Vitalik Buterin Argues for Higher ETH Gas Limit to Boost Censorship Resistance and Reduce Costs

Last week, Ethereum’s ability to process more transactions got a boost when validators decided to raise the gas limit for the first time since late 2021, and notably, the first time since the network’s Merge. Despite this increase, Vitalik Buterin believes that the ETH gas limit should be raised even more. He argues that a higher gas limit would better support transaction inclusion and the development of applications, especially when most of the activity is happening on Layer 2 solutions.

Ethereum’s Gas Limit Needs 10x Increase

Vitalik Buterin has suggested that Ethereum needs to significantly increase its Layer 1 (L1) gas capacity to better support transactions and application development as more activities shift to Layer 2 (L2) solutions. In a recent blog post, he proposed that expanding L1 capacity by about ten times would ensure that essential network functions are maintained even as applications move to L2.

By raising the gas limit, Ethereum could process more transactions and complex operations per block, which would also affect transaction fees.

Also read: Ethereum’s Pectra Upgrade Confirmed for April 8 – Here’s What to Expect

Vitalik Buterin argued for further raising Ethereum’s gas limit, even after it was recently increased from 30 million to 36 million. A higher gas limit means more transactions can fit into each block, but it also speeds up the growth of Ethereum’s data, making it harder to run a full node as time goes on.

If running a node becomes too resource-intensive, fewer people might choose to operate their own, which could lead to more reliance on centralized node providers and reduce Ethereum’s decentralization.

L1 to Act as Safety Net

Buterin highlighted the importance of L1 as a safety mechanism in case a major Layer 2 platform fails, noting that Ethereum’s current capacity might not be enough to manage mass withdrawals if a widely-used L2 collapses. He roughly calculated that, without improvements, Ethereum would need to scale by nearly 9 times to effectively handle large-scale exits.

Vitalik Buterin analyzed potential mass withdrawals from L2 back to Ethereum’s main chain (L1), finding that with current gas settings, millions could exit safely within a week to a month, depending on the system’s setup. He suggested optimizations that could reduce the gas required per exit, improving safety during network stress.

Also read: Ethereum Whale Sell-off 20,000 ETH, Traders’ Eyes on $2,200

He also touched on the risks associated with launching ERC20 tokens on L2, advocating for launches on L1 despite higher costs to mitigate governance risks.

Buterin also pointed out the challenges in moving assets like low-volume tokens and NFTs between Layer 2 platforms, which often require going through Layer 1 and can be costly with the current limits. He estimated that to reduce these costs to a reasonable level, Ethereum’s Layer 1 capacity would need to increase by about 5.5 times.