I. Vitalik's Ethereum simplification plan: from “functionalism” to “minimalism”

Ethereum co-founder Vitalik Buterin proposed a disruptive long-term plan in 2025, aimed at simplifying Ethereum's core protocol to approach the simplicity of Bitcoin. The core idea of this plan is to enhance resilience and decentralization by reducing protocol complexity, with specific paths including:

II. The game of simplicity versus functionality

III. Layer2 melee: Why has Ethereum's “avatar” fallen into internal strife?

Although Ethereum has scaled through Layer2s (similar to “sub-networks”), the ecosystem faces three major crises:

1. Power games: Where's the promised decentralization?

- The core controllers of leading Layer2s (such as Arbitrum) remain in the hands of the development team, raising user concerns about a “centralization relapse”;

- Tokenomics failure: Tokens like ARB plummeted upon launch, while Coinbase's Base chain succeeded by “not issuing tokens + social engagement”;

$ARB

2. External strong enemies attacking

- Solana is seizing users with “second-level transactions”, while TON is growing wildly with Telegram's 900 million users; $SOL

- Ethereum's Layer2s are caught in homogenous competition: issuing points, conducting airdrops, but with similar functionalities;

3. Developers complain

- “Building DApps now is like opening a chain store—every Layer2 has to renovate from scratch, the costs are too high!”

IV. ETF clearance: both opportunity and shackles

- SEC gives the green light: Ethereum spot ETF approved in May 2024, officially trading in July, raising $9 billion in the first week;

- Price rollercoaster: ETH once soared to $3,700, but fell back to the $3,000 range due to staking issues (fearing it would be classified as a security);

Future impacts:

- Institutional funds may flow into Layer2 tokens and AI projects (such as Render Network RNDR), exacerbating market differentiation;

- Regulatory aftereffects: ETFs cannot be staked, equivalent to buying gold but not being able to deposit it in a bank for interest, reducing long-term attractiveness;

V. The biggest challenge of the five-year plan: ideals are abundant, but reality is stark

- Switching to RISC-V architecture requires rewriting smart contracts, and veteran developers bluntly say: “What’s the difference from learning a new language?”

- Risk of community division: Some believe the existing ZK-Rollup technology is sufficient, and there's no need for upheaval;

- User growth is not keeping pace with the decline in Gas fees; the DA layer (data storage) is not generating enough profit to sustain the ecosystem;

The envisioned “explosion of modular applications” has yet to materialize; do you believe in Vitalik's five-year gamble? $ETH