Size of Ethereum Countries

@nishio: what is the size of an “Ethereum country” if we consider Ethereum’s TX fee as tax revenue, compared to the tax revenue of other countries? What is the size of “Ethereum country” compared to the tax revenue of other countries? Or in terms of Japanese local governments, how many cities?

yu8muraka3 L1 analysis from profitability perspective 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 The first profitable blockchain | Bankless

yu8muraka3 accuracy somewhat? But according to the article (4/1)

Ethereum will be around later this year, per day. $13 M (t r an s a c t i o n f ee) -$ 4M (issue amount), Net income projected at $9M (72% profit margin)

Ethereum is bringing in nearly $13 M in t r an s a c t i o n f eese v ery d a y, makin g i tt h e m os t v a l u ab l e b l oc k c hainb y t hi s m e a s u re . Ho w e v er, t h e f l i p s i d eo f t ha t i s t ha t in or d er t o p ro d u ce t h ose b l oc k s, t h e n e tw or ki s d i s t r ib u t in g$ 36M in ETH per day in issuance to miners. As such, Ethereum is currently operating at a -64% loss.

(DeepL)Ethereum brings in nearly $13 M in t r an s a c t i o n f ees d ai l y, makin g i tt h e m os t v a l u ab l e b l oc k c hainb y t hi s m e a s u re . B u t o n t h e f l i p s i d e, t o g e n er a t e t h ose b l oc k s, t h e n e tw or ki ss u es an dd i s t r ib u t es$ 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 $4 Mp er d a y in ET H t os t ak ers . T h e im p or t an tp a r tt o n o t e i s t ha tET H f ees d o n ’ t c han g e w i t h T h e M er g e — t h eys t a y t h es am e . T hi s m e an s t ha tl a t er t hi sye a r, t h e n e tw or k w i ll b e d i s t r ib u t in g$ 4M per day in issuance while generating $13 M in re v e n u e, g e n er a t in g an e tp ro f i t o f$ 9M and a profit margin of +72%.

(DeepL) Later this year, the network will distribute $4 mi ll i o nini ss u an ce p er d a y w hi l e g e n er a t in g$ 13 million in revenue, producing a net profit of $9 million and a 72% profit margin.

Q: Ethereum has $4, 745 M re v e n u e a ye a r . C o m p a re t h ere v e n u e w i t h o t h er na t i o n s . Wha t i s t h e n e a res t na t i o n ? GPT - 4 : ... i s i sc l oses tt o t h e g o v er nm e n t b u d g e t o f t h e R e p u b l i co f C o n g o, w hi c hha s ab u d g e t o f a pp ro x ima t e l y$ 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.

nishio backdropped. Summary:. 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.

0xtkgshn Related Compensation for validators vs. budget for R&D. [/tkgshn/Moving beyond coin voting governance](https://scrapbox.io/tkgshn/Moving beyond coin voting governance)

This page is auto-translated from /nishio/Ethereum国の規模 using DeepL. If you looks something interesting but the auto-translated English is not good enough to understand it, feel free to let me know at @nishio_en. I’m very happy to spread my thought to non-Japanese readers.

🪴 Quartz 4.0

Size of Ethereum Countries

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