On May 1, a group of independent developers in the Ethereum community unveiled Ethereum R1. This new layer‑2 solution is built to scale Ethereum without a native token.
It runs on public donations, not venture capital, and seeks to remain fully neutral, decentralised, and resistant to censorship.
A Community‑Funded Rollup
Ethereum R1 is designed as a rollup that belongs to everyone who uses and supports Ethereum. There is no pre‑mined allocation of tokens and no governance token to hand out. Instead, the team will rely on ETH donations from the public.
They believe that a scaling solution should be a shared resource, rather than a project controlled by insiders with private incentives. By using a donation model, Ethereum R1 hopes to avoid conflicts of interest and keep its operations open to all.
Neutrality and Security
From day one, Ethereum R1 plans to use permissionless proofs and a long upgrade delay period. A large multisig, with representatives from across the Ethereum ecosystem, will guard upgrades.
This setup makes it hard for any group to seize control or force changes. Until 2030, a share of the base fees will go toward research, development, and application support, and after that, those fees will be burned.
The developers see this as a way to invest in the network now and maintain its neutrality long term.
Filling a Gap in the L2 Landscape
Many layer‑2 projects today act more like new layer‑1 networks. They have private token sales, opaque governance, and centralised control. Ethereum R1 wants to be different.
It positions itself as a public good rather than a product of a foundation or a private team.
The announcement emphasises that this rollup is “grounded in credible neutrality, decentralisation, and censorship resistance,” giving Ethereum users an alternative to rollups that mimic standalone blockchains.
Recent Fee Trends in the Ethereum Network
Ethereum’s Dencun upgrade in March 2024 cut fees for L2 networks. By September, the base layer’s revenue had fallen by 99%, and transaction costs hit a five‑year low of about $0.16 in April 2025.
This drop shows that demand for block space on the main chain has shrunk. Layer‑2 solutions like Ethereum R1 aim to offer low fees while keeping the security of Ethereum’s base layer.
ETH’s Price Actions
At the time of writing, Ethereum’s price stood at $1,831.45, up just over 1% in the past 24 hours. The global market capitalisation reached $221.14 billion, and trading volume rose by more than 9%.
These figures highlight that Ethereum remains a leading blockchain network, even as users seek more efficient ways to send transactions.
Ethereum R1 represents a new approach to scaling the network. By relying on donations and broad community oversight, it aims to stay true to the ideals of decentralisation and neutrality.
If it succeeds, it could set a new standard for how future rollups and public‑good projects are built on Ethereum. As development moves forward, the wider community will watch closely to see if this token‑free model can deliver on its promise.