Vitalik’s Ultimatum to L2s
Level Up to Stage 1 L2 or Get Left Behind - Vitalik's Call for Decentralization
Ethereum co-founder Vitalik Buterin has sent a clear message: starting in 2025, he will only publicly acknowledge Layer 2 (L2) projects that have reached "Stage 1" decentralization. But what does this mean, and why should developers and users alike take note?
In this issue💯📩
🎯 Vitalik’s L2s Stage 1 Ultimatum
🎯 On Air → Interesting podcasts episode to listen to🎧
🚨 Action Zone/Quick Links 🔗⚡
What is Stage 1?
Vitalik’s Stage 1 standard requires Layer 2 rollups to achieve a milestone that ensures true decentralization and security. To meet this requirement, L2 projects must have:
🎯 75% Governance Consensus: For any major decision—like overriding proof systems—a rollup must secure 75% approval from a decentralized council. This prevents a single entity from controlling key decisions, ensuring a broad base of agreement. It’s designed to avoid scenarios where just one or a few players could compromise the integrity of the entire network.
🎯 26% External Oversight: A minimum of 26% of council members must be independent from the core rollup team. This outside perspective is vital for maintaining balance and objectivity, as it prevents the core team from having unchecked power. External members act as impartial guardians, ensuring that no single group has too much influence over the network’s governance. So, if your rollup team still holds all the power—uh oh, you're not ready yet! 👀
Vitalik’s got no time for what he calls "glorified multisigs" anymore. Those centralized setups? They're so last year. In 2025, it’s all about cryptographic trust, baby. Rollups need to be built on solid, decentralized frameworks that ensure security and scale as Ethereum evolves. Think of it as the Ethereum ecosystem shedding its training wheels—and if your L2 isn’t ready to keep up, it's trash day🚮
Why Should You Care?
For L2 Builders:
Relevance: If your L2 project doesn’t reach Stage 1 by 2025, it risks falling off the radar of major influencers and developers in the space. With ZK rollups rapidly advancing, you’ll need to act fast to stay competitive.
Decentralization: Building robust, decentralized governance frameworks is no longer optional—it’s essential. Ensuring that 75% of your council can make key decisions, with 26% external members, will demonstrate the legitimacy and security of your rollup
Security: The shift toward cryptographic trust means that your project will need more than technical performance to gain adoption. Users and developers will prioritize decentralized, secure L2 solutions over centralized alternatives
For Users:
Security and Trust: Stage 1 projects are far more secure than centralized L2s, where control rests in the hands of a few. Stage 1 L2s ensure decentralized governance, meaning less risk of hacks, fraud, or mismanagement. Trust is built on cryptographic proof rather than authority
Reliability: Choosing L2s that meet Stage 1 requirements means aligning with projects that have stronger foundations, offering better protection for your funds and transactions. The focus on decentralization ensures fewer points of failure and greater stability over time.
Long-Term Safety: As the Ethereum ecosystem evolves, only the most secure and decentralized L2s will thrive. By aligning with Stage 1 projects, users can future-proof their assets, knowing that these rollups meet the rigorous standards necessary for long-term success.
Vitalik has valid concerns
Vitalik Buterin’s concerns about the decentralization of Layer 2 (L2) solutions are well-founded when you observe the current state of L2s on L2Beat(74 L2s being tracked). Majority L2s, despite having high transaction throughput, still rely on centralized control mechanisms. This reliance on centralized control leaves these systems vulnerable to governance risks and undermines Ethereum's decentralized vision.
We have shared links to more resources around the various stages of L2s in the Action Zone/Quick Links section. Check them out if you want to learn more about L2s stages.
🎯 On Air → The Sovereign Frontier podcast🎧
The Sovereign Frontier Podcast has been on tier recently. Here are some quick updates for you in case you haven’t been following.
➡️ It’s fully onchain, you can listen and mint directly on Zora. Click to link to check it out
➡️ You can Watch all episodes on Youtube on our new channel. Sovereign Frontier Youtube
⬇️ Enjoy and remember to subscribe, like and share.
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https://www.youtube.com/@SovereignFrontier
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https://www.youtube.com/@SovereignFrontier
🚨 Action Zone/Quick Links 🔗⚡
✅ Introducing Stages — a framework to evaluate rollups maturity
✅ Stages update: Security Council requirements
And that’s all for today frens. Thank you for reading. Stay safe and catch you on the next one. Peace!