Decentralized sequencers are just the beginning of Rollup Layer 2 realizing its full potential?
TechFlow Selected TechFlow Selected
Decentralized sequencers are just the beginning of Rollup Layer 2 realizing its full potential?
Let Layer2 truly become an "expansion" layer that brings new users and ecosystem vitality to the mainnet, rather than merely an ancillary option for Airdrop Hunters.
Navigating Web3 tides with focused insightsBy Haotian
Many believe @MetisDAO's decentralized sequencer is merely a "technological narrative" born from Rollup competition. After reading the compelling article by its Co-Founder @kevinliub, I realized it’s far more profound than that.
In fact, decentralized sequencers are just the beginning of unlocking Rollup Layer2’s full potential. The vision we all share—native Layer2 DeFi, explosive ecosystem growth—depends fundamentally on this foundation. Why? Let me explain my perspective.
1) Decentralized sequencers were initially a core narrative for nearly all Layer2 Rollups. However, some mainstream general-purpose Rollups like Optimism and zkSync have, for various reasons, stalled in their decentralization journey.
Take OP as an example: it already dominates market share, and its OP Stack strategy has been highly successful. At this stage, abruptly pushing forward with a decentralized sequencer could introduce potential risks and challenges to the broader Layer2 ecosystem—such as MEV extraction and node malfeasance. Thus, pausing the decentralization narrative under the banner of "optimism" is understandable. In contrast, Metis, as an emerging challenger in the Layer2 space, doesn’t carry the same ecological baggage as Optimism. Starting from zero, it can build decentralization into its DNA from day one, laying the groundwork for future ecosystem development.
2) Decentralizing the sequencer is just the appetizer—the main course is the decentralized construction of tokenomics. Simply put, by assigning fundamental utility to the Layer2 token—such as serving as the base gas fee asset—it enables the Layer2 token to play a vital role throughout the entire lifecycle: incentivizing decentralized sequencer participation, empowering ecosystem development, and forming the foundation of native Layer2 DeFi.
While using ETH as the Layer2 gas token may seem more politically orthodox, doing so reduces the Layer2 token to purely a governance instrument. It fails to generate real economic value or sustainably reinforce the token’s own utility. Governance and voting alone simply cannot meet expectations for Layer2 token value.
Metis’ decision two years ago to use $Metis as the gas token—a move then seen as heretical—was in fact a long-term strategic vision for Layer2 economic design. For instance, critics often point out the lack of native DeFi on Layer2s. If a new chain only circulates wrapped versions of mainnet tokens, it benefits only from spillover liquidity effects, missing the explosive momentum that true native DeFi can generate.
3) Don’t assume building a decentralized sequencer and adopting a native gas token on Layer2 is easy. On one hand, it introduces MEV challenges. When sequencers are centralized, MEV opportunities are minimal. But once a decentralized base layer is established, MEV becomes inevitable. Effectively managing this is a major challenge—requiring incentive mechanisms akin to Ethereum’s MEV-Boost and MEV Router, while simultaneously mitigating MEV’s negative impacts on the Layer2 ecosystem.
On the other hand, turning the Layer2 token into a utility asset brings direct pressure on downstream ecosystem absorption. Just as Ethereum’s DeFi has evolved from Staking to Restaking, the rise of a robust DeFi ecosystem hinges on Staking. It’s crucial to ensure that incentivized sequencer nodes and grant-funded projects treat their earned tokens not as assets to dump, but as capital to bootstrap new native DeFi innovations—actively co-building and expanding the pie together.
If you closely examine the Metis ecosystem, you’ll notice emerging projects like @TheHerculesDEX building innovative derivatives DEXs, and @ENKIProtocol developing LSD solutions. Though they appear as fresh faces, for a Layer2 platform with a solid foundational token, these DeFi infrastructures could be pivotal in unlocking native Layer2 DeFi growth. And these are just the beginning—many more promising projects will inevitably emerge.
In summary, decentralizing the sequencer and distributing power is merely the starting point. The real challenge lies in harmonizing the interests of all stakeholders within the ecosystem, designing incentives that drive active contribution over passive speculation, and leveraging the native token to build a resilient, sustainable Layer2 DeFi economy.
The goal is to make Layer2 a true expansion layer—one that brings fresh users and vibrant ecosystems to the mainnet, rather than being just another option for airdrop hunters.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
Haotian | CryptoInsight
