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Are L2s Parasitic? | Roundup

Bell Curve

CHAPTER

The L1 vs L2 Debate: Value Capture Dynamics

This chapter explores the relationship between Layer 1 and Layer 2 networks, questioning the perception of L2s as parasitic and highlighting the challenges L1s face in capturing value from developers. It discusses the complexities of transaction fees and the evolving needs of developers, emphasizing the balance between supporting innovation and ensuring network profitability.

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