Cyber ​​Capital founder Justin Bonds just lately expressed concern about Ethereum’s present predicament, blaming deep-seated corruption on a serious misalignment of its incentives.

Bonds argued on social media that the cash flowing into the ecosystem by way of Layer 2 options outweighs investments in Layer 1. The distinction between tens of millions and billions of {dollars} is the primary cause for Ethereum’s departure from Layer 1 scaling, a improvement that needs to be anticipated in any house. system scaling.

The central problem is that Ethereum has gone astray, leading to an uncommon incentive construction. Builders, influencers, and leaders are compelled to make larger short-term income by adhering to Layer 2 tales whereas supporting Layer 1 capacity-limiting tales.

This battle of curiosity creates a transparent battle between the long-term success of the Ethereum community and the quick pursuits of Layer 2.

Bons steered that Ethereum ought to contemplate returning to layer 1 scaling by adopting rollup or shard chains. Moreover, he emphasised the continued curiosity of Ethereum builders within the ZK EVM (Zero-Data Ethereum Digital Machine), which has the potential to scale as much as Layer 1. Nonetheless, its improvement remains to be in its early levels and isn’t thought-about possible.

What is required is on-chain governance that directs funds from block rewards to a decentralized treasury. This strategy establishes a layer 1-centric funding supply that may compete with competing pursuits and is validated by established public blockchains reminiscent of XTZ, DASH and DCR.

The challenges going through Ethereum spotlight the necessity for a strategic alignment of incentives to prioritize layer 1 scaling. Because the ecosystem continues to develop, there have to be a stability between short-term features and long-term sustainability.

Bonds’ suggestions make clear potential options and emphasize the significance of addressing these points in a well timed method.