Justin Sun Proposes Heavy Tax on Ethereum's L2 Solutions

Justin Sun, the founder of TRON Foundation and advisor at HTX Global, has sparked a debate in the crypto community with his recent comments on Ethereum's Layer 2 (L2) ecosystem. In an interview with BlockBeats, Sun suggested that Ethereum is currently over-subsidizing L2 and proposed imposing a heavy tax on large L2 solutions like Base and Polygon.

Sun believes that the prosperity of the L2 ecosystem directly increases the value of Ethereum. However, he argues that Ethereum is currently providing too much support to L2, which may not be sustainable in the long run. He proposed raising the tax rate from the current 2% to 8%, which could generate an additional $1 billion in revenue per year for Ethereum without suppressing L2 development.

Sun further explained that while some subsidies can be provided for L2 solutions in their early stages of development, established large L2 solutions like Base and Polygon should be subject to heavier taxes. He compared this to national tax policies, where regular individuals may be tax-exempt or pay a lower tax rate, but super-rich individuals need to pay a higher tax rate.

The crypto community has been divided over Sun's proposal. Some argue that a higher tax rate could indeed provide Ethereum with a more stable income and help sustain the L2 ecosystem. Others, however, worry that a heavy tax on large L2 solutions could stifle innovation and discourage further development in the space.

As the debate continues, it remains to be seen whether Ethereum will adopt Sun's proposal. The future of Ethereum's L2 ecosystem and the potential impact of a higher tax rate on large L2 solutions will be closely watched by the crypto community in the coming months.