Ethereum Proposes 100x Gas Limit Increase for 2000 TPS

Ethereum, the second-largest blockchain network by market capitalization, is poised for a significant upgrade that could dramatically enhance its transaction processing capacity. A new proposal introduced by Ethereum Foundation researcher Dankrad Feist aims to increase the network’s gas limit by 100 times over the next two years, potentially enabling the Ethereum mainnet to handle up to 2,000 transactions per second (TPS).

Feist’s proposal, known as Ethereum Improvement Proposal (EIP) 9698, outlines a “deterministic gas limit growth schedule” set to commence around June 1 at epoch 369017. This plan involves a gradual tenfold increase in the gas limit over approximately 164,250 epochs, or about two years, followed by a final tenfold increase. The current gas limit stands at 36 million, and Feist’s proposal suggests expanding this to 3.6 billion, allowing for roughly 6,000 transactions per block—a substantial jump from today’s capacity of up to 20 TPS during periods dominated by simple transactions.

Feist argues that this structured approach ensures a transparent and sustainable path for scaling, aligned with ongoing improvements in hardware and protocol efficiency. However, he acknowledges potential challenges, such as the strain on under-optimized nodes and longer block propagation times. Despite these concerns, he emphasizes that the gradual, epoch-based increases would give developers and node operators sufficient time to adjust.

EIP-9698 is part of Ethereum’s broader push to enhance base-layer scalability, following years of reliance on layer-2 solutions. Critics argue that this layer-2 strategy has fragmented the ecosystem, creating isolated chains and complicating user experience due to limited interoperability. Meanwhile, Ethereum developers are also preparing for the Fusaka hard fork, which could test a fourfold gas limit increase under EIP-9678, potentially launching in late 2025. Before that, the Pectra upgrade is scheduled to go live in May, marking another step in Ethereum’s ongoing evolution.

If implemented, this proposal could position Ethereum to better compete with high-throughput blockchains like Solana, which averages between 800 and 1,050 TPS, with a theoretical maximum of 65,000 TPS. This upgrade is seen as a significant step towards addressing some of the most pressing problems facing artificial intelligence, such as centralization, opaque algorithms, and growing privacy concerns. Ethereum’s integration with AI could potentially solve these issues, leveraging its trustless, programmable finance capabilities through DeFi and stablecoins.

However, there are concerns within the community about the rise of layer-2 scaling networks and unchecked token issuance. Some argue that these layer-2 networks are siphoning off value from Ethereum’s base layer while giving little back, and that excessive token creation is undermining Ether’s value. Despite these challenges, the proposed upgrade represents a significant effort to enhance Ethereum’s scalability and competitiveness in the rapidly evolving blockchain landscape.