Introduction
In an exciting move to enhance the Ethereum blockchain, a collective of developers has rolled out two ambitious initiatives aimed at boosting scalability and interoperability while adhering firmly to the network’s core principles of decentralization and neutrality.
Ethereum R1
The first of these projects is Ethereum R1, a groundbreaking layer-2 rollup that forgoes tokens to maintain Ethereum’s commitment to decentralized governance without succumbing to centralized control.
Unveiled on May 1, Ethereum R1 represents a reaction against the prevailing trends in layer-2 (L2) solutions, particularly the increased influence of venture capital and the common integration of native tokens. As Ethereum faces significant challenges with dwindling base layer revenues and an explosion of L2 solutions, Ethereum R1 aims to serve as a “credible neutral” option. The initiative comes on the heels of the Dencun upgrade in March 2024, which significantly reduced transaction costs on Ethereum L2s.
Critics have expressed concern that while this upgrade improved user affordability, it led to a dramatic 99% drop in Ethereum’s base layer revenue by the end of Q1 2025, raising questions about the economic viability of Ethereum’s foundational layer.
Developers of Ethereum R1 have taken a firm stance against integrated governance tokens and complex economic mechanisms which, they argue, have shifted many L2s closer to independent blockchains rather than serving purely as Ethereum scaling solutions. By declining venture capital funding and relying solely on community contributions, the Ethereum R1 team asserts that their solution adheres strictly to principles of decentralization, censorship resistance, and neutrality — fundamental ideals that many believe have been compromised amongst other L2 solutions in recent times.
New Token Standards: ERC-7828 and ERC-7930
Contrasting the Ethereum R1 initiative is the proposed introduction of standards ERC-7828 and ERC-7930, aimed at enhancing user experience across Ethereum’s expanding ecosystem. As the blockchain landscape increasingly diversifies, these standards seek to provide clarity and consistency in how various decentralized applications (dApps) and wallets interpret addresses.
Currently, users often encounter inconsistency when interacting with different L2 platforms like Optimism and Arbitrum due to varied interpretations of Ethereum-compatible addresses. The new ERC standards aim to create a dual addressing system, with ERC-7930 designed for machines and ERC-7828 aimed at human users, thereby simplifying interactions and minimizing transaction errors.
Community Engagement and Future Dialogue
As the Ethereum community grapples with the duality of achieving scalability through L2s while preserving the integrity of its main layer, the discourse surrounding these developments is vibrant and polarized. Supporters of Ethereum R1 view its emergence as a crucial counterbalance to the trend of governance centralization, while proponents of the new standards see an opportunity to enhance usability and ensure smoother interactions within the Ethereum ecosystem.
Currently, dialogue within the community is active and ongoing, with developers being urged to provide feedback on the proposed ERC standards. Collaborating closely with major players in decentralized finance (DeFi), the request reflects the urgency and importance of these developments in navigating the complexities of Ethereum’s multi-chain future.
