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Copy-Paste L2s Are Hurting Ethereum’s Progress

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Copy-Paste L2s Are Hurting Ethereum’s Progress


Vitalik Buterin warns copy-paste Layer 2s and generic EVM chains are stalling Ethereum’s long-term scaling vision.

Ethereum co-founder Vitalik Buterin has said that many new Layer 2 (L2) networks are repeating shallow design patterns, and warned that generic EVM chains with optimistic bridges are holding back meaningful progress.

His comments extend the public debate over whether today’s L2 ecosystem still aligns with Ethereum’s original scaling goals.

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No More “Copypasta” EVM Chains

In a February 5 post on X, Buterin argued that comfort and familiarity, not technical necessity, are driving many L2 launches, leading to copy-paste designs that add little beyond surface-level Ethereum compatibility.

The developer drew a comparison between infrastructure choices and governance habits, writing that making yet another EVM chain and adding “an optimistic bridge to Ethereum with a one-week delay” has become routine in the same way forking Compound once dominated DAO governance.

“That’s something we’ve done far too much for far too long, because we got comfortable, and which has sapped our imagination and put us in a dead end,” Buterin wrote.

He was even more direct about alternative designs that drop Ethereum bridges entirely.

“If you make an EVM chain without an optimistic bridge to Ethereum, that’s even worse,” he said, adding, “We don’t friggin need more copypasta EVM chains, and we definitely don’t need even more L1s.”

Buterin insisted that Ethereum’s base layer is already scaling and will continue to add EVM block space through 2026, though not without limits. He noted that some workloads, such as AI-related applications, may still require lower latency or specialized execution environments. In his view, those needs should push developers toward genuinely new architectures rather than lightly modified replicas.

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Matching “Vibes” With Real Ethereum Connection

Buterin’s criticism builds on comments he made earlier, suggesting many L2s no longer meet the original definition of scaling Ethereum because they fail to fully inherit its security.

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He argued that Ethereum no longer needs L2s to act as branded shards, especially considering mainnet fees are falling and gas limits are rising.

In his latest post, the 32-year-old stressed that public positioning should reflect technical reality. “Vibes need to match substance,” he wrote, criticizing projects that market themselves as tightly connected to Ethereum while treating that link as an afterthought.

The blockchain’s co-founder outlined two models he considers reasonable. One is an app chain that depends deeply on Ethereum, such as prediction markets that settle and manage accounts on the L1 while handling execution on a rollup. The other is what he called “institutional L2s,” where systems like government registries publish cryptographic proofs on-chain for transparency, even if they are not trustless or credibly neutral.

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“If you’re the first thing, it’s valid and great to call yourself an Ethereum application,” Buterin said. “If you’re the second thing, then you’re not Ethereum… so you should just say those things directly.”

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Crypto World

RBA Projects $16.7B Annual Gain from RWA Tokenization

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RBA Projects $16.7B Annual Gain from RWA Tokenization

The Reserve Bank of Australia is putting its support behind the real-world asset tokenization sector, citing recent analysis that it could contribute 24 billion Australian dollars ($16.7 billion) to the economy per year.  

Australia’s central bank assistant governor Brad Jones shared findings from Project Acacia on Wednesday, commenting that tokenized finance and related infrastructure upgrades will be “revolutionary,” according to advocates. 

He said that potential gains for the Australian economy from RWA tokenization were on the order of $16.7 billion per year, “and larger still if new markets emerged.” 

“First, we no longer see the main question as whether tokenization has a future in Australia’s financial system, but rather, how.”

Global consulting firm McKinsey & Company has forecasted that the value of tokenized assets could hit nearly $2 trillion by 2030. The head of Australia’s securities regulator, Joe Longo, in November urged the country to “seize the opportunity” or be left behind. 

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Project Acacia is the RBA’s collaborative research project run with the Digital Finance Cooperative Research Centre and industry groups.

It was built on a previous central bank digital currency pilot and explored whether tokenized assets could improve the functioning of Australia’s wholesale financial markets.

New digital finance sandbox to be explored 

Jones said the RBA will partner with agencies and industry groups to explore a “new digital financial market infrastructure (DFMI) sandbox.”

He added that this could allow industry and policymakers to build on the learnings from Project Acacia.

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Related: Major Australian pension fund mulls crypto offerings amid growing demand

It could also “smooth the path to practical implementation by providing a safe space for the testing and scaling of tokenized money, assets, and new infrastructure in a longer-term, stage-gated environment,” he said, adding that it could be tied in with a CBDC. 

“The interaction of wholesale CBDC with bank deposit tokens and stablecoins, and the synchronisation of tokenized asset ledgers with RITS [Reserve Bank Information and Transfer System], will be particular areas of interest.” 

RWA onchain value surges 234% in a year

Jones concluded that ensuring Australia’s payments, monetary and financial infrastructure arrangements are “fit for purpose” in the digital age is a “strategic priority for the RBA.”

The total RWA market onchain value hit a record high of $27.5 billion last week, excluding stablecoins, according to RWA.xyz. The sector has seen huge growth, surging by 234% over the past 12 months despite the broader crypto asset bear market. 

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The RWA sector has seen explosive growth over the past year. Source: RWA.xyz 

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