Connect with us

Coin Market

Devs introduce Ethereum R1 layer-2 scaling solution

Published

on

A group of developers within the Ethereum ecosystem, operating independently of the Ethereum Foundation, have announced Ethereum R1 — a layer-2 (L2) scaling solution for the Ethereum network that does not include a native token.

According to the announcement, the project relies entirely on donations, does not have venture funding, and does not have any pre-mined token allocations or a governance token. The project’s team wrote in a May 1 X post:

“General-purpose L2s should be commodities — simple, replaceable, and free from centralized dependencies or risky governance. Ethereum R1 is our answer to that call — the rollup grounded in credible neutrality, decentralization, and censorship resistance.”

“Most L2s today are acting more like new L1s than an Ethereum scaling solution — private allocations, opaque governance, and centralized control,” the developers continued.

The announcement points to increasing concerns within the Ethereum community regarding the current direction of many layer-2 scaling solutions, which some view as potentially misaligned with the interests of the base layer

Related: Ethereum community members propose new fee structure for the app layer

Ethereum’s L2-centric approach: unique value proposition or exploitation?

Ethereum’s Dencun upgrade in March 2024 significantly lowered fees for its layer-2 networks. By September, revenue on the Ethereum base layer collapsed by 99%.

As a result, transaction costs on the Ethereum network base layer dropped to a five-year low of roughly $0.16 per transaction in April 2025, due to a lack of demand for block space on the base layer.

Ethereum’s transaction fees are determined by demand and network traffic — higher demand and network traffic translate into higher fees for the base layer and more revenue.

Ethereum’s base layer revenue collapsed in Q1 2025. Source: Token Terminal

While critics continue to argue that this provides perverse incentives for layer-2 networks to grow at the expense of the base layer, protocols continue to argue that Ethereum’s many layer-2 networks are a feature, not a bug.

Anurag Arjun, co-founder of the unified chain abstraction solution Avail, told Cointelegraph that Ethereum’s layer-2 approach gives users a virtually unlimited number of high-throughput chains to choose from, as opposed to the singular one-size-fits-all approach employed by monolithic blockchain protocols.

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Coin Market

NY lawmaker proposes ‘AI dividend’ to address potential job losses

Published

on

By

The proposed AI dividend would be funded by taxes on AI use and equity stakes in AI companies, paying US citizens if automation meaningfully displaces workers.

Continue Reading

Coin Market

Coinbase’s AI payments protocol x402 launches app store for AI agents

Published

on

By

Coinbase’s x402 AI payments protocol has launched Agentic.market, a platform where AI agents can discover and use AI-friendly services.

Continue Reading

Coin Market

Code is ‘functional’ free speech under the First Amendment: Coin Center

Published

on

By

Crypto software developers are concerned about whether they could be held criminally liable for publishing their software, following high-profile convictions last year.

Continue Reading

Trending