THE ECONOMICS OF L3S

Summary from the TLDR Crypto newsletter

L3s struggle to break even unless they have 50M+ monthly transactions or fees no more than 3x cheaper than L2s. Their primary use case is as an economic bootstrapping tool for onchain games and unique experiences, though they may be running at a loss for their developers. Applications retain most of the benefits of L3s, but priority fees and native gas tokens could introduce more value to the chain.