Ethereum’s Layer 2 ecosystem is poised for growth in 2025, with governance models enhancing investor confidence. Arbitrum’s ARB token ($2 billion market cap) powers its DAO, enabling token holders to vote on protocol upgrades and ecosystem grants, fostering transparency. Its AnyTrust model reduces validator costs while maintaining security, appealing to governance-focused investors. Optimism’s Optimism Collective uses a bicameral system (Token House and Citizens’ House) to balance developer and community input, funding public goods with $250 million in OP token grants. This incentivizes sustainable growth but trails Arbitrum’s $5.87 billion TVL in market traction.