Lorenzo said the latest improvement proposals being discussed around Solana and Ethereum are surprising given the competitive pressure already visible in the market. In his view, projects such as Hyperliquid are presenting a strong challenge, yet the two communities are still spending time on inflation schedules and CU limits. He argued that this could weaken application competitiveness even more. Lorenzo said Layer 1 networks should put proposal design behind a clearer goal: strengthening network competitiveness, driving growth, and bringing in more consumer-facing applications and users. Speaking specifically about Solana, he said now is not the time to focus on token holder value accrual, cash flow, or measures that raise costs for app developers. His main point was that the network first needs to prove it can make the overall opportunity 100 times larger, and only then debate how to divide it. He added that while more precise pricing for high-resource transactions and token value accrual will matter later, those issues become far less meaningful if HYPE captures market share first.
According to ChainCatcher, Lorenzo said the latest improvement proposals around Solana and Ethereum were surprising in light of the market backdrop.
He wrote that the market has already shown that projects such as Hyperliquid are mounting strong competition. Even so, the related communities are still spending time adjusting inflation schedules and CU limits, a direction he said could further reduce application competitiveness.
Network competitiveness should come first
Lorenzo argued that Layer 1 networks should first ask whether a proposal can improve network competitiveness, support growth, and attract more consumer applications and users.
On Solana, he said this is not the moment to dwell on token holder value accrual and cash flow, or to raise costs for application developers. In his view, the network should first prove it can make the overall pie 100 times bigger, then discuss how that value should be allocated.
Scale before distribution
He added that the market will eventually need more refined pricing for transactions that consume large amounts of resources, and that token value accrual still needs to be addressed. But if HYPE takes market share first, he said, there will be no value left to accrue.
For now, Lorenzo said the priority should be to make the pie 100 times bigger.
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