Why Layer 1 Blockchains Need to Get Real or Be Left Behind 🚀

by

Imagine explaining blockchain to your grandma-except your grandma is not interested in the blockchain; she’s more concerned whether her bread will toast itself. Mitchell Demeter, the newly appointed CEO of Sonic Labs (yes, the company with a name that sounds like a high-tech jazz band), is here to tell us that the old days of blockchain sprinting at top speed are long gone. Instead, the new game is about actually keeping users from wandering off to the next shiny thing. Spoiler alert: it’s about loyalty, not just speed and fees. 🎯

Layer 1 networks spent years competing on speed and fees. You’ve said that phase is over. What should chains be optimizing for now?

Mitchell Demeter: Back in the day-think of it as the Blockchain Stone Age-faster and cheaper was all that mattered. Ethereum was the slow, expensive kid on the block. But now, everyone’s got a cheap, fast toy, so the real challenge is: who can make people actually want to stay? Like a poorly written sitcom, if the show doesn’t hook you, you switch channels immediately.

Since stepping in as CEO two months ago, Demeter is keen to make Sonic stand out by tweaking protocols and biting into Ethereum Proposal sandwiches-like EIP-7903, which beefs up contract size limits. Because apparently, developers want to squish more into those smart contracts, making the chain more like a digital builder’s playground and less like a tiny shoebox.

What about fees? Is Sonic just handing out free lollipops?

Demeter: Pretty much. Right now, they’re giving 90% of fees back to builders and 10% to validators, like a Robin Hood with a blockchain twist. The goal? Make transactions so smooth, users aren’t even aware they’re on a chain-just like Venmo, but for crypto, without the awkward ‘sign here’ moments. But here’s the catch: if no one benefits from increased use, it’s like throwing money into a digital black hole.

So they’re tinkering with a model where token holders get a slice of the pie-around 15% for builders, 10% for validators, and the rest gets burned. Burning tokens sounds painful, but it’s actually an artful way to make tokens scarcer-like stock buybacks, but with a sprinkle of blockchain magic. ✨

While Sonic has been in the tech shop for years, they’re now thinking more about the business side of things-like renting out their tech to governments and banks, because even blockchains need to earn their keep.

And how does Sonic stack up against the Ethereum giant and its sidekick Layer 2s? Well, Demeter says Layer 2s are basically just clients for Ethereum-they rely on Ethereum’s backbone. Sonic, on the other hand, is happily independent, like that one friend who refuses to move out but keeps buying new furniture. 🛋️

Public goods? They’re exploring that too, but with a cautious step-funding the right projects, not just throwing cash at every shiny idea. Because, apparently, builders can be as transient as free samples at a supermarket.

First priorities for Demeter? Fixing tokenomics-making sure everyone from token holders to builders gets their fair share-and turning Sonic into a full-blown business, not just a techno-ninjas’ clubhouse. The game is shifting from ‘look how cool we are’ to ‘look how sustainable we are’. 🏢

In the grander scheme, Demeter senses we’re inching out of the crypto winter. Liquidity is returning, and folks are more serious about real businesses than just moonshots. Timing? Not perfect, but close enough for government work.

In essence, blockchain is evolving-no longer just a race to the bottom on speed, but a careful dance to keep people coming back, like a favorite TV series that’s finally got a plot worth sticking around for. And if Sonic’s approach works, maybe we’ll all be riding a smoother blockchain wave soon enough. 🌊

Read More

2025-11-28 00:24