Ethereum's Investment Problem: Hasu Challenges Conventional Wisdom on Inflation
Hasu, Strategic Head of Flashbots, has sparked debate in the Ethereum community by stating that excessive ETH issuance is not the primary issue facing the network. He claims that insufficient investment in ecosystem projects like Lido and Aave is the main problem.
Ecosystem projects collectively fund client teams, various Ethereum foundation derivative projects, and DeFi development, which reduces inflation. However, Hasu argues that reducing inflation will inevitably suppress investment and lead to a decline in the research community's ability to predict second-order effects.
Funds flow from passive holders to ecosystem construction projects through protocol fees, motivated by the need to maintain ongoing investment in clients and DeFi. Similar mechanisms can be seen in other public chains that use staking or protocol revenue to support development.