Opinion: Ethereum needs to establish a value capture mechanism, otherwise it will become an outdated security layer

Author: zak.eth , Corn Co-founder

Compiled by: Felix, PANews

Ethereum’s value is leaking to L2. Rollups extract fees, MEV, and liquidity, while ETH stakers are left behind. If this continues, Ethereum will become a stupid security layer while L2 prints money.

L2s don’t need to use ETH as gas, but they do need to pay for the security of Ethereum. Currently, they pay almost nothing. This needs to change. Ethereum is not a free lunch. L2s should pay rent.

Base collected about $2.5 million in fees last month, while paying less than $11,000 to Ethereum. For every $1 paid to ETH, Optimism makes about $321 from L2 fees. L2 profits are staggering, but ETH sees almost no value.

This is crazy.

Each rollup should contribute to Ethereum in one of the following ways:

• ETH collateral deposit: L2 sorters should use ETH as participation collateral
• Settlement Fees: Part of L2 Fees Should Go to Ethereum Stakers
• MEV redistribution: MEV generated by L2 should be routed back to Ethereum

If L2 does not use ETH as gas, it should still be required to stake ETH or deposit a portion of its token supply into the ETH Treasury. This treasury will act as an index for all rollup economies, making ETH the financial layer of the L2 ecosystem.

Ethereum validators should secure rollups, not just L1s. L2 sorters should be required to stake ETH, and re-staking should be used to extend Ethereum’s security to all rollups. If L2s want Ethereum’s trust, they need to pay for it.

Every L2 needs liquidity to transfer assets across chains. ETH should be the default settlement asset for all cross-rollup transactions. Native gas tokens are great, but ETH needs to be the liquidity layer.

L2s don’t have to be forced into one model. They can use their own tokens, their own sorters, and their own economics. But Ethereum needs to capture value, either through ETH staking, fees, or direct hooks into the rollup economy.

Currently, Ethereum is subsidizing L2 while L2 is extracting all the benefits. This is unsustainable. Either Ethereum is forced to adjust now, or it risks becoming an obsolete security layer for rollups.

Related reading: Ethereum Foundation’s “Game of Thrones”, where is the foundation’s major reform heading?