@dazzle2
Current Layer 1 (L1) blockchain revenue models face sustainability challenges. Most rely on token issuance to reward validators, but this dilutes value over time, as seen with Solana’s $756 million loss in 2022 despite $12 million in revenue. Bitcoin’s transaction fees cover only ~10% of miner rewards, raising concerns as block rewards halve. Ethereum, post-proof-of-stake, burns fees, yielding $623 million in 2023, but scalability limits fee growth. High security costs and low fee revenue strain profitability, pushing reliance on subsidies or inflation. Networks like Humanode show promise with cost-based fees, yet unproven long-term. Without exponential transaction growth or reduced issuance, many L1s struggle to balance security and economic viability, suggesting current models are not fully sustainable.
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