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Is the gas fee really as low as possible?

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High Gas can lead to a bad user experience, but it can also bring a sexy price-earnings ratio to Ethereum.

Original title: "How high do we want gas fees to be on Ethereum?"

Original author: mhonkasalo

Original compilation: Jack(0x137), BlockBeats

Holding ETH For investors, the high gas fee is a double-edged sword:

The advantage is: high gas fee means high price-earnings ratio, which can bring more benefits to pledgers and exert deflationary pressure on ETH supply .

The downside: the user experience will be terrible, because users will be forced to pay triple-digit Gas for Uniswap transactions.

The ideal goal of ETH is to avoid too expensive transaction fees while generating fees, which is It is difficult on a Layer 1 public chain (such as Ethereum) because once the block space is filled, the fee will increase at a rapid rate. Transactions are essentially free until the blocks are filled, and once they are filled, user bids quickly raise the fee for everyone.

In the current market, most people think that the demand for transactions has fallen off the cliff, because the current average Transaction costs are about 1/20 of what they were at the peak of the bull market. However, it would be incorrect to view this as a 95% drop in transaction demand.

Due to this dynamic in which fees can easily skyrocket, Ethereum does not incur significant fees ( And today’s other L1 public chains hardly even incur any fees).

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The best choice for Ethereum may be:

1. Layer 2 network, that is, L2 starts at L1 fees occupies a larger share. This would mean moving from the current 2% of gas consumed by L2 to the 25-30% range.

2. Due to whale activity, "legacy" applications on L1 are still accruing significant fees.

3. In terms of absolute transaction volume and number of users, L2 quickly surpasses Ethereum L1.

All of this is guaranteed even if demand spikes beyond what we've seen in previous bull markets , Ethereum fees will remain stable at 30-40 gwei and slightly deflationary. A little higher than that, and L2 probably “hasn’t done their job yet,” and we’ll see a massive increase in L1’s market share as it competes with Ethereum.

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In the dynamic just described, ETH stakers would earn a real rate of return of about 3-4%. It comes from:

1. Diluted non-collateralized ETH, 1% (this will decrease significantly to these levels over time).

2. MEV, 1% (could be higher).

3. Tips, 1-2%.

What I want to express is:

1. If the price-earnings ratio of ETH changes If it is too attractive, it is bearish on Ethereum, because it means that L2 has not yet let users get started.

2. L2 should always guarantee a "reasonable" gas level, but "legacy" application activity on L1 will keep ETH deflationary.

3. Due to these factors, the real rate of return for ETH stakers "shouldn't" exceed 3-4% for a long time. Ultimately, if this technology succeeds, demand will always outstrip blockspace supply.

Ideally, this dynamic will trend over time as follows:< /p>