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Correct, everything else that gets mentioned is a symptom of haziness around L1 value accrual in a rollup-centric roadmap There are 2 value accrual paths that often get discussed - cash flows or commodity/monetary value. Where the transactions occur impacts how both forms of value flow back to the L1 Transaction happens on L1 - L1 captures all REV (fees/tips) - L1 asset is used as money to pay for transaction The strongest form of value accrual on a per transaction basis. Transaction happens on L2 - L1 only captures DA/settlement fees, foregoing all fees for priority access to state. These fees are >95% of total fees on Solana and Base!! - L1 asset is still used as money to pay for transaction This clearly still drives value back to the L1, but its impossible for me to think this is >= the previous scenario if the activity could have existed on the L1 instead. The outcome is weaker for the L1 until it hits physics-breaking scale such that you cannot design a system to meet the demand or perform the required computation. For example, if a product could not exist on the L1 and instead becomes an L2, then that is net new demand creating value for the L1. Transaction happens on L2 paid in USDC - L1 only captures DA/settlement fees, foregoing all fees for priority access to state. These fees are >95% of total fees on Solana and Base!! - The user is no longer aware the L1 asset even exists. The swap from USDC to the L1 asset still occurs, so there is still programmatic buy pressure and use of the L1 asset that drives some value. I struggle to see how an asset forms a monetary premium if the users are no longer aware it even exists. Who is using it as money at that point? Again, I understand the conversion still happens and this does drive value. However, this too seems like a clearly weaker value accrual mechanism than the alternative. Transaction happens on L1 paid in USDC - L1 captures all fees/mev - The user is no longer aware the L1 asset even exists. The swap from USDC to the L1 asset still occurs, so there is still programmatic buy pressure and use of the L1 asset that drives some value. L1s are of course not immune to account abstraction either. At least in this scenario, they directly accrue execution value This is not an Ethereum specific analysis. Any L1 that is explicitly optimizing for L2s will face this same issues, but the path dependence of when and how that occurs is extremely important. Push for it too early and you risk your value accrual. Too late and you fail to scale to meet demand and users flee for greener pastures But I do think Ethereum is currently under indexing on the importance of execution derived value. I am very much not in the camp that aggregate REV will round to zero in the long term. If the product is useful, if the contains in-demand state, there will be users willing to pay to interact with it. That's not to say the commodity value path isn't real. If an L1 grows so big that it is actively used in global trade, I am quite confident it will exhibit some sort of monetary premium. People will hoard it for reasons beyond its cash flows. But its diabolical to think any L1 asset today commands this premium. The only trade denominated in L1 assets today is profile picture NFT trading - that is an extremely uncompelling use case. This basically just TLDRs to: REV (fees+tips) matters

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