EIP-1559: Ethereum from "World Computer" to "World Central Bank"
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EIP-1559: Ethereum from "World Computer" to "World Central Bank"
When Vitalik emphasized Ethereum's定位 as a "world ledger," most saw it as a new strategy, but in fact the transition was already completed with the launch of EIP-1559.
Navigating Web3 tides with focused insightsAuthor: Haotian
Many people regard Vitalik Buterin's emphasis on Ethereum as a "world ledger" as a completely new strategic shift. In reality, this transformation was already completed the moment EIP-1559 went live. The 50% dominance of stablecoins on Ethereum merely reinforces its positioning as a financial settlement layer. Let me explain in detail:
1) The core of EIP-1559 isn't about reducing gas fees—it fundamentally redefined Ethereum’s value capture mechanism, marking the end of Ethereum's reliance on transaction volume and gas consumption for value accrual.
Previously, all transactions (DeFi, NFTs, GameFi, etc.) crowded onto the mainnet, leading to massive ETH gas consumption. Data shows that in 2021, nearly thousands of ETH were burned daily on average. At that time, Ethereum’s mainnet was severely congested. Even Layer2 solutions had to join gas wars when submitting batch data to the mainnet, resulting in high and unpredictable costs.
EIP-1559 changed this game entirely: by introducing a predictable base fee mechanism, the cost for Layer2s to submit batches on mainnet became stable and controllable. This significantly lowered the operational barrier for Layer2s, enabling more of them to rely solely on Ethereum for final settlement.
On the surface, EIP-1559 made things easier for Layer2s. In reality, it transformed Ethereum’s value capture logic at a deeper level—shifting from a “consumption-based growth” model driven by high-frequency mainnet transactions to a “taxation-based growth” model driven by Layer2 settlement demands.
Think about it: before, users directly paid Ethereum mainnet for computational services—a buyer-seller relationship. Now, Layer2s earn user fees but must periodically “pay tribute” to the mainnet by submitting batches and burning ETH. It's a tributary relationship.
This is analogous to commercial banks handling daily operations, while interbank large-value settlements must be cleared through the central bank system. The central bank doesn’t serve retail users directly, yet every bank must “pay taxes” and submit to oversight by the central bank.
This is precisely what it means to be a “world ledger.”
2) According to DefiLlama, the total market cap of global stablecoins now exceeds $250 billion, with Ethereum capturing over 50% of that share—an proportion that has actually increased since EIP-1559 launched. Why is Ethereum so attractive to capital? The answer is simple: irreplaceable security premium.
Specifically, USDT has accumulated $62.99 billion on Ethereum, and USDC $38.15 billion. By contrast, Solana hosts only $10.7 billion in stablecoins, and BNB Chain just $10.4 billion—combined, less than a fraction of Ethereum’s total.
So why do stablecoin issuers choose Ethereum?
Certainly not because it’s cheap or fast, but purely due to the unmatched economic security provided by nearly $100 billion worth of staked ETH. The cost of attacking Ethereum is astronomically high—an essential consideration for institutions managing billions in assets.
With such massive stablecoin deposits, Ethereum has formed a self-reinforcing flywheel effect:
More stablecoins → deeper liquidity → more DeFi protocols choose Ethereum → greater demand for stablecoins → more capital inflows.
From this perspective, the large-scale concentration of stablecoins on Ethereum reflects a market-driven, real-world vote of confidence—a de facto validation of its role as the world ledger.
3) Once Ethereum positions itself as a “central bank-level” settlement layer, the entire ecosystem’s strategic division becomes clear: Base, Arbitrum, and Optimism handle high-frequency transactions, while Ethereum mainnet focuses exclusively on final settlement—efficient and clearly delineated. Every single settlement from Layer2 back to mainnet continues to burn ETH, accelerating this deflationary flywheel.
Now, this is where many Ethereum loyalists might feel uncomfortable. If this is true, why haven’t Layer2s contributed to Ethereum’s deflation, but instead turned into “vampires” draining Ethereum’s value?
The data is harsh: the era of Ethereum burning several thousand ETH per day is gone. Today, daily burn rates have drastically shrunk—sometimes falling below a few hundred ETH. Meanwhile, Arbitrum routinely processes millions of transactions daily; Base, fueled by Coinbase’s traffic, has become a super-profitable machine; Optimism is also raking in massive revenue.
What’s the problem? Users have migrated to Layer2s, leaving the mainnet a “ghost town.” Layer2s pocket millions in fees daily, but pay mere crumbs in “protection money” to the mainnet.
Yet, this issue does not undermine Ethereum’s established status as the world ledger. Massive stablecoin deposits, nearly $100 billion in security backing (28% of supply staked), and the largest DeFi ecosystem globally—all confirm that capital values Ethereum’s settlement authority far more than the transactional vibrancy of Layer2s.
Vitalik Buterin seems to have recognized this challenge and is now attempting to boost mainnet performance, aiming to prevent Layer2s from becoming a drag on Ethereum’s overarching world ledger vision.
But ultimately, the success or failure of Layer2s is largely irrelevant to Ethereum’s role as the world ledger.
Vitalik’s current emphasis on the “world ledger” narrative feels more like an official confirmation of a reality already set in motion. EIP-1559 was that historic turning point—the moment Ethereum ceased to be a “world computer” and became a “world central bank.”
In other words, if you believe the next wave of crypto value lies in the convergence between on-chain DeFi infrastructure and traditional finance (TradiFi), then Ethereum’s role as the “world central bank” is sufficient to secure its dominant position. Whether Layer2s thrive or not simply doesn’t matter.
Of course, if you still believe Ethereum can only rise when its Layer2 ecosystem becomes powerful, feel free to disregard this analysis. Never mind I said anything.
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Haotian | CryptoInsight
