{"id":95262,"date":"2026-03-16T14:55:42","date_gmt":"2026-03-16T11:55:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=95262"},"modified":"2026-03-17T08:23:11","modified_gmt":"2026-03-17T05:23:11","slug":"the-end-of-cheap-ether-why-buterin-is-rewriting-l2s-future-and-who-may-be-left-behind","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/the-end-of-cheap-ether-why-buterin-is-rewriting-l2s-future-and-who-may-be-left-behind\/","title":{"rendered":"The End of &#8220;Cheap Ether&#8221;: Why Buterin Is Rewriting the Future of L2 and Who Will Be Left Behind"},"content":{"rendered":"<p>For years a stereotype ruled crypto: expensive Ethereum is for whales; ordinary users belong on the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">\u201csecond floor\u201d<\/a>. Billions of dollars fuelled ecosystems whose business model was simple intermediation: projects bought mainnet blockspace wholesale to offer clients cheaper transactions.<\/p>\n<p>The <a href=\"https:\/\/forklog.com\/en\/news\/what-are-rollups-and-how-do-they-scale-ethereum\">Rollup<\/a>-centric strategy looked unassailable until February 2026, when Ethereum co-founder Vitalik Buterin <a href=\"https:\/\/forklog.com\/en\/news\/vitalik-buterin-as-ethereum-scales-the-need-for-l2-diminishes\">signalled a shift in direction<\/a>: the base layer is gearing up for a technological leap, and the network no longer needs centralised \u201cbranded shards\u201d.<\/p>\n<p>With the new <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-developers-plan-seven-hard-forks-by-2029\">Strawmap scaling plan<\/a>, the market stands on the brink of sweeping change. Here is why the idea that only the second layer offers cheap transactions is obsolete\u2014and how leading L2s may respond.<\/p>\n<h2 class=\"wp-block-heading\">A turn in direction and the scaling paradox<\/h2>\n<p>Since 2020 Ethereum\u2019s roadmap <a href=\"https:\/\/ethereum-magicians.org\/t\/a-rollup-centric-ethereum-roadmap\/4698\">was built around rollups<\/a>. The assumption was that the mainnet would remain an expensive, slow but secure foundation, while most user activity would shift to blockchains such as <a href=\"https:\/\/forklog.com\/en\/news\/what-is-optimism-op\">Optimism<\/a>, <a href=\"https:\/\/forklog.com\/en\/news\/what-is-arbitrum\">Arbitrum<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-base-coinbases-l2\">Base<\/a>.<\/p>\n<p>In early 2026 Buterin effectively ripped up that social contract. His policy pronouncements on X were a cue to radically reassess architectural priorities.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts:<\/p>\n<p>* L2s&#8217; progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected<br \/>\n* L1 itself is scaling,\u2026<\/p>\n<p>\u2014 vitalik.eth (@VitalikButerin) <a href=\"https:\/\/twitter.com\/VitalikButerin\/status\/2018711006394843585?ref_src=twsrc%5Etfw\">February 3, 2026<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>For investors this is a reason to reassess the market capitalisation of L2 tokens whose utility rested on the narrative of \u201csaving\u201d Ethereum from high fees. For developers it reads like an ultimatum: offer genuinely distinctive products or end up as a redundant link in the gas-resale chain.<\/p>\n<p>A paradox has emerged: while the industry spun up hundreds of rollups to relieve the mainnet, Ethereum itself no longer needs them in their old guise. Behind the shift are L2s\u2019 structural decentralisation problems\u2014and the base chain\u2019s readiness for aggressive scaling.<\/p>\n<h2 class=\"wp-block-heading\">A crisis of trust and the \u201ctraining wheels\u201d<\/h2>\n<p>The trigger for Buterin\u2019s discontent was technical stagnation and L2 teams\u2019 reluctance to embrace real decentralisation. Back in 2022 he <a href=\"https:\/\/ethereum-magicians.org\/t\/proposed-milestones-for-rollups-taking-off-training-wheels\/11571\/10\">proposed<\/a> a three-step rollup-maturity scale: from Stage 0 (full developer control) to Stage 2 (security ensured solely by code and cryptography).<\/p>\n<p>By early 2026 it became clear that progress towards Stage 2 was far slower than the Ethereum Foundation had hoped. Most major networks are stuck at the first stage. They keep the \u201ctraining wheels\u201d\u2014<span class=\"old_tooltip\" data-descr=\"bodies empowered to make decisions in the interests of blockchain security\">security councils<\/span>, <a href=\"https:\/\/forklog.com\/en\/news\/singlesig-or-multisig-what-should-bitcoin-holders-choose\">multisigs<\/a> and admin keys that allow manual changes to blockchain state.<\/p>\n<p>The issue is not just technical difficulty. Buterin pointed to a structural conflict of interest: many projects are deliberately slowing the handover of control to their communities.<\/p>\n<p>Motivations range from preserving business models to meeting regulatory demands. Some developers openly refuse sweeping changes to suit institutional clients who want the option to censor transactions or freeze assets. That sits uneasily with Ethereum\u2019s principles.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-276826\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-efafb36c153c3021-8878161232262816-1024x636.png\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-efafb36c153c3021-8878161232262816-1024x636.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-efafb36c153c3021-8878161232262816-300x186.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-efafb36c153c3021-8878161232262816-768x477.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-efafb36c153c3021-8878161232262816-1536x954.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-efafb36c153c3021-8878161232262816-2048x1273.png 2048w\" alt=\"Stage1\" width=\"1024\" height=\"636\" \/><figcaption class=\"wp-element-caption\">Only a few projects have reached Stage 1; a large share remains stuck at \u201cStage 0\u201d. Source: <a title=\"L2BEAT\" href=\"https:\/\/l2beat.com\/scaling\/summary\">L2BEAT<\/a>.<\/figcaption><\/figure>\n<p>Today\u2019s L2s face several core problems:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>an illusion of continuity:<\/strong> projects trade on Ethereum\u2019s brand while remaining isolated systems with \u201coptimistic\u201d <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cross-chain-bridges\">bridges<\/a>, week-long withdrawal delays and centralised sequencers;<\/li>\n<li><strong>technological stagnation and copy-paste:<\/strong> instead of new architectures the market is awash with <a href=\"https:\/\/forklog.com\/en\/news\/vitalik-buterin-criticizes-the-creation-of-yet-another-copy-of-evm-networks\">EVM clones<\/a> that bring no advances in performance or privacy;<\/li>\n<li><strong>dependence on multisigs:<\/strong> control over <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-smart-contract\">smart contracts<\/a> remains in the hands of a few. Security depends on people, not mathematics;<\/li>\n<li><strong>poor interoperability:<\/strong> liquidity is fragmented across hundreds of rollups, degrading the user experience.<\/li>\n<\/ul>\n<p>In Buterin\u2019s view, if a project cannot\u2014or will not\u2014reach Stage 2, it should not be considered a full-fledged part of Ethereum.<\/p>\n<h2 class=\"wp-block-heading\">Ambitious plans<\/h2>\n<p>While second-layer projects have bogged down in partial centralisation, Ethereum Foundation researcher Justin Drake <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-developers-plan-seven-hard-forks-by-2029\">unveiled<\/a> Strawmap\u2014a sweeping document sketching the network\u2019s new horizons and tempo.<\/p>\n<p>The roadmap outlines roughly seven planned <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-hard-fork\">hard forks<\/a> through 2029, with updates every six months. Drake says intensive use of artificial intelligence during development could shorten those timelines.<\/p>\n<p>Consensus-layer upgrades follow a \u201cstellar\u201d naming scheme (Altair, Bellatrix, Capella, Deneb, Electra, Fulu). Only two have confirmed names\u2014<a href=\"https:\/\/forklog.com\/en\/news\/a-quiet-evolution-why-whales-are-buying-ethereum-ahead-of-glamsterdam-and-hegota\">Glamsterdam and Hegota<\/a>\u2014and both are slated for rollout in 2026.<\/p>\n<p>Stra wmap effectively turns Ethereum into a direct competitor to its own rollups. The stated performance targets look menacing for projects built on reselling cheap gas:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>L1 throughput up to 10,000 <span class=\"old_tooltip\" data-descr=\"transactions per second\">TPS<\/span>:<\/strong> achieved via a limit of 1 GB of gas per second, thanks to <a href=\"https:\/\/forklog.com\/en\/news\/what-is-zkevm\">zkEVM<\/a> at the protocol level and real-time generation of cryptographic proofs;<\/li>\n<li><strong>L2 throughput up to 10m TPS:<\/strong> reached using data-availability sampling that lets second-layer networks publish up to 1 GB of data per second;<\/li>\n<li><a href=\"https:\/\/forklog.com\/en\/news\/native-rollups-what-they-are-and-how-they-could-bring-money-back-to-ethereum\"><strong>native rollup precompile<\/strong><\/a><strong>:<\/strong> a protocol-integrated function for verifying ZK proofs. It lets L2s upgrade in lockstep with the mainnet and fix critical bugs via a mainnet hard fork.<\/li>\n<\/ul>\n<p>Buterin placed special emphasis on reducing block times. Twelve seconds is too slow for modern decentralised applications.<\/p>\n<p>Speed-ups are planned in stages: first from 12 to 8, then to 6, 4 and 2 seconds. The key condition is optimising <span class=\"old_tooltip\" data-descr=\"peer-to-peer \u2014 direct interaction between two parties without third parties\">P2P<\/span> communication between nodes so blocks propagate without overloading the network. In parallel, transaction finality is to be cut from 16 minutes to 6\u201316 seconds.<\/p>\n<p>That will require substantial execution-layer changes, including a move to post-quantum cryptography using hash-based signatures.<\/p>\n<h2 class=\"wp-block-heading\">The great split: L2 developers strike back<\/h2>\n<p>Claims that the current L2 model has lost its relevance <a href=\"https:\/\/forklog.com\/en\/news\/l2-developers-debate-with-buterin-on-ethereum-scaling\">sparked<\/a> heated debate among project leaders. The focus quickly shifted from technicalities to defending market capitalisations.<\/p>\n<p>Stephen Goldfeder, co-founder of Offchain Labs, took the hardest line. He stressed that Arbitrum was never conceived as \u201ca service for Ethereum\u201d. The mainnet is merely a settlement security layer; L2 networks are independent economies.<\/p>\n<p>As evidence, Goldfeder recalled peak-load periods when Arbitrum and Base together processed over 1,000 TPS while the mainnet lingered at 15\u201320 TPS. He warned that if Ethereum devalues rollups\u2019 role, institutions will launch sovereign L1s\u2014ushering in full-blown liquidity fragmentation.<\/p>\n<p>Base creator Jesse Pollak sought conciliation. He agreed that second-layer solutions should not remain \u201cjust cheap ether\u201d and shifted the focus to user experience. Teams are betting on <a href=\"https:\/\/forklog.com\/en\/news\/what-is-account-abstraction\">account abstraction<\/a>, simpler onboarding and distinctive features. Even with a fast base layer, users need smooth interfaces the mainnet, by design, cannot provide.<\/p>\n<p>StarkWare co-founder Eli Ben-Sasson responded wryly. He noted that Buterin\u2019s \u201cnew vision\u201d describes what <a href=\"https:\/\/forklog.com\/en\/news\/what-are-starknets-blockchain-and-cryptocurrency\">Starknet<\/a> has been building for years\u2014a system based on <span class=\"old_tooltip\" data-descr=\"a cryptographic mechanism using recursive-proof technology\">ZK-STARK<\/span> proofs, high performance and a path to decentralisation (Stage 2).<\/p>\n<p>Beneath the sparring lies a fundamental problem: L2 teams now have to re-justify the value of their tokens. If scaling is executed successfully at the base layer, many projects risk fading from view.<\/p>\n<p>Buterin\u2019s scepticism toward the \u201crollup-centric\u201d model jars with marketing strategies that for years leaned on symbolic proximity to the Ethereum mainnet as the chief source of legitimacy.<\/p>\n<h2 class=\"wp-block-heading\">Spectrum, not standard: a new taxonomy for the ecosystem<\/h2>\n<p>Buterin suggests abandoning a rigid L1-versus-L2 dichotomy in favour of a \u201cspectrum of possibilities\u201d. Projects will be classified by technical architecture and real security contribution, not advertising claims.<\/p>\n<p>He highlights three directions:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>app-specific systems:<\/strong> solutions with unique logic, such as game engines or decentralised identity. Ethereum serves as the base layer, but these systems do not seek full <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-ethereum-virtual-machine-evm\">EVM<\/a> compatibility;<\/li>\n<li><strong>institutional networks:<\/strong> corporate blockchains that may retain partial centralisation for regulatory reasons, but must publish ZK proofs or state data on the mainnet for transparency;<\/li>\n<li><strong>non-financial applications:<\/strong> social platforms, AI agents and reputation systems. Developers are urged to build products resilient to corporate or state pressure.<\/li>\n<\/ul>\n<p>The foundation for all applications should be the CROPS concept, <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-co-founder-advocates-for-ecosystem-overhaul-emphasizing-privacy-and-ai\">proposed<\/a> in early March 2026:<\/p>\n<ul class=\"wp-block-list\">\n<li>censorship resistance;<\/li>\n<li>open source;<\/li>\n<li>privacy;<\/li>\n<li>security.<\/li>\n<\/ul>\n<p>Privacy is singled out as the bedrock of freedom. The Ethereum Foundation is bolstering teams integrating privacy tools into the base layer. One such effort is Kohaku\u2014a modular open-source stack for building secure wallets.<\/p>\n<p>Buterin sees the future of interfaces in deep integration with AI tools. Neural networks will simulate transactions before signing: users see a clear outcome and confirm manually only in critical cases.<\/p>\n<h2 class=\"wp-block-heading\">New advances and the \u201cadoption paradox\u201d<\/h2>\n<p>The Ethrex team, together with the Ethereum Foundation and L2BEAT, has already <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-developers-unveil-prototype-of-native-rollups-without-zk-proofs\">released<\/a> code and documentation for a native rollup execution environment.<\/p>\n<p>The prototype implements <a href=\"https:\/\/eips.ethereum.org\/EIPS\/eip-8079\">EIP-8079<\/a> on the Ethrex client and introduces a new mechanism\u2014the <span class=\"old_tooltip\" data-descr=\"a special type of smart contracts that are embedded directly in the node (client) code and executed not by the EVM but at the level of native code\">precompile<\/span> EXECUTE. The function lets L2 blocks be re-executed directly on the mainnet, so the mainnet itself attests to their correctness.<\/p>\n<p>At present all L2s in the Ethereum ecosystem validate via fraud proofs or ZK schemes. Native rollups propose an alternative: the base chain recomputes network state through EXECUTE. External proofs are no longer required. If the concept proves out, rollups could inherit security parameters and software upgrades directly from Ethereum.<\/p>\n<p>Despite developer activity, the cryptocurrency\u2019s price continues to stagnate. CryptoQuant analysts <a href=\"https:\/\/forklog.com\/en\/news\/cryptoquant-highlights-ethereums-adoption-paradox\">noted<\/a> a gap between on-chain demand and the price of ETH, which has fallen by more than 50% from recent peaks.<\/p>\n<p><script async src=\"https:\/\/telegram.org\/js\/telegram-widget.js?23\" data-telegram-post=\"cryptoquant_official\/3502\" data-width=\"100%\"><\/script><\/p>\n<p>The divergence is not limited to user numbers. CryptoQuant recorded a sharp surge in smart-contract and automated-protocol activity.<\/p>\n<p>Experts attribute the gap to capital outflows\u2014price action is driven by flows, not user growth. Owing to this \u201cadoption paradox\u201d, Ethereum risks sliding to $1,500, <a href=\"https:\/\/forklog.com\/en\/news\/cryptoquant-predicts-ethereum-could-fall-to-1500-amid-adoption-paradox\">said<\/a> researcher Julio Moreno. Absent a decisive market shift, the asset could reach that level in late Q3 or early Q4.<\/p>\n<p>Even so, record on-chain activity may be <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-address-spoofing-attacks-surge-by-600-following-fusaka-update\">driven<\/a> by mass <span class=\"old_tooltip\" data-descr=\"address poisoning\">\u201caddress poisoning\u201d<\/span>. Etherscan data show that after the <a href=\"https:\/\/forklog.com\/en\/news\/fusaka-upgrade-what-it-means-for-ethereums-future\">Fusaka<\/a> upgrade, the number of dust USDT transfers jumped by 612%. One reason for the rise in scams is lower network fees.<\/p>\n<h2 class=\"wp-block-heading\">Back to basics\u2014or forced evolution?<\/h2>\n<p>The takeaway: the era of earning by simply cloning EVM infrastructure is ending. A new vector for the ecosystem is at hand.<\/p>\n<p>The narrative of \u201csaviour rollups\u201d is losing relevance. The network is evolving either into a global computer with 10,000 TPS on the base layer, or into a verification substrate for thousands of specialised platforms adhering to CROPS.<\/p>\n<p>Buterin\u2019s metaphor <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-co-founder-advocates-for-ecosystem-overhaul-emphasizing-privacy-and-ai\">about \u201ctaking off jackets and ties\u201d<\/a> is a call to return to cypherpunk ideals. The co-founder expects more flexibility and less corporate control. Nodding to the internet culture around the <a href=\"https:\/\/opensea.io\/collection\/milady\">Milady<\/a> NFT collection, he notes that to preserve freedom one sometimes has to leave the comfort zone and symbolically \u201cspill wine on your chest\u201d, shedding old constraints.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why is Buterin rewriting Ethereum&#8217;s L2 future? ForkLog examines the new roadmap, the death of rollup-centric models, and which networks will survive.<\/p>\n","protected":false},"author":1,"featured_media":95263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"5","cryptorium_level":"","_short_excerpt_text":"Why \u201ccheap ether\u201d on L2 is ending\u2014and what it means for rollups.","creation_source":"ai_translated","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[46,200],"class_list":["post-95262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-ethereum","tag-vitalik-buterin"],"aioseo_notices":[],"amp_enabled":true,"views":"157","promo_type":"1","layout_type":"5","short_excerpt":"Why \u201ccheap ether\u201d on L2 is ending\u2014and what it means for rollups.","is_update":"0","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=95262"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95262\/revisions"}],"predecessor-version":[{"id":95278,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/95262\/revisions\/95278"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/95263"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=95262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=95262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=95262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}