Ethereum co-founder Joseph Lubin has emphasized that Ethereum Layer 1 fee revenue should stay low to encourage widespread growth. In a post on X, Lubin stated that over the next two to three years, tens of thousands of enterprises are expected to conduct business using Ethereum Layer 1, Layer 2, and private permissioned EVM networks such as the Besu chain.
Lubin suggested that as this enterprise adoption unfolds, the monetary premium of ETH is likely to rise significantly. While Layer 1 fee revenue from activity would increase notably, he argued that keeping base fees low is critical to sustaining the ecosystem’s expansion.
Additionally, Lubin noted that staking and other actions that lock up ETH would reduce circulating supply. Under what he called ‘ultrasound’ conditions, ETH’s net burn (where fees are burned and supply decreases) would further enhance the value of the asset, reinforcing the deflationary narrative.
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