Groundbreaking Blockspace Primitive Designed to Capture the L2 Sequencer's Revenue

Alkimiya Launches Groundbreaking Blockspace Primitive to Capture L2 Sequencer's Revenue Blockspace markets protocol Alkimiya today announced the launch of the first market that allows users to directly trade revenue generated by the Base rollup. Using Alkimiya's platform, participants can trade a percentage of the cumulative gas paid to the sequencer, which can fluctuate dramatically - from as low as 10 ETH to as high as 200 ETH in a single day.

The rise and fall of total gas spent serves as a direct measure of the blockspace's utilization. In general, the more users interact on Base, the higher the cumulative total gas spent. This new primitive is also designed to capture the value of most on-chain activities that contribute to increased gas fees.

“Trading total gas spent represents a unique way of betting on the fundamental growth of an ecosystem, without interacting with the platform's governance tokens, and in this case, Base doesn't have a token,” said Leo Zhang, founder of Alkimiya.

The economic relationship between the ETH mainnet and its rollups has long been debated. Broadly, the dispute arises from differing opinions on who ultimately benefits when transaction volume moves from the mainnet onto L2 networks. Top L2s are consistently raking in millions a month in revenue while paying <15% of to L1 validators since EIP-4844.

Launched in August 2023, Base quickly became one of the fastest-growing communities. Beyond attracting a vibrant, engaged user base, it has also positioned itself as a leader by generating the highest revenue among its peers-over $14 million in the last month.

With Alkimiya's Base L2 market, active community members can offset transaction costs by buying a percentage of the total gas spent on Base. Investors who are bullish on the Base ecosystem can participate in its upside. It is unlikely that Base will issue a governance token according to Jesse Pollack, creator of Base and head of protocols at Coinbase The fundamental analysis common in traditional finance is applicable to this market as well. By analyzing leading indicators such as bridging volume, active users, and transaction types, traders can predict revenue growth.

The Base gas markets serve as continuous predictions of how on-chain activities will change over time. Traders who foresee heightened network activity due to on-chain events, such as NFTs, airdrops, or AI agents, can also profit from it without engaging with the underlying assets.

In November, Base experienced a spike in reverted transactions caused by bots attempting to snipe new memecoin launches. Over 53% of the transactions were reverted, causing gas price on the network to elevate. Previously, users lacked protection against these volatile fee swings, simply paying the higher costs as they occurred. Now, Alkimiya enables users to hedge against these fluctuations.

Developed by Anicca Research, a leading institution in blockspace dynamics, Alkimiya protocol is the result of comprehensive studies and influential publications by leading researchers.

The Alkimiya Base L2 Gas Market is now live on Base. In August, it introduced its BTC Feerate Market, enabling users to trade the average Bitcoin network transaction feerate. Traders leveraged this market to benefit from on-chain events, such as Babylon Cap-1 launch, Magic Eden airdrop, and popular Rune mints.

About Alkimiya

Alkimiya is a blockspace markets protocol that facilitates the creation, trading, and settlement of synthetic blockspace resources, such as BTC network transaction fees. Founded in 2021, Alkimiya stands at the forefront of blockspace dynamics and is backed by Dragonfly, Castle Island Ventures, 1KX, GMR, Coinbase Ventures, Circle Ventures, Tribe Capital and Robot Ventures among others. For more information, visit https://alkimiya.io/.