Vitalik Buterin Proposes L1 Gas Limit Increase to Bolster L2 Protocols Amidst Ethereum Turmoil

Ethereum co-founder Vitalik Buterin has proposed increasing the gas limits on Layer 1 (L1) to enhance the functionality of Layer 2 (L2) protocols. This proposal comes amidst a period of turmoil for Ethereum, with leadership challenges and community pressure raising questions about its future.

Buterin, in a recent blog post, discussed the need to deal with bad actors on multiple levels, suggesting the quarantine of sketchy ERC-20 tokens and allowing users to mass exit an L2 project. He argued that even in a world where most usage and applications are on L2, scaling L1 significantly has long-term value, as it enables simpler and more secure patterns of application development.

Gas limits have been a crucial component of Ethereum's ecosystem, and Buterin has supported increases for months. Last October, he released a roadmap describing "The Surge," a massive L2 expansion. This initial document barely mentioned gas limits. Months later, he refined this proposal, acknowledging gas more directly and outlining how increased L1 gas limits would help L2 functions.

Buterin envisions L2 protocols as the blockchain's real future, but they're all built on top of L1. Higher gas limits would give the ecosystem more counter-measures against bad actors, alongside other advantages. L1 is more decentralized than L2, and higher resources would allow users more flexibility to quickly divest from sketchy protocols. Buterin is explicitly preparing for a scenario where over 100 million users would be able to safely exit a protocol en masse. Hostile ERC-20 tokens are also a security concern, more easily quarantined with a strong L1.

Buterin described several other use cases that could benefit from higher L1 gas limits, such as wallet operations and proof submissions. Despite all these arguments, it's currently unclear whether his proposals will catch on. Buterin defends that 10x L1 gas limits would benefit Ethereum over the next two years, in a moment when the chain is facing hard, pressing challenges.

This proposal shows Buterin's long-term commitment to and confidence in Ethereum. He isn't alone in this faith; despite falling prices, investors are buying the dip in droves. Ultimately, moments of crisis have not disrupted Buterin's ability to plan Ethereum's future, even years down the line.