Ethereum has recently seen an increase in its gas limit, allowing it to process more transactions. However, Vitalik Buterin believes that the gas limit should be raised even more to better support transaction inclusion and application development, especially with the rise of Layer 2 solutions.
Ethereum’s Gas Limit Needs 10x Increase
Vitalik Buterin has suggested that Ethereum needs a significant increase in its Layer 1 gas capacity to support transactions and application development as more activities move to Layer 2 solutions. In a recent blog post, he proposed expanding the L1 capacity by about ten times to ensure essential network functions are maintained even as applications transition to L2.
By raising the gas limit, Ethereum could process more transactions and complex operations per block, impacting transaction fees as well.
Additionally, Buterin argued for further increasing Ethereum’s gas limit, despite the recent raise from 30 million to 36 million. While a higher gas limit allows more transactions per block, it also accelerates Ethereum’s data growth, potentially making it more challenging to run a full node over time.
Conclusion (as a table) pic.twitter.com/9fBXcXJWxb
— vitalik.eth (@VitalikButerin) February 14, 2025
If running a node becomes too resource-intensive, fewer individuals may choose to operate their own, leading to increased reliance on centralized node providers and decreased decentralization of Ethereum.
L1 to Act as Safety Net
Buterin emphasized the role of L1 as a safety mechanism in case a major Layer 2 platform experiences issues, noting that Ethereum’s current capacity may not be sufficient to handle mass withdrawals if a widely-used L2 system fails. He estimated that Ethereum would need to scale by nearly 9 times to effectively manage large-scale exits without improvements.
Buterin also analyzed potential mass withdrawals from L2 back to Ethereum’s main chain (L1), suggesting that with current gas settings, millions could safely exit within a week to a month, depending on the system’s configuration. He proposed optimizations to reduce the gas required per exit, enhancing safety during network stress.
He also discussed the risks associated with launching ERC20 tokens on L2, recommending launches on L1 despite higher costs to mitigate governance risks.
Buterin highlighted challenges in moving assets like low-volume tokens and NFTs between Layer 2 platforms, which often require passing through Layer 1 and can be costly under current limits. He estimated that to reduce these costs to a reasonable level, Ethereum’s Layer 1 capacity would need to increase by approximately 5.5 times.