Ethereum (ETH) co-founder Vitalik Buterin declared the original vision for Layer 2 rollups "no longer makes sense" in an X post Tuesday.
Buterin cited two factors: L2s progressed "far slower" toward decentralization than expected while Ethereum's base layer scaled independently.
The comments represent a significant reversal from the rollup-centric scaling plan he championed since 2021.
Only three major L2s - Arbitrum, OP Mainnet, and Base - reached Stage 1 decentralization by 2025. Most rollups remain at Stage 0 with centralized control mechanisms.
What Happened
Ethereum fees dropped as the network increased gas limits and improved data availability through upgrades like PeerDAS. L1 now handles increased capacity without relying on L2s as "branded shards" of the main chain.
Some L2s indicated they may never progress beyond Stage 1 due to regulatory requirements for ultimate control. Buterin acknowledged this approach serves certain customers but does not constitute "scaling Ethereum" as originally defined.
The shift comes after Ethereum Foundation shakeups in 2025 when competition from Solana's monolithic scaling intensified. Researchers refocused efforts on base layer improvements alongside L2 expansion.
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Why It Matters
Buterin now advocates L2s identify value-adds beyond scaling such as privacy features, application-specific efficiency, ultra-low latency, or non-financial use cases. He maintains L2s should reach Stage 1 minimum or acknowledge operating as separate L1s with bridges.
The proposal centers on a native rollup precompile that verifies ZK-EVM proofs as part of Ethereum's base layer. The precompile would auto-upgrade with Ethereum and receive hard-fork protection if bugs emerge.
This approach enables trustless interoperability and synchronous composability between L1 and L2s. Buterin framed the shift as acknowledging L2s exist on a spectrum rather than requiring uniform "branded shard" status.
The comments follow L2 total value locked reaching $47 billion by October 2025 from under $4 billion in 2023. Base emerged as the clear usage leader while most newer L2s collapsed after incentive programs ended.
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