to scale Ethereum. Lower L2 fees create a positive feedback loop that may eventually offset the initial burn decrease:
* Massive User Growth on L2s: With L2 fees dropping to mere cents (in some cases, less than a penny), these networks become incredibly attractive. This fuels explosive growth in L2 user activity.
* Increased L1 Bridge/Settlement Demand: Even with Blobs, an increase in L2 activity still requires more settlement and more frequent interactions with L1 contracts for bridging, staking, and crucial security updates.
* The New Burn Leaders:
* The Primary L1 Burners: Traditional L1-only transactions, like complex DeFi protocols (e.g., liquid staking platforms like Lido) and large Stablecoin transfers executed directly on the mainnet, will likely dominate the top burner list again, as they still pay the high L1 gas Base Fee.
* The L2 Effect: If L2 adoption booms enough, the sheer volume of users flowing into the ecosystem could eventually drive up demand and fees for the remaining L1 execution space (the main chain), pushing the total burn rate back up.
Conclusion: The Top Burners list will shift away from Layer 2 Rollups as they use the cheaper Blob space. The list will be re-dominated by core L1 DeFi applications and Stablecoin movements. However, the overall health and user volume injected by the scaled L2s will be the key factor in determining if the total
$ETH burn rate becomes strongly deflationary again. The upcoming Fusaka upgrade, focusing on even more scaling, aims to further accelerate this user
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