A gaggle of builders throughout the Ethereum ecosystem, working independently of the Ethereum Basis, have introduced Ethereum R1 — a layer-2 (L2) scaling solution for the Ethereum community that doesn’t embrace a local token.
In response to the announcement, the undertaking depends totally on donations, doesn’t have enterprise funding, and doesn’t have any pre-mined token allocations or a governance token. The undertaking’s group wrote in a Might 1 X post:
“Normal-purpose L2s needs to be commodities — easy, replaceable, and free from centralized dependencies or dangerous governance. Ethereum R1 is our reply to that decision — the rollup grounded in credible neutrality, decentralization, and censorship resistance.”
“Most L2s right now are performing extra like new L1s than an Ethereum scaling solution — non-public allocations, opaque governance, and centralized management,” the builders continued.
The announcement factors to rising considerations throughout the Ethereum neighborhood concerning the present route of many layer-2 scaling options, which some view as probably misaligned with the pursuits of the bottom layer
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Ethereum’s Dencun upgrade in March 2024 considerably lowered charges for its layer-2 networks. By September, income on the Ethereum base layer collapsed by 99%.
Consequently, transaction prices on the Ethereum community base layer dropped to a five-year low of roughly $0.16 per transaction in April 2025, on account of a scarcity of demand for block area on the bottom layer.
Ethereum’s transaction charges are decided by demand and community site visitors — increased demand and community site visitors translate into increased charges for the bottom layer and extra income.
Whereas critics proceed to argue that this offers perverse incentives for layer-2 networks to develop on the expense of the bottom layer, protocols proceed to argue that Ethereum’s many layer-2 networks are a characteristic, not a bug.
Anurag Arjun, co-founder of the unified chain abstraction solution Avail, instructed Cointelegraph that Ethereum’s layer-2 strategy provides customers a nearly unlimited number of high-throughput chains to select from, versus the singular one-size-fits-all strategy employed by monolithic blockchain protocols.
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