TLDR Crypto · GUIDES & TUTORIALS

TOKEN

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Summary from the TLDR Crypto newsletter

This thread cautions against using a rollup protocol’s native token for gas fees. The process risks creating no net new token demand as users sell the tokens to cover transaction costs, potentially leading to the protocol subsidizing rollup usage. Additionally, it can create issues for interoperability, complicate users’ token inventories, and add user-experience hurdles. The thread goes on to suggest alternatives like buybacks with excess sequencer revenues for more sustainable demand and stronger incentive alignment.