Tron founder Justin Sun proposed a four-part plan to strengthen ETHEREAM.
Sun’s proposal received a mixed reaction with concern that layer 2 solutions could be taxed.
Nevertheless, some have been positive about the practicality of Sun’s ideas, pointing out that certain elements may be worth considering.
Over the past few weeks, Ethereum’s leadership discourses have flooded crypto social media, forcing his work to Vitalik Buterin, the leading industry and co-founder of the Ether.
Criticism has been planted straight at the foot of the Ethereum Foundation, calling for current executive director Ayamiyaguchi to come aside.
Butarne vehemently opposed this but acknowledged the need for administrative reform.
Now Tron founder Justin Sun has added two cents to the debate with his radical plan to send coins to the moon with Ethereum ships right.
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Tron founders suggest reducing staking rewards and EF personnel
Sun’s Ethereum strategy ranges from four areas, revolving around overhauling blockchain supply and financial methodologies.
The first step is to “stop ETH sales immediately and optimize revenue.” (No, I don’t know why it wasn’t “quickly” capitalized either).
Ethereum is structured as inflation thanks to an unlimited supply of tokens. Therefore, if Ethereum Foundation (EF) sells from stocks above US$1 billion ($1.6 billion), downward price pressure is inevitable.
Instead, Sun suggests that the foundation retain its ETH and generates revenue through staking, lending and stubcoin borrowing. This is something the team is already considering.
Second, the founders of Tron believe that layer 2 projects need to be taxed by EF. Scaling solutions such as Base, Optimism, and Kinkai make layer 1 of Ethereum look somewhat redundant. It offers similar advantages, but is much cheaper.
By taxing them, Ethereum could theoretically gather a share of their profits and ensure the growth potential of ETH.
Sun ends his proposal by insisting on staking rewards, but the EF team needs to be scaled down to focus solely on layer 1 development.
It’s easy to criticize from afar (and fun too). Despite the clear shortcomings of the Ethereum Foundation, fixing things is probably not as easy as the four-stage plan for the Sun.
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Certainly, that’s what the crypto community discussed in response to his post.
In particular, people believe that taxing L2S will ultimately kill them. This may be good for Ethereum, but enforcing people to L1 with current capacity on the blockchain will only help to exacerbate congestion. Needless to say, L2S boasts important defi activities that can simply disappear when it becomes less viable.
That said, the specific basis of Sun’s plans may not be so strange and have some advantage.
