INCENTIVIZING L2 DECENTRALIZATION

Summary from the TLDR Crypto newsletter

There is a lack of incentives for Layer 2s to continue decentralizing their operations. Centralization is great for product development and operations, allowing faster execution, more control over security, and quicker response to exploits in the form of chain freezes. Greater incentives are needed for L2s to upgrade to Stage 1 and 2 decentralization. Social pressure may not be sufficient to cause this transition.