STOP BEING AN IDIOT ABOUT L1/L2S

Summary from the TLDR Crypto newsletter

There is no tangible end-user difference between L1s and L2s, as both require bootstrapped liquidity through stablecoins and non-native assets. L2s function as execution layers with trust-minimized bridges. They naturally integrate with L1s and other L2s despite concerns around liquidity fragmentation. Though L1s benefit from a token flywheel driving demand among MEV searchers and stakers, L2s need to rework their tokenomics to capture similar value and provide more than governance rights. L2 development must shift in operational mindset and token design to ensure robust economic incentives for holders.