Ethereum Approaches a Critical Milestone: What the Upcoming Upgrade Could Bring

The Ethereum ecosystem is heading toward one of its most significant updates in recent years. On December 3, the network is expected to activate the Fusaka upgrade — a change that reshapes the economic relationship between Ethereum’s main layer (L1) and the rapidly expanding layer-two networks (L2), including Arbitrum, Optimism, and Base. Fusaka implements the proposal known as EIP-7918, designed to address a long-standing issue: L2 networks have processed billions of dollars in transactions, yet have contributed almost nothing to Ethereum’s burn mechanism. They benefited from L1 security without paying a meaningful base fee to L1, which sparked debate across the developer and investor communities.

What Fusaka Changes Until now, Ethereum’s L1 has not charged L2 networks any base fees. Fusaka introduces a new model that directly ties L2 costs to the real execution burden their transactions impose on the main chain. This brings a more transparent and predictable fee structure and prevents users from facing sudden spikes in transaction costs during periods of high congestion. With the upgrade in place, L2 networks will begin paying Ethereum an actual base fee that feeds directly into ETH’s burn mechanism. At first, the burn rate is expected to be small. Experts, however, anticipate a gradual and steady increase that could eventually lead to millions of dollars’ worth of ETH being burned, strengthening Ethereum’s long-term deflationary profile. Only here are short bullet points, as requested: L2 networks will now pay a mandatory base fee to EthereumFees will be tied to the real computational load on L1The mechanism makes L2 pricing more transparent and stable

Why This Matters for ETH By integrating L2 economic activity into the ETH burn system, Ethereum creates a unified structure where both layers contribute to reducing the overall supply. As L2 usage continues to expand, their transactions could become a major driver of long-term deflation. This supports the idea that Ethereum can maintain both scalability and economic sustainability without compromising its monetary design.

What to Expect in the Short Term The upgrade is expected to roll out smoothly. Over the next weeks, observers anticipate the first measurable L2 base-fee contributions, a slow increase in ETH burned, and a cautious market watching how the new mechanism impacts overall network costs and activity. The change arrives at a moment when L2 networks dominate throughput in the Ethereum ecosystem, making this integration a potentially transformative step.

#ETH , #Ethereum , #Altcoin , #Arbitrum , #Layer2

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“