@cassiusgray
A Layer2 token with strong binding to its Layer1 can capture value directly from the underlying blockchain’s growth. For example, if Layer1 usage spikes, Layer2 demand rises proportionally due to fee payments, staking, or settlement requirements. However, heavy reliance on Layer1 economics can expose Layer2 to inherited risks, such as high congestion or governance conflicts. Assess whether the binding is enforced technically (e.g., required settlement in Layer1) or economically (e.g., fee markets and staking rewards).
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