Andre Cronje, founding father of Sonic Labs and known as “deFi Godfather”, has criticized Ethereum L2 options for his or her dealing with of earnings and potential misalignment with Ethereum’s decentralized ideas.
Be L2. Have centralized sequencer. Generate $120m in charges. Pay Ethereum $10m of that quantity for DA & safety. Dump $110m for revenue. Be “Ethereum aligned”.
I don’t perceive how ethereans persuade themselves with these psychological gymnastics.
L2s are why Ethereum is… pic.twitter.com/edOlPOsdah
— Andre Cronje (@AndreCronjeTech) February 8, 2025
“I don’t perceive how ethereans persuade themselves with these psychological gymnastics. L2s are why Ethereum is inflationary once more.” Cronje posted on X
Base, Coinbase’s Ethereum L2, responded to the criticism by means of its technique lead, Kabir.
“Base is and can proceed rising Ethereum. We’re investing all of our earnings and assets into doing this. Base and Coinbase maintain over 100,000 ETH—greater than $300 million—making it the biggest ETH holding of any public firm at the moment,” Kabir wrote.
This narrative simply isn’t true — listed here are the information:
Base is and can proceed rising Ethereum. We’re investing all of our earnings and assets into doing this and we’ve gone from zero to thousands and thousands of recent folks onchain in 1.5 years.
Base and Coinbase have and proceed to… pic.twitter.com/VR3BAAUhIc
— Kabir | kabir.base.eth (@kabir_base) February 9, 2025
The controversy facilities on two competing visions for Ethereum’s scalability.
Critics argue that L2s generate substantial income whereas returning solely a fraction to Ethereum for information availability and safety.
Proponents of decentralized scalability, together with Cronje, advocate for enhancing Ethereum’s base layer instantly utilizing options like Sonic to cut back dependency on exterior L2 suppliers.
Julio Moreno, head of analysis at CryptoQuant, famous that Ethereum’s provide has now exceeded pre-Merge ranges (September 2022), confirming the community’s return to inflation.
ETH provide is now greater than earlier than the Merge.
9 months in the past we revealed an evaluation on why this might be the case.Have a look. https://t.co/Q9Z9WFjZbs
— Julio Moreno (@jjcmoreno) February 7, 2025
To deal with the inefficiencies of Ethereum L2 options, Andre Cronje has proposed leveraging Sonic’s expertise to bypass the restrictions of centralized fashions.
