Based on community members’ thoughts and updated with our own ideas
L2 is surely moving the game forward in mile steps, though there are loads of discussions happening in crypto SubReddits, Discord servers, forums and their participants doubt that L2 nets should have their own tokens, not using the base blockchains’ cryptocurrency.
The main argument of such point is usually the rivalry between the base blockchain coin and the L2 system coin. However, L2 and L1 are only connected with their algorithms and the demand of both is defined separately. As an example, an L2 coin, based on a well-known chain gets loyalty from the community because of their confidence in base chain’s security, scalability and decentralisation, while the L2 coin gives commission royalties to the base chain and eventually both systems profit.
L2 allows us to execute several operations off-chain, which makes the gas fees of such operations lower (you can read more about the concept of L2 in our themed article). Less taxes open the possibilities of more convenient airdrops without the need to host thousands of user applications on-chain. They also make community engagement much easier by letting users interact with the project, not needing to pay any fees for hosting their actions on-chain. Those two things also attract lots of community attention to base chains.
Another opinion says that L2 chains can combine multiple transactions into bigger pools, paying less transaction fees to the base chain and proceeding in base chain’s token value loss. That’s terribly wrong!
When an L2 net is growing and developing new applications it also attracts users and investments to the base chain. When the quantity of ETH assets rises, that makes the average price of a block space rise too. Keep in mind that ETH has a constant number of reserve blocks because of it’s low scalability, so the prices for gas and overall taxes rise consequently.
The possibility to lower the base chain transaction commission after the launch can help an L2 grow multiple apps, that will bring times more investments to the base chain, than high launch fees would.
Third argument is the users’ concern about flooding the market with low quality projects as it has been with NFT by autumn 2021 and the ICO boom, when smart-contracts were introduced.
And that indeed could be so, unless investors start filtrating the projects. It has always been so: some tokens only serve a sponsorship purpose and some really do influence the project and give their holders privileges over regular users. Of course, the first category doesn’t have any resale value, still thousands of people forget about the token’s usability and only focus on project’s idea.
One of Reddit’s users suggested Ethereum to help projects, they host officially, with money grants and promotion. That way founders don’t need venture capital help and can dedicate 100% of their attention to developing the project. The problem of investment search only coins will be gone too.
Considering Ethereum’s community slow development in the last couple months, L2 might be the saviour of the net, we all love. To do that L2 projects have to be inspected and promoted, using the same advertisement patterns, as chains like Avalanche, Polygon and Fantom.
