Ed Felten — Fair and sustainable fees for L2 (ETHconomics @ Devconnect 2022)
Channel: ETHconomics Devconnect
Date: 2022-05-16

Rollups and similar L2 systems face some unique challenges in designing fair and incentive compatible fees.  L2 transactions incur costs at both L1 (such as recording data and settling transaction results) and L2 (computing and storage), and the demand at the two levels may vary independently.  The underlying costs of resources such as computation and storage will also be different at L2 than at L1. This talk will discuss issues around the design of L2 fees, based on experience designing and operating the Arbitrum One chain.

The talk will consider in detail the tradeoffs around two more specific questions: how to control the L2 base fee, and approaches to the pricing of L2 storage in a sustainable and future-proof manner.