The Core Argument: Why Ethereum's L1 Fees Must Remain Affordable

Ethereum co-founder Joseph Lubin recently articulated a clear stance on network economics: fees on the Ethereum mainnet (Layer 1) should be kept low. He frames this not as a temporary concession, but as a fundamental strategic imperative for the ecosystem's sustainable, long-term growth.

The Strategic Imperative of Low Base-Layer Costs

Lubin's argument addresses a critical tension: high L1 fees stifle innovation and adoption. A predictable, low-cost foundational layer provides stability for developers, enterprises, and users, fostering an environment ripe for experimentation and commercial deployment. It's analogous to infrastructure development—prohibitively high tolls on a core highway system would limit both traffic and the economic activity it enables.

The Forecast: An Onslaught of Enterprise Adoption

Building on this premise of affordability, Lubin outlines a vision for the next 2-3 years. He anticipates tens of thousands of enterprises will conduct business not just on the public Ethereum mainnet (L1), but more broadly across its Layer 2 scaling solutions and private, permissioned EVM-based chains. This multi-layered, diversified adoption would elevate Ethereum from a "financial settlement layer" toward a "global business infrastructure."

The Value Accrual Shift: From Fees to Asset Appreciation

Does prioritizing low fees undermine network value? Lubin suggests the opposite. He posits that value will accrue through a larger economic flywheel:

  • Activity-Driven Revenue: Massive enterprise-scale usage will generate exponentially greater network activity. Even with modest individual L1 fees, the aggregate revenue will be substantial.
  • Scarcity Through Lock-up： Ongoing ETH staking and locking across various mechanisms (like collateral in DeFi) will steadily reduce the circulating supply.
  • Deflationary Pressure Enhances Value： Under the "ultrasound money" mechanism, net ETH burn will persist. This deflationary pressure, combined with a shrinking supply, will underpin ETH's long-term value from a fundamental perspective.

In essence, Lubin's vision is to maximize network effects and adoption by minimizing barriers to entry (low fees), ultimately capturing value through the asset's own growing scarcity and utility, rather than relying on high base-layer usage costs. It's a classic "grow the pie first" approach to scaling.