Ethereum News Today: CurveDAO Proposes Halting Ethereum L2 Expansion to Focus on Core Growth

A recent and unexpected proposal from Curve Finance's CurveDAO community has sparked considerable debate within the cryptocurrency sector. Phil_00Llama, a prominent CurveDAO member, has put forward a motion to pause the expansion of Curve Finance onto Ethereum Layer 2 (L2) networks. This move, if approved, would mark a notable shift in the project’s strategy and could set a precedent for similar decisions by other decentralized platforms [1].

The proposal comes after Aave co-founder Marc Zeller previously advocated for a halt to Aave's deployment on the Bitcoin Layer 2 network BOB. Phil_00Llama argues that L2s consume significant development resources with minimal returns, suggesting that developers would be better off focusing on the Ethereum mainnet or on improving Curve’s native stablecoin, scrvUSD. According to DeFiLlama data, Curve’s total locked value (TVL) is concentrated on the Ethereum mainnet, at approximately $2.3 billion, while L2 platforms like Arbitrum and Base hold less than $50 million combined [1].

Phil_00Llama highlights the inefficiency of L2 deployments, noting that these networks generate only around $1,500 in daily revenue, a figure that fails to justify the costs and effort required to maintain them. He emphasizes that halting L2 development would allow Curve to allocate resources more strategically and concentrate on areas with higher potential for impact. The proposal also reflects a growing skepticism toward Ethereum’s long-standing “rollup-centric roadmap,” which prioritizes L2 scalability solutions [1].

This development aligns with a broader trend in the crypto space where some developers and stakeholders are questioning the overreliance on L2 solutions and are instead advocating for renewed focus on Ethereum’s core Layer 1 infrastructure. With Curve operating across 25 different chains, the suggestion to curtail L2 expansion may signal a strategic pivot toward consolidating efforts on more productive and high-impact initiatives.

While the proposal is still under active discussion within the CurveDAO community, it has already ignited conversations about the future of decentralized finance (DeFi) governance and resource allocation. If implemented, the move would represent a significant and potentially influential shift, offering a new model for altcoin projects navigating the balance between scalability, efficiency, and sustainability.

The timing of the proposal is also noteworthy, as it arrives amid a broader resurgence in the crypto market. July 2025 has seen renewed optimism, with Bitcoin surging past $122,000 for the first time and Ethereum outperforming its peers. In this environment, innovative governance strategies and strategic resource reallocation are increasingly valued as ways to drive further adoption and value creation [2].

Source:

[1] An Unusual Proposal Has Been Put Forward for a Surprise Altcoin: If It Happens, It Will Be a First – https://coinmarketcap.com/community/articles/688dacd413c64465ecc43af2/

[2] July 2025 in Crypto: Prices Rally on US Regulatory Clarity – https://trakx.io/resources/insights/july-2025-in-crypto-prices-rally-on-us-regulatory-clarity-and-renewed-fiscal-fears/