ETH value capture, Base is scaling and more - The Daily Gwei Refuel #754 - Ethereum Updates

Transcript

hello everyone welcome to another episode of The Da refuel where C latest news in the system I'm your host and this is 27th of March 2024 all right everyone let's get into it so kicking off today's episode we have a bit of movement on the I guess regulatory political front in the US here so Alexander uh grieve uh who is uh works as Government Affairs at Paradigm the VC firm tweeted out this little brief here or this kind of I guess letter that Patrick McKenry and Glenn tomsa uh two people in US politics uh sent to to the SEC and basically asking them all about this company called promethium now as you guys probably are aware promethium is this company that the SEC is parading around

as basically a company that was able to register with the SEC to custody crypto assets as Securities and then the SEC basically says to these other companies like coinbase and and others hey you know here here here's the path to register see we you know Promethean registered why can't you when in reality we know that there is no clear path to register here and promethium is really just kind of a trojan horse trying to essentially get these crypto assets labeled as Securities because for example if promethium was to start trading and custody eth as a security then the ACC can kind of parade this around and say hey look you know promethium is doing it as a security this is precedent you know this means that uh why why isn't clone base doing this or why isn't Kraken doing this or

why isn't Gemini doing this so there really is kind of this I guess like really warped effort from the SEC here to do this and this has been going on for a little while now you guys will know that the pr promethium I guess like CEO was uh was fronting I think like uh I don't know if it was I don't think it was Congress it was like some kind of Senate committee meeting or something like that a few months ago but yeah we all know that this is basically just like an an SEC scop to try and basically uh I guess like diminish the efforts of the people that are trying to uh do the right thing in in in the US yeah all the companies trying to do the right thing like coinbase but in this letter basically the uh you know Patrick memy

and Glenn tomsa rip into the SEC asking them questions about about promethium essentially so you can see here this quote that Alexander pulled where I begin the quote they say the SEC has used the following terms to describe digital assets they they've said they're called crypto tokens crypto security tokens crypto assets crypto asset Securities digital asset Securities and digital asset Securities that are investment contracts so please provide definitions for each term and explain how they differ differ from one another and as you guys know uh none of these terms actually exist in the law like there's no law that says that something is a crypto asset security that that's just not a thing it's something that the SEC has actually made up in order to suit their own narrative so essentially

these two politicians are basically asking the SEC you know hey Define these things for us and explain why they're different to each other explain why these terms actually you know hold hold um weight what what they mean and so on and so forth do I think that this is going to lead to anything uh substantial no because as we know every time Gary Gensler has fronted these politicians he just basically gives wishy-washy answers doesn't give anything concrete the Republicans tear him to pieces the Democrats suck up his ass and we get nowhere basically it's just Politics as per usual with this stuff but it's still good to see that there is kind of motion here you know keeps this stuff in the headlines as I said before like there are headlines to consider here there are the kind of there there's obviously the media spin to consider

here and as the Democrats are in in uh well as the US is in an election year right now and the Democrats obviously want to win that election uh it's probably not a good thing for them you know it's probably a net negative for them for there to be headlines like this considering that the Gary gendler is the chief of the SEC and he is a Democrat there but anyway you can read this full letter for yourself I'll link it in the YouTube description below for you to do so all right Christine Kim had a podcast that she did recently on her infinite jungle podcast with Jason ranck who is the co founder in CTO at puffer Labs um but I I mean you can go give this a listen for yourself I'll link it in the YouTube description below but what I wanted to focus on was one thing in

particular that I've been talking about for a while which is the fact that a lot of these staking Protocols are vampire attacking uh lighter and there are actually some hard numbers to this now so you can see here Christine basically said according to puffer labs' CTO puffer is on track to redeem about 3 to 4% of Ste supply for eth at mainnet launch and thereby reduce Lio dominance by about 1% now that 1% number may not seem like a lot but that is a substantial amount uh for lto dominance here I mean it's been coming down naturally anywhere as I talked about yesterday it's almost below 30% and then they get hit again by this vampire attack and that vampire attack that's going to happen uh because of puffa is actually going to be a signal to other

protocols basically saying hey this works you can do this so I do think we're going to continue to see obviously um you know stake get pulled out of lto go elsewhere but also stake go to other protocols you know as I showed yesterday on Hill duby's staking dashboard L isn't even in like the top 50 like it has out net outflows now it's not even growing anymore on a real basis it doesn't seem to be to be growing anymore at least over the last like week or two so there's just so much competition now and it was always insane to me that Lio was so big because as I said you know I I've said this for years I think at this point they were only big because of the fact that there wasn't much competition around they were first mover which obviously counts for a lot they've still

got a great product but wasn't all these other protocols you know there was no eify and puffer and swell and Renzo and a few of these other ones out there and then the independence as well such as I mean if you go to the eth2 staking dashboard you can see these ones and then the l2s like mantle for example running their own infrastructure staking the e that's in their Bridge so there was none of that until recently probably probably the last 6 months the bulk of that has gone live and now we're seeing what Lio uh I guess like what a saking ecosystem looks like when Lio has competition and it looks so healthy guys it looks so much better than it did even just a year ago and it's great to see uh you know these vampire attacks materializing here and there's I guess

there's two V types of vampire attacks right there's direct and indirect the indirect vampire attack I would say is the one where essentially all these other protocols that basically taking eth that that would have gone to Lio and getting it into their own staking protocols and then there are the direct vampire attacks like what puffer is doing here where they've essentially taking in St ether's deposits there's over I think $1.5 billion or something worth of St almost almost 1.5 billion I believe and they're going to it's still in St but they're going to be pulling that directly out of Li and then reaking it with their own infrastructure once they launch live on mayet and that will be considered you know pure puff eth right now puff eth just represents St it's basically a LRT on top of St here because the St is inside IG layer but

yeah once their main net launches they're going to pull $1.5 billion worth from Lio which is a huge deal guys like no matter which way you slice it it's an absolutely massive deal here but anyway you can go listen to Christine's podcast I'll link it in the YouTube description below for you to do so all right so some big news out of coinbase over the last 24 hours so you can see here Max bransburg from uh coinbase tweeted out going forward coinbase is going to be storing more corporate and customer usdc balancers on Bas this enables us to manage and secure customer funds with lower fees and faster settlement times with no impact to the coinbase user experience with we're excited to continue to move our business on chain and hope other

companies will follow our lead this is just absolutely magical to see because if you recall a couple of months ago I was saying that I believe coinbase needs to go all in on base as a payments layer using usdc it makes absolute sense for them to do this from a bunch of different uh different angles here and this to me signals that that's what they're doing here by bringing all this usdc onto base there's going to be more and more usdc liquidity there and usdc I guess like General kind of like size for more more and more people to play with so you can get the whales on there and then that just you know liquidity begets liquidity we have whales on there we have more liquidity for everyone we have more and more people coming online because Bay is just getting absolutely hit with traffic uh uh lately it's it's

growing so very very fast right now and this helps coinbase continue to bring themselves and their users on chain because if the usdc is all on base then essentially it's always going to be a a kind of like free withdrawal for their coinbase users you know if you're on coinbase and you say okay well you withdraw usdc to base I mean I believe that's already free but this is being done where essentially it's it can be done for Wales and it can be done in a more cost effective way where kbase won't need to bridge the usdc from mainnet in to base and pay that cost they could simply it's not a huge cost but obviously it's a cost but what they can do is they can simply just uh uh uh I guess like send the usdc from their base addresses to to users on base and

then continue to offer those free uh withdrawals there now on top of that as I've mentioned before coinbase has this verification program that they're running where essentially they're using the ethereum attestation service to essentially verify that you own the wallet that you're sending your kind of funds to and then in the future they're going to be offering free transactions on base for those uh for those users which essentially means that usdc on base will become a payment will become a free transfer which means that base deao becomes the best payments layer in crypto by far it beats Tron I mean people went to Tron because of the cheaper fees it beats like Tron can't compete on this Tron doesn't have the distribution that coinbase has it doesn't control the the stable coin like coinbase has a controlling uh share in

circle has 25% share in circle obviously a big influential share there whereas with tether it's completely separate separate to Tron so Tron is always touted out as this payments layer and it has been a good payments layer but base is going to be even bigger I I believe uh with the usdc Integrations here so just something really uh uh big here some big news something to keep an eye on and definitely signals that coinbase is deadly serious about getting everything onto base getting everything on chain and I really do believe that eventually and I'm going on record and saying this I'm not saying this based on any Insider information or anything but I do think for the base Vision to be fully realized it's actually going to get spun out of coinbase eventually and what I think is going to happen is that they're going to have a token like I

know they've said they're not going to have a token but I don't believe that I feel like they're going to have a token eventually so they're going to have a token and the the cool thing is is that because Bas has been incubated within coinbase they don't have any investors the only investor that they have I mean technically is coinbase right so essentially if they do a token they can allocate some percentage to coin base some percentage to the core kind of like team that's been working on it so on and so forth but then the rest of the token Supply can go to the community so that they will have this just massive growth War chest on top of the op tokens that they've already gotten from the um optimism treasury right to keep growing this thing and I and I know that there

are some concerns around this because obviously coinbase is a centralized company and people are concerned that you know bass is is becoming like the deao L2 right now and that has ramifications because coinbase is involved but if Bas spins out and Bas decentralizes like they say they're going to do because they want to get to stage two uh and then and then they have a token and basically the community runs the network then I don't really see the issue here because as I said like I do predict that they're going to spin out of coinbase eventually and do a token and then decentralize out to the community then they become like every other l2o essentially they've just been incubated by coinbase instead of going Andra VC money it's really the same thing here like I think the the major step up that Bas has is the BD efforts

obviously because obviously coinbase is um is is doing a lot of BD on Bas but coinbase from what I can see isn't necessarily playing too hard of favorites here they are still supporting all of the other l2s they support free transactions to them um yes there are advantages here to using bass if you're a coinbase customer but really I mean that's that's what you get when you own own the distribution like I think that's just free the free market at work here but anyway great to see B continuing to grow here I'm going to talk a little bit about more about Bas later in the episode but I just wanted to highight that for you guys uh today all right so I think the biggest news over the last 24 hours or at least the thing that people were talking about the most was this blast uh I guess like rug that

happened or exploit or hack that happened so there was this I believe nft project on the blast L2 called munchables that raised a bunch of money I think it was almost 70 million worth of eth and then it got exploited by what is suspected to be a North Korean hacker here uh and those funds were drained now of course this opened basically a huge conversation around the fact that blast is currently centralized like the the whole thing centralized centralized sequencer multi seek everything like that um and so people were asking well can't blast just roll back the chain or can't they just do in a regular State transition and can't they just essentially take the funds away from the hacker and give it back to the community and they can I mean as I said they're centralized and if there's no point being centralized if you're not going to

actually use that like you can't just be like okay well you know we're centralized uh because we're in the early stages and and then not use your centralization powers because you want to I don't know uphold the values of decentralization well the thing is is that you can't do that if you're centralized it's just decentralization theater by doing that now thankfully I guess like they didn't need to do any of that messy stuff uh the funds were actually returned you can see here that the munchable exploiter transferred all of the eth to the um to I guess like some some white hat address or something like that into a multi I don't know who owns the multisig but obviously it's not the hacker anymore um but this was also uh a subject of speculation because you can see here that uh Nia tweeted a reply

here saying that they believe that or there's a thesis that Pac-Man the founder of of blast froze the address and this is actually something that they can do this is probably the cleanest way to stop the hacker now what would what they would have done here at least I suspect and this is not confirmed this is me speculating here but what I suspect that they did is that they essentially blacklisted the address on their sequencer because they run the only sequencer because there is no Force exit to L1 that's not currently implemented in Blast essentially what that means is that unless you're able to get your transaction in via the sequencer then you're not going to be able to get get the funds out here so all they would have done he just blacklisted this address and then the per the the hacker might have been

trying to do transactions and nothing would have gone through because the sequencer is not processing those transactions there now this is a very very clean way of stopping the hacker I think this is using that your centralization powers without necessarily affecting anyone else now obviously centralized sequences the biggest risk of them is censorship as I've discussed before but in this case it was actually I guess like for the greater good now as I said this is speculation this isn't confirmed yet but it makes sense because the for those of you who might have seen this but the munchables exploiter actually sent the private key to the blast team in order to retrieve the funds now you wouldn't do that if you were going to return the funds normally you would just send the funds back right so that's why that lens even I guess like more Credence to this

thesis that the hacker couldn't get any transactions processed so they're like well screw this you know they're not going to uncensor me uh just so I can send the transaction like for example if the hacker asked hey guys I know you're censoring me can you uncensor me so I can send send you the funds back that's not going to work because then they could just send the fund somewhere else right so from that perspective the only option the hacker had was to send them the private key and then they would use that private key to uh you know to to submit the transaction and then only process the transaction that they submitted and nothing because you can do it on on a granular transaction level with the sequence so you don't have to do it just on the address level so even if the hacker tried to play smart they

wouldn't have been able to get their transaction process here so I think this was the cleanest way for them to actually do this and I'm glad that it resulted in the return of funds here but it opens up a huge area of discussion now around the centralization of l2s and I posted a tweet today where I said blast is showing us why decentralization is critical and why it's in every roll up/ layer 2's best interest to achieve stage two app and I link the stages here of the different the different rollup stages as you guys know V talac posted this a while ago you can check the Tweet out for for the thing for the um the criteria here um but in this case and in all cases where things are centralized guys it's a liability it really is a huge liability for these teams and

that's why whenever someone says that they don't think these l2s are going to decentralize I'm like what do you mean they're not going to decentralize like it's in their best interest to decentralize from multiple different angles like it is a huge liability for them to have this control control because for example let's say that um let's say that uh that that blast or I guess yeah blast didn't do anything here and let the hacker keep the funds and and it was proven that they were from North Korea do you really think the Department of Justice or any other us like the you know ofac or any other kind of like us-based entity wouldn't immediately uh communicate with uh I guess like the blast team and basically say hey why are you letting this known North Korea hacker take all this money to fund their nuclear weapons program

right like of course that was going to happen and you know given that blast is centralized they would have no recourse yet they wouldn't be able to say oh we can't do anything because you know it's onchain it's immutable and then the you know if if they if they're kind of like learned enough like ofac whoever it is the doj they could just say well no I mean it's completely centralized you can actually censor them or you can roll back the chain or you can do an a regular State transition they're probably not going to be as versed on that but they're not you know dumb enough not to know that these things aren't centralized because everyone on Twitter is saying it's centralized all they have to do is go on Twitter and see and see this play out so in in this case and in a lot of cases centralization is

a massive liability so all of these layer layer twos and rollups have every uh I guess like intention of decentralizing and I fully believe within the next two years most of the major ones are going to be at stage two like and let's give it to the end of 2025 but I do believe that they're going to be at stage two and I do believe that the only way that they will be able to make changes to the network is through uh I guess like their governance process right their Dow process where they have a you know potentially a council and things like that but there's going to be a time lock on that um and everything like that and anyone can run sequences anyone anyone can run nodes uh because as I said centralization is a very big liability for these teams uh and for

everyone involved with these things now it also opens up the wider discussion around will these uh I guess um will these entities like the doj and OAC will they delineate between centralized and decentralized will they actually care because as you guys know there's currently an ongoing trial with Alexi perv one of the tornado cach developers and a lot of these questions are being posed it's basically the judges prying him and saying you know didn't you have control here couldn't you stop it and him just repeating himself and saying no I I can't I couldn't have stopped it I don't have control this is immutable right and then it's going to open up an even further discussion about how censorship is applied at the protocol layer which we've been discussing for a while now but it just becomes an even I guess like uh more involved discussion

where essentially these entities start coing in more and more and they think okay well if they can't censor it if the developers can't censor it then when can where can it be censored or where can it be stopped it's it they don't I don't think they really think of it as terms of censorship they think of it in terms of like stopping criminal activity or stopping terrorism financing or whatever they want to call it so then they'll go down the stack and they'll say okay well there's these validators that process transactions on the network why can't they stop it and in reality they can and this is why we're doing a lot of research on on censorship resistance because we need to be able to essentially enforce censorship ship resistance on the network otherwise we lose really the main value prop of ethereum um but yeah there are those

questions posed and that's why we have things like the you know the relays and block Builders as well you know those things being uh being centralized uh represents a a liability for the cens resistance of the ethereum network as well so there's all that kind of playing into it so this is just such a w a wide discussion here and it's going to be one that we have over the next several years but I do think that these l2s and rollups can decentralize before this comes to a head before this really comes to a point where the I guess like um you know the The Operators or at least the teams Behind These l2s start getting you know hit by things like you know things start getting sanctioned or the ofac uh or the doj starts going after these teams um and I think they they're fully

aware of that as well so yeah we're going to see these things decentralize just today they're centralized for one reason or another but as I said um you know you can check out the stages for yourself and I believe that within the next two years so by the end of 2025 we're going to see most of the major l2s being uh uh you know at stage two here which is the no training wheels stage all right so I saw this just pop up before but uh blob fees were starting to creep up and you can see here uh you can see on the ultrasound money website that that that was starting to creep up here and it was above the target which meant that you were basically going back to how ethereum I guess like ethereum's fee Market works with priority fees

where essentially you're trying to outbid each other to post blobs here now I actually looked deeper into to this and it turns out this wasn't uh a natural kind of thing it was actually lanaa uh starting to utilize blobs and they went crazy just posting a lot of blobs to the network and as you can see Franchesco said you know it's just a backlog from lanaa they're posting blob transactions at a crazy rate uh after not posting anything for 11 hours and then for another 8 hours they're down to Just 4 hours of backlog left should be a few more minutes more and then one of the um people involved with L Dean Fox here who is the product lead of lanaa said that we we now have a limit on the number of blobs submitted at a time but happy to have burned some more eth so

that's cool you know they're burning eth but that's basically what was happening there and as I've said before guys like they were going to be these spikes they going to be these times where the blobs aren't used very efficent efficiently but it's in every rollups uh I guess um uh uh interest to make sure they're using blobs efficiently otherwise they're just overpaying and they're just losing money here so just wanted to point that out for you guys um there if you see this kind of creeping up probably better to like dive deeper into it I mean I tweeted this out before I dive deeper into it and I went and checked out um Hill Dobby's uh blob dashboard on dude analytics uh and it showed that uh it was basically this unknown entity that hadn't been tagged by Hill duby yet spamming these blobs and then I went on

chain and I went to Ether scan and I saw it and I saw lanaa and I'm like okay well that explains it I know that lanaa recently started using um blobs so that makes sense but then they weren't using blobs the proper way right they were just spamming it and and overpaying here but as you can see Dean said that they were just getting through that backlog uh and now they're just using blobs as per normal there all right so another thing that I wanted to kind of give a little bit of a mini rant about today is this kind of perverse narrative that I'm seeing perpetuate itself throughout the ecosystem right now now as you guys know after blobs went live data costs for l2s collapsed and they collapsed by like 99% and that means that they're paying very little to ethereum L1 at least right now

to store their data because blobs are not at capacity which means that there is no need to bid up the cost of blobs and and it means that uh essentially the execution side gets clogged before the blobs do and the execution side fees go up so for example Westy Capital here tweeted out that Bas reached a new all-time high of $ 1.73 million in transaction fees yesterday while paying only $4,000 to ethereum so essentially all of those costs were on the execution side so the execution priority fees kicked in but then the data cost didn't Spike because there was no um Spike of The Blob cost here so this is working as intended guys like this is exactly why we did blobs to lower that cost for

users here and to basically shift the bottleneck to the execution side of things which bass is addressing and I'll talk about that that shortly but what I wanted to address here is people looking at this and basically thinking oh well this is uh you know this is not healthy for ethereum like ethereum's value capture is now you know is now not great ethereum's value capture is now very bearish it means that eth isn't going to acove Value here which is insane to me for a number of different reasons and I think that the biggest reason that this is so insane to me is the fact that uh eth doesn't ACR most of its value from Fear Revenue anyway and I've talked about this at length before but I'm going to bring up a tweet here that I forgot to have queued up but this is my

tweet that I put out basically when was this August 7th 2023 where I basically gave a list of I guess value acral mechanisms for eth as an asset and I said that number one is eth's use as store of value and money number two is staking asset number three collateral asset number four it's us as a fee token and number five everything else so I put it use as a fee token as number four because even though I'm really bullish on know deflationary eth I'm really bullish on on the burn I'm really bullish on eat Fe e um kind of like um use for fees and fees being you know millions of dollars a day tens of millions of dollars a day it doesn't mean that I think that that is the primary driver of value for eth I still think and I strongly believe this

honestly like withy pretty much like this is this is the thing that I believe probably the strongest when it comes to e as an asset I believe that the vast majority of its value comes from its use as a store of value and a money okay how do we increase eth's use as a store of value and a money how do we increase that value capture there well we increase the use of eth we increase the network effect of eth okay how do we do that we scale ethereum oh look we're now going into the territory of where this doesn't make any sense when people are fighting eth and basically saying that oh you know ethereum is not capturing much values from from the layer twos right now that means eth as an asset is not going to be worth much it's going to bleed value you know so on and so forth

but that is not true at all we have just massively increased the network effect of eth by massively increasing the scale of l2s and that's going to keep happening these l2s are going to keep scaling themselves these fees on the L2 side aren't going to be like this Bas is about to scale which I'm I'm going to talk about in a sec and I know I've alluded to it a bunch of times but I've got a lot of comments there but the execution side is going to scale as well which means the these fees are going to come down too but the whole point of scaling is that we assume that there is so much more demand left to come and that we're basically at like I don't know the late 90s of the internet era where essentially you know we have a few things here and there there are nerds

playing with it but we're hitting scaling limits we can't have YouTube right now because the internet in the late 90s couldn't support something like YouTube there weren't enough connected households to uh to broadband right we was still on dial up and even before then on 64k modems so we're basically there when it comes to onchain products but we're massively scaling and over the next 5 years especially we're going to scale this out to just incredible Heights here now if we scale that out to incredible Heights and we scale up like 1,000x from where we are today what do you think that's going to do to e as an asset as a as a network effect that's going to increase that by 1,000x we're going to get eth into the hands of more people they're going to use it as a money they're going to use it as a store

of value and yes people are still going to be paying fees in eth which go down and settle to to the L1 and people are still going to be using the L1 to pay fees in eth anyway so I don't understand where this bearish narrative has come from that basically says if eth isn't capturing this value of course it is as long as people are using e as money and using it as a store of value on these l2s and using uh you know it as a collateral asset on these l2s and using it as a staking asset and a reaking asset like of course eth is going to accruit all of this value that is that it's just mind-blowing to me that people don't understand this if you actually look at the market caps of the two largest assets BTC and eth and you

compare their feue to their market cap and that's all you value them on they are way overv valued based on that like their p ratio is is enormous especially Bitcoins because BTC Bitcoin doesn't have that much fee revenue and it doesn't even capture that fee Revenue because doesn't even have a fee burn so when you think of it like that the reason why BTC is worth so much is because it's used as a store of value money it is worth that because its Network effect has been increased it has a huge Network effect I mean it just got the ETFs which again increases Network effect so really when you're looking at valuing these assets you need to look at them in in terms of network effect in terms of how many people are holding them how many people are aware of them how many people are using them as you

know store of values and money but also as investment vehicles as speculative investment vehicles there is that that kind of Premium there and then the final thing I'll saying say on this is that uh what matters in the end is aggregate fees right so what I mean by this is that you can have uh people paying $100 fees on L1 let's say it's it's cost $100 to swap on L1 it's like a really crazy day on L1 gas fees are super high it cost you $100 to swap that is roughly equivalent in terms of I guess like fee value capture to people doing swaps on an L2 for one cent and if you times that out 100 time um times 100 here that's 10,000 people doing a swap or 10,000 swaps happening on on layer 2os for $100

versus on layer one for $100 all else being equal and if you're counting like the data cost TI I mean it's not a one toone kind of math I'm just doing the math in my head right now I'm trying to make the math math but uh that that's kind of how it works there where you're essentially just shifting it to the layer two you're shifting that kind of I guess like cost and that Network effect to the to the layer twos and that is exactly how ethereum is scaling via the rollup Centric road map so yeah anytime you see someone saying that it's bearish that we you know we increase the um the the amount of data available on the ethereum network and that means that these l2s aren't paying much for data anymore that is completely wrong like for so many different reasons many of which that

I've outlined just then but I think that i' I've made my point and I think I've I've gone very ranty there and I'm already at almost 30 minutes here so I do want to I do want to definitely move on from this but yeah I thought that was just something worth pointing out but you can go check out this from Westy Capital as well as my other tweet that I put out back in August maybe you want to reread it I'll link it in the YouTube description below for you to do so all right moving on to that discussion about bases execution scaling that I was kind of alluding to the whole episode so Jesse Pollak on faras tweeted out that they're going to be increasing bases gas Target to 3.75 megas a second tomorrow and that tomorrow is today so basically Bas is going to scale today

and they say here will monitor then increase to 5 megag per second early next week our Northstar is 1 gagas per second and we'll keep increasing incre incrementally while we make progress in increasing uh L1 da managing State growth and scaling execution this is a huge unlock guys obviously bases have been hit very hard lately fees have gone up on the execution side but now they're going to be increasing uh I think they going to be basically increasing it by 50% and then 100% scale on the uh on on the execution side here and obviously increase it over time but this is one of the superpowers of the l2s look how quickly they can do this do you know how long it would take to do the same thing on L1 um and and the doing the same thing on L1 is basically increasing the

gas limit of of L1 and we saw an effort for this recently that effort was launched I think like a week ago now over a week ago and there's not much movement there at all right because you have to coordinate with obviously like everyone on the ethereum network all the validators and there are many many different things to consider here because L1 ethereum is very different to the l2s whereas on the L2 side of things I mean this is this is one of the super superpowers of being centralized right now is they can move very very fast and they can scale very very fast and they can hit the limits you know much faster than L1 can and that's exactly what bass is doing here that's exactly what the other l2s are doing and that's why you're going to see fees come down and then obviously it's going to hit a point

where da becomes the bottleneck again and then you're going to see see uh you know fees basically go up again on the on the da side and then we're going to increase the scalability of Da by increasing the size and the count of blobs that's going to happen slower so it's going to be interesting to see like how quickly blobs get saturated here but uh yeah I mean I'm excited to see what bases fees drop down to with these increases as I said it's going to be increased by 50% today I believe and then by 100% by early next week so you know over the next few days Bas is going to get very cheap again all right speaking of Bas njoku eia announced something today called Bas migrate so this is the Bas migration tool is a game changer for projects

looking to migrate their erc20 tokens to the base Network say goodbye to manual processors and hello to a seamless transition so this is one for the developers out there and one for people who basically have erc20 tokens as part of their project or if you're thinking if you or if you launch one on L1 and you want to bridge it to l2s this tool allows you to do that so I just wanted to highlight this for the developers out there maybe you know some developers that could uh you know make use of this so yeah you can go check this out it's at B base- migrate doxyz and I'll link this in the YouTube description below for you guys to check out all right so optimism announced today that there are overhauling the op retroactive public goods funding initiative now they're actually renaming

this to retr funding they're not calling it The retroactive public goods funding anymore which I think is probably the better name because there's been a lot of debate about around what constitutes a public good versus what doesn't so they've essentially just rebranded it as retr funding and they have allocated a total of 850 million op tokens to this initiative which a current value is like what is it four $3.5 $4 million or something like that worth of uh sorry 350 million to 400 million dollar worth of op tokens here if I'm doing my math correctly or billion I don't even know right now I think uh what's the current price I'm actually not mathing right now my math sucks today I'm just going to Google it yeah sorry 3 b400 million roughly based on a $4 op price so yeah a

lot of money set to go to retr funding here now as well as announcing this kind of Rebrand and announcing how many tokens are going towards this they've also announced the future round so they've broken the the rest of the 2024 rounds into four distinct categories so in May of 2024 there's going to be the onchain Builder round in August 2024 there's going to be the op stack round in and the governance round and then in October there's going to be a Dev tooling round and you can find out more about the each of these I'll link this in the YouTube description below for you to do so but I think this is overall a positive step here because I think the the the major thing that there was drama around was the fact that it was called public goods funding when in reality it

wasn't really public goods funding anymore it was just retr funding um and two it was uh not broken up uh into I guess like categories so essentially you had like just one big round where there was like 6 700 projects all trying to get a share of that pie um all part of different categories now there's going to be essentially four different categories and they're going to keep continuing this as as time goes on of course but there's going to be four distinct categories here that projects can fall into and there's no need for these projects to fight other categories they're just going to be competing I guess in a roundabout way within their own category here which is great to see but anyway you can go check this out I'll link it in the YouTube description below for you to do so all right last up here I just wanted

to show that Google is now showing your native account balance of your eum address across chains so you can see here this is my S.E address Google is currently showing my ethereum uh L1 arbitrum optimism and polygon POS uh balances here now I did mention this I think yesterday or the day before that I really wanted to see that um you know I I really wanted to see Google do this after they added support for ens names well maybe they heard my call maybe they were already doing this but yeah it's great to see that this is Now supported here and I do want to repeat what I said the other day in that guys like this is not a privacy like a violation of privacy Google doesn't have privilege access to this information they're literally reading this information off

of existing services like ether scan ARB scan optimistic uh ether scan and polygon scan and that those services are reading this information off of the very public blockchains that we all know and use like completely public there is no default privacy on these chains so I just wanted to to clarify that for people there but yeah you can go search your own address on here maybe you can find tokens on other chains you didn't know you had it's only showing you the um the the native gas token that these tokens use so or sorry like not the native gas token but the native token of these assets as stipulated by the the um uh that the chains themselves um and as you can see here it's showing me my eth balance on ethereum and arbitrum my op balance on optimism and my mic mic balance on the polygon POS chain here

but yeah you can go Google your own address I'm sure it'll come up there but on that note that's going to be it for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone on