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I agree with Myles when he says that, regardless of the exact mechanics of the value capture, ETH will be more valuable as more economic activity takes place in the ecosystem; optimizing for value capture today feels premature.

Fundamentally, I consider ETH to derive most of its value from being a global, permissionless store of value, and while it is engaging to discuss the value accrual story as it relates to scaling of the ecosystem, long-term user and developer growth should take precedent over short-term focus on token mechanics. The rollup-centric roadmap makes a lo... See more

Again this underscores my core premise, which is that Ethereum should maximize economic activity within its platform (including rollups) and ETH should position as a true permissionless, digital store of value (see related tweets from Doug & Sassal) more so than an interest-bearing capital asset.

Ethereum is fundamentally about property rights. The Ethereum protocol creates a digital, self-custodied, permissionless asset whose value can be transmitted globally and cannot be seized or censored. Ethereum's relentless pursuit of decentralization is the means to that end. Any compromise on decentralization opens an attack surface for regulatory... See more

The three fundamental pillars of this argument are,

1. Blockchains are differentiated from traditional finance through their strong property rights – the inalienable right to store and transmit value.


2. Centralization provides a means by which powerful entities can influence the outcomes of blockchains.


3. The value stored in a property rights system is direc

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BTC has a strong case for being digital gold – a "pet rock" that is highly valuable but static. I believe ETH has a more dynamic future as a censorship-resistant, programmable store of value underpinning a much larger digital economy by providing permissionless settlement, DA, and execution.

My (e)thesis: settlement, data availability, execution — in that order.

Rollups depend on Ethereum for security and decentralization , while Ethereum depends on rollups to expand the economic activity of the ecosystem .

However, L1 settlement alone is an incomplete picture of what the rollup-centric roadmap aims to accomplish. Ethereum also serves as an affordable settlement and DA layer for rollups. I see rollups (and their corresponding rollup platform à la Optimism Superchain and Arbitrum Orbit) as independent fiefdoms. Each platform will compete to give users ... See more