Size of Ethereum Countries

All L1 chains have a negative balance now, but I predict that Ethereum will have a positive balance for the first time after the PoS transition.

Public blockchain business models are

Net profit = Transaction fees - Token issuance

Ethereum will be around later this year, per day.

$13M (transaction fee) - $4M (issue amount),

Net income projected at $9M (72% profit margin)

https://pbs.twimg.com/media/FXZceXgaAAEXnOv?format=jpg&name=medium#.png

Ethereum is bringing in nearly $13M in transaction fees every day, making it the most valuable blockchain by this measure. However, the flip side of that is that in order to produce those blocks, the network is distributing $36M in ETH per day in issuance to miners. As such, Ethereum is currently operating at a -64% loss.

(DeepL)Ethereum brings in nearly $13M in transaction fees daily, making it the most valuable blockchain by this measure. But on the flip side, to generate those blocks, the network issues and distributes $36M ETH per day to miners. Therefore, Ethereum is currently operating at a -64% loss.

As of 2022-03-31

The First Profitable Blockchain is Coming

Ethereum is the first blockchain on a clear path to profitability with The Merge. Sometime later this year, the network will shift to Proof of Stake and reduce its issuance by 90%.

The interesting part of The Merge and Ethereum’s shift is that it’s not just a pure issuance reduction.

There’s a fundamental change in how that “security budget” is spent while tapping into higher security efficiency. Given the shift in the consensus algorithm and the improvements it holds, Proof of Stake makes Ethereum more secure while simultaneously allowing the network to reduce issuance.

With the network’s 90% issuance reduction, Ethereum would be distributing less than $4M per day in ETH to stakers. The important part to note is that ETH fees don’t change with The Merge—they stay the same.

This means that later this year, the network will be distributing $4M per day in issuance while generating $13M in revenue, generating a net profit of $9M and a profit margin of +72%.

(DeepL) Later this year, the network will distribute $4 million in issuance per day while generating $13 million in revenue, producing a net profit of $9 million and a 72% profit margin.

Q: Ethereum has $4,745M revenue a year. Compare the revenue with other nations. What is the nearest nation?

GPT-4: ... is is closest to the government budget of the Republic of Congo, which has a budget of approximately $5,600M a year.

Countries in Europe:

Estonia: $11,000M, which is more than twice the annual revenue of Ethereum.

Albania: $3,500M, which is less than the annual revenue of Ethereum.

Municipalities in Japan:

Kawasaki: The budget of Kawasaki city is approximately $5,500M, which is slightly higher than the annual revenue of Ethereum.

Sakai: The budget of Sakai city is approximately $2,500M, which is about half of the annual revenue of Ethereum.

Companies:

Twitter: The revenue of Twitter in 2022 was approximately $4,800M, which is slightly higher than the annual revenue of Ethereum.

Snap Inc.: The revenue of Snap Inc. in 2022 was approximately $2,500M, which is about half of the annual revenue of Ethereum.

If you consider Ethereum's TX fee as tax revenue or company sales, it is a little below the size of Kawasaki City and a little above Twitter. Even if the size is Twitter, the profit margin is 72%, which is very strong. On the other hand, it cannot be governed like Twitter, and future history will show whether this is a disadvantage or an advantage.

Compensation for validators vs. budget for R&D.

https://pbs.twimg.com/media/Fwt1qt6aIAEhTEv?format=jpg&name=large#.png

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