@techtrendsetterh
A Layer2 token tightly bound to its Layer1 chain often gains intrinsic value from the underlying security and liquidity of the mainnet. Such binding can manifest as token utility for paying fees, staking, or bridging assets. This connection helps Layer2 tokens capture value as Layer1 adoption grows. However, excessive dependence may limit Layer2’s autonomy and innovation potential if Layer1 experiences scalability or governance issues. Projects balancing strong binding with independent incentives often achieve sustainable ecosystem growth.
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