A pseudonymous analyst has set off a new narrative around Ethereumโs upcoming Fusaka upgrade, arguing it could be the most favorable event ever for ETH as an asset by finally turning Layer-2 networks into meaningful ETH burners.
On X, crypto pundit Kira Sama framed Fusaka, scheduled for December 3, as a structural shift in Ethereumโs fee economics. The core of the thesis is a single change: EIP-7918.
โPrice wise, Ethereum Fusaka upgrade on december 3rd, will be the most bullish upgrade for eth the asset ever, why? One reason. โEIP 7918โ,โ Kira wrote, calling it โthe next big catalyst for eth burn.โ
Ethereum L2 Will Burn ETH
Kiraโs argument rests on how Ethereum currently treats L2s. Since the rollup-centric roadmap took shape, Ethereumโs base layer has effectively subsidized L2 data availability. In his words, โfor a long time, ETH L1 charged zero base fees to L2s, while L2 deployers made millions of profits. So L2s havenโt burnt any meaningful eth.โ That subsidized regime has fueled explosive L2 growth but also limited how much L2 usage translates into ETH burn.
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EIP-7918 is designed to change that by tying L2 data costs more tightly to mainnet gas prices. Kira summarizes it as follows: โL2 fees will be bounded by the execution cost which will help us reach L2 fees price discovery faster. It also helps maintain the fees during spikes so that L2 users wonโt be rugged from absurd tx fees. Win-win.โ In practice, that means rollups will face a non-trivial, protocol-enforced minimum on what they pay Ethereum for posting their batches.
Crucially for ETH holders, those fees are paid in ETH and a portion is burned under the EIP-1559 mechanism. Kira argues that as L2 throughput scales, this will become a dominant driver of ETHโs burn dynamics: โThey will just pay their fair share to Ethereum L1 and burn meaningful eth. It will be slow and steady at the beginning. This will eventually result in burning millions of dollars of eth long term and L2s will be main driving force of making eth deflationary.โ
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The narrative becomes more aggressive when Kira extrapolates to corporate and institutional rollups. He lists a series of existing and anticipated L2s and claims that โCoinbaseโs base will burn eth, Robinhoodโs L2 will burn eth, OpenAIโs Worlchain will burn eth, Sonyโs Soneium will burn eth, Alibabaโs Jovay will burn eth, UAEโs ADI chain burn eth, Krakenโs Ink will burn eth, Lighter will burn eth, Deutsche Bankโs Memento chain will burn eth, Arbitrum will burn eth etc etc etc. Corporations will start burning eth.โ
From that, he extends the thesis to a broader, highly bullish vision: โEvery company in the world will launch their own layer 2. Every alt-L1 will become L2 and start burning eth. Eth inflation will shrink.โ While those universal claims go far beyond what the upgrade itself guarantees, they capture the heart of the bullish narrative: if enough economic activity migrates onto Ethereum-secured L2s that must pay non-negligible base fees, Ethereum becomes the settlement and value-capture layer beneath corporate and institutional chains.
Kira explicitly compares Fusaka to the London hard fork that introduced EIP-1559 in 2021. โWhen Ethereum introduced burn through eip-1559 in 2021, it lifted the whole market up,โ he wrote. โEveryone will be caught off guard this time as well. L2s burning eth incoming. Bullish eth. Bullish L2s.โ For now, Kira is clear about his own conclusion: โDecember 3rd, tik-tok. The ticker is ETH.โ
At press time, ETH traded at $3,022.
Featured image created with DALL.E, chart from TradingView.com
