A pseudonymous analyst has started a modern narrative on Ethereum’s upcoming Fusaka upgrade, arguing that it could be the most favorable event ever for ETH as an asset, ultimately transforming Layer 2 networks into significant ETH burners.
On X, cryptocurrency expert Kira Sama framed Fusaka, scheduled for December 3, as a structural change to Ethereum’s fee economics. The core of the work is a single change: EIP-7918.
“In terms of price, the Ethereum Fusaka update on December 3 will be the most bullish update for eth ever, why? For one reason. ‘EIP 7918’,” Kira wrote, calling it “the next big catalyst for eth burning.”
Ethereum L2 will burn ETH
Kira’s argument is based on how Ethereum currently treats L2. Since the packet-centric roadmap took shape, Ethereum’s core layer has effectively subsidized L2 data availability. In his words: “for a long time, ETH L1 took zero base fees from L2, while L2 implementers made millions in profits. So L2 didn’t burn any significant ETH.” This subsidized system fueled L2’s explosive growth, but also circumscribed the degree to which L2 usage translates into ETH burning.
EIP-7918 aims to change this by more closely tying L2 data costs to mainline gas prices. Kira summarizes it this way: “L2 fees will be capped by fulfillment cost, which will help us discover L2 fee prices faster. It will also help maintain fees during spike periods, so L2 users won’t be immune to absurd transfer fees. Win-win.” In practice, this means that rollups will have to pay a non-trivial, protocol-enforced minimum in terms of what they pay Ethereum to send their batches.
Most importantly for ETH holders, these fees are paid in ETH and some of it is burned as part of the EIP-1559 mechanism. Kira argues that as L2 capacity scales, this will become the dominant driver of ETH burn dynamics: “They will simply pay their fair share of Ethereum L1 and burn significant eth. It will be slow and steady at first. This will ultimately result in millions of dollars of eth being burned over the long term, and L2 will be the main driver of eth deflation.”
The narrative becomes more aggressive as Kira extrapolates to corporate and institutional rollups. It lists a number of existing and predicted L2s and claims that “Coinbase database will burn eth, Robinhood’s L2 will burn eth, OpenAI’s Worlchain will burn eth, Sony’s Soneium will burn eth, Alibaba’s Jovay will burn eth, UAE ADI chain will burn eth, Kraken’s Ink will burn eth, Lighter will burn eth, Deutsche Bank’s Memento chain will burn eth, Arbitrum will burn eth etc., etc. Corporations will start smoking eth.”
Based on this, he expands his thesis to a broader, highly bullish vision: “Every company in the world will launch its own Layer 2. Every alt-L1 will become L2 and start burning Eth. Eth inflation will fall.” While these universal claims go far beyond what the update itself guarantees, they capture the heart of the bullish narrative: if sufficient economic activity moves to collateralized Ethereum L2s that must pay significant base fees, Ethereum will become the settlement and value capture layer under corporate and institutional chains.
Kira is clearly comparing Fusaka to the London strenuous fork that introduced EIP-1559 in 2021. “When Ethereum introduced the eip-1559 burnout in 2021, it sent the entire market higher,” he wrote. “This time, everyone will also be surprised. L2 is burning and coming. Bullish eth. Bullish L2.” For now, Kira has clearly formulated his conclusion: “December 3, tik-tok. Tikker to ETH.”
At the time of publication, ETH was trading at $3,022.
Featured image created with DALL.E, chart from TradingView.com
