Vitalik: High Intervention Governance Needed for Fee Burn, May Drive Up Gas Prices

Vitalik posted on the X platform, stating that if the fee burn is to support an ETH market cap of approximately $270 billion, Ethereum would be comparable to a large enterprise the size of L'Oréal, which ranks around 55th in market cap. He estimated that L'Oréal's annual R&D expenditure accounts for about 0.58% of its market cap; if Ethereum invests at this ratio, it would need to allocate approximately 700,000 ETH annually through the protocol, resulting in a reduction of validator income by about two-thirds. Vitalik pointed out that large enterprises need to continuously invest and govern, and if Ethereum is to maintain its competitiveness in the long term, it will require highly interventionist governance, which is difficult to reconcile with decentralization and resistance to capture. He also mentioned that optimizing fee burns may mean pursuing higher Gas prices, making it impossible for some users to participate. Pricing that maximizes the product of price and usage may lead to less usage than pricing that aims to expand usage as much as possible within the constraints of secure blockchain resources.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.