Ethereum has undergone a great transformation in the last four years, starting as a network capable of handling only 15 transactions per second, and evolving to a processing power of thousands, with transaction costs that decrease from $ 50 per exchange to only cents. The L2 and the Rollups have helped climb Ethereum without compromising their decentralized spirit. But this success has led to a new problem, one of fragmentation.
Today, Ethereum is one of the most widely adopted block chains, which consists of a network of more than 50 L2, each of which functions as its own isolated ecosystem. What this means for end users is to have to juggle with multiple networks, active bridges and navigate a maze of processes only to perform basic actions.
When reflecting the fragmented technological landscape, Ethereum’s financing panorama has become difficult to navigate for builders throughout the life cycle, staging innovation as projects fight to ensure sustainable funds.
To create a more efficient ecosystem, Ethereum needs to begin to adopt blockchain -based financing mechanisms that are better align with its complex nature, based on the community and experimental.
Traditional financing programs often focus on initial stage projects, neglecting the long -term needs of web3 builders. It may be misleading to observe the narratives of the cryptography market that dominate the panorama of the investment and assume a booming activity. Financial yields for many of these projects may not reach the short term, leaving builders fighting sustainable growth. Financing mechanisms should be able to support builders throughout the product life cycle trip.
Rewarding impact, no speculation
One of the most promising blockchain financing models is RETROPGF, which turns the traditional financing script by rewarding projects based on its impact proven instead of its speculative potential. This model is particularly suitable for the fragmented ecosystem of Ethereum, where public goods such as open source software, developer tools and interoperability solutions often fight to attract initial investments.
RETROPGF focuses on the measurable results of a project. Daming or taxpayers of the ecosystem accumulates and distributes them retroactively to projects that have demonstrated value. This process guarantees that the critical infrastructure, such as the bridges of the cross chain or the developer frames, receive the support you need at the right time.
This financing mechanism is preferred because it helps align incentives. Instead of competing for speculative investment, projects can focus on offering real value, knowing that their contributions will be recognized and rewarded. For a fragmented ecosystem such as Ethereum, RETROPGF offers a way to unify financing efforts and ensure that resources flow to the most shocking initiatives.
Amplifying community support
Another powerful tool in the blockchain financing tool kit is quadratic financing, a model that distributes capital according to the amplitude of community support instead of the size of individual contributions. This approach levels the playing field for smaller projects and base initiatives, which often struggle to compete with well -financed competitors in traditional financing models.
Quadratic financing works by matching small donations of a large number of followers with a larger group of funds, which reflects the collective intelligence of the community and ensuring that projects with generalized base support receive most of the funds.
When the value of public goods projects, such as government rights or income flows, founders can open their projects to a broader group of supporters with the help of fractional investment mechanisms. This creates a diverse and passionate investor base, democratizing access to capital and reducing the dependence of traditional financing sources.
For example, developers who build a cross -operability solution of cross chain could token the government rights of their project, allowing supporters to contribute microinversiones in exchange for participation in their success. This not only provides very necessary funds to the project, but also encourages a sense of property and alignment among its followers.
In a fragmented ecosystem like Ethereum, fractional investment can help close the gaps between chains encouraging collaboration and shared property. The projects that could otherwise operate in isolation can take advantage of a unified capital group, creating a more interconnected and resistant ecosystem.
Chain property
In the heart of these blockchain financing models is the concept of property in the chain. By tokenize their work and take advantage of the transparency of Blockchain, creators and builders can establish direct relationships with their supporters, eliminating intermediaries and ensuring that this value flows to those who believed in them from the beginning.
Transactions in the chain also make funds of funds visible and auditable, reducing fraud and promoting trust. This transparency is particularly important in a fragmented ecosystem such as Ethereum, where users and developers often fight to navigate for complex and opaque financing structures.
An important question to address is how to obtain funds for these X-L2 initiatives.
One strategy is to make the financing of the common goods of Ethereum a condition of being curled up in stage 1 or stage 2. These Rollups, once they have reached that level of decentralization, depend on a distributed community and tools for the government. Financing these common goods and tools is not only justified but necessary for its continuous growth.
An alternative would be to redirect the subsidies program of the Ethereum Foundation to solve this problem. The EF needs to better support the Cross-L2 experience and finance common goods to solve these challenges is key to doing so.
Ethereum’s fragmentation goes beyond technical challenges, it is a financing challenge above all others. When adopting blockchain financing models such as RETROPGF, quadratic financing and fractional investment, the ecosystem offers a way of aligning incentives, amplifying community support and democratizing access to capital, ensuring that resources flow to the projects that need them most.
