- Feist proposes a 100x gas limit increase to enable more on-chain activity without solely relying on layer-2 networks.
- Fragmented liquidity on multiple chains could reduce Ethereum’s dominance in decentralized finance and smart contracts.
- Ethereum aims to scale while preserving decentralization, security, and verifiability amid pressure from faster ecosystems.
Dankrad Feist, a researcher with the Ethereum Foundation, has warned that Ethereum could become irrelevant within the next five to ten years if it does not alter its development course. Feist presented Ethereum Improvement Proposal 7938 containing a plan to boost the gas limit through gradual enhancement by 100 times during four years.
The adjustment in the Ethereum base layer seeks to dramatically enhance its processing capacity for block transactions.
Unconventional Proposal to Boost Transaction Capacity
Feist stressed that this unorthodox proposal comes from a necessity to protect Ethereum as a key component in the cryptocurrency market. He argued that layer-1 must support higher capacity directly rather than relying entirely on layer-2 solutions. According to Feist, scaling Ethereum’s base layer is essential to maintaining its central position in decentralized finance and blockchain activity.
The researcher noted that liquidity is becoming increasingly fragmented across multiple layer-2 networks. This trend, he believes, could weaken Ethereum’s standing against competing ecosystems if not addressed. If users and developers migrate to chains that offer more throughput and smoother experiences, Ethereum may no longer be the main hub of on-chain economic activity.
Censorship, Resistance, and Verifiability Remain Priorities
Despite the aggressive scale-up plan, Feist maintained that Ethereum could scale without compromising its core principles. He highlighted that increasing capacity should not come at the expense of censorship resistance or verifiability. Ensuring that the network remains open and secure for all users is still a top concern.
Matt Hougan, Chief Investment Officer at Bitwise, responded to the proposal by stating that Ethereum has recognized the urgency of its situation. He remarked that the network has stopped “digging” the hole it is in, though he remained uncertain about its ability to recover.
Adding to the debate, Cardano founder Charles Hoskinson predicted that Ethereum could follow the fate of Blackberry. He described layer-2 solutions as parasitic and believes they might contribute to Ethereum’s eventual decline if the base layer fails to evolve quickly.
