The Ethereum ecosystem is currently undergoing a fundamental re-evaluation of its Layer 2 (L2) strategy, moving beyond the initial "rollup-centric roadmap." Driven by a significantly cheaper Ethereum mainnet (L1) and slower-than-anticipated decentralization of rollups, the very definition and purpose of L2s are being rewritten. This shift, highlighted by Vitalik Buterin, acknowledges that the original vision of L2s as near-identical "branded shards" is no longer viable, paving the way for a more diverse and specialized L2 landscape.
Reshaping the Layer-2 Landscape
The premise for the original rollup-centric roadmap was a costly and capacity-constrained Ethereum L1. However, L1 transaction costs have dramatically decreased, and its execution capacity has expanded, weakening the foundational assumption that L1 cannot scale for most users. Concurrently, the journey towards full L2 decentralization has been slow. L2BEAT's "Stages" framework reveals that the vast majority of value locked in L2s (over 90%) resides in Stage 1 or Stage 0 rollups, which still rely on meaningful trust assumptions and discretionary governance for critical safety properties. Stage 2, representing "no training wheels" with code-enforced security, remains elusive for all but a tiny fraction of projects. This disparity underscores that many prominent rollups retain significant control over their upgrade mechanisms, a reality some openly admit may not change due to technical or regulatory considerations.
A Spectrum of Specialization, Not Clones
In response to these evolving realities, Ethereum is moving towards a framework where L2s are viewed as a diverse spectrum rather than homogeneous extensions. The new paradigm sets a clear minimum bar: any L2 handling ETH or Ethereum-issued assets must achieve at least Stage 1 decentralization. Beyond this, L2s are encouraged to differentiate by excelling in areas other than merely offering a "cheap EVM." This leads to three emerging categories of rollups:
- Stage 2-Chasing Settlement Rollups: Projects dedicated to maximizing Ethereum security inheritance through code-enforced guarantees and minimal discretionary governance.
- Regulated/Controlled Execution Environments: L2s optimized for compliance, specific institutional requirements, or permissioning, which may intentionally remain at Stage 1 and market their control as a feature.
- Specialized Chains: Rollups focused on niche use cases like privacy, ultra-low latency, app-specific execution, or non-financial applications (e.g., social, identity). This re-tiering shifts the burden to users to understand explicit security guarantees and for builders to innovate beyond commoditized "cheap EVM" solutions, focusing instead on unique value propositions. The ecosystem is large enough to support this diverse array, moving away from the assumption that all L2s serve the same function.
