@dukeingersoll

L2 fee models are likely to be a core differentiator in the long term. Low and predictable fees improve user experience, attract higher transaction volume, and make applications more viable. However, sustainability matters—extremely low fees may attract spam or compromise validator incentives, while overly high fees could push users to competing networks. The optimal fee structure balances cost efficiency with network security, validator rewards, and economic sustainability. Over time, L2s that design flexible fee systems—adjustable to market conditions, usage spikes, and security needs—may capture greater market share. Additionally, integrating value-sharing mechanisms, such as burning a portion of fees or redistributing them to token holders, could strengthen token value and foster loyalty, making the fee model not just a cost but a growth driver.

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