The Ethereum Dencun upgrade, scheduled for March 2025, is poised to redefine the blockchain’s scalability and user experience—particularly for Layer 2 (L2) networks and gas fee dynamics. At the heart of this transformation lies EIP-4844, also known as proto-danksharding, a pivotal enhancement designed to drastically reduce data storage costs for rollups. This upgrade doesn’t just tweak the system—it reshapes how users interact with Ethereum, making transactions faster, cheaper, and more accessible than ever before.
What Is the Dencun Upgrade?
Dencun combines the Cancun execution layer upgrade with the Deneb consensus layer update. Its primary innovation is the introduction of blobs, or temporary data storage units that L2 rollups can use to post transaction data on Ethereum’s mainnet (Layer 1) at a fraction of current costs.
These blobs are separate from regular transaction data and expire after approximately 30 days, significantly reducing long-term storage burdens on the network. This mechanism enables L2 networks—such as Arbitrum, Starknet, Base, and Polygon—to batch and verify transactions off-chain while still leveraging Ethereum’s unmatched security.
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Impact on Major Layer 2 Networks
Each major L2 network stands to benefit uniquely from the Dencun upgrade, thanks to improved data availability and reduced overhead.
Arbitrum: Lowering the Barrier for Adoption
As an optimistic rollup, Arbitrum relies heavily on publishing data to Layer 1 for fraud proof challenges. Steven Goldfeder, co-founder of Offchain Labs, highlights that Dencun will dramatically lower these publication costs. While some competitors offer “free” transactions, Goldfeder notes such models are unsustainable without foundational cost reductions like those enabled by EIP-4844.
With cheaper data posting, Arbitrum can pass savings directly to users—potentially enabling microtransactions and broader DeFi integration.
Starknet: ZK-Rollups Enter the Efficiency Era
StarkWare, the team behind Starknet, emphasizes that blob-based pricing will be central to their cost optimization. CEO Eli Ben-Sasson explains that if blob fees are ten times lower than current calldata costs, transaction fees could drop by up to 90%.
Unlike optimistic rollups, ZK-rollups don’t require long-term data retention for challenge periods. This makes them even more efficient under Dencun, as they only need short-term blob access for validity proofs.
Base: A Fourfold Expansion in Data Capacity
Jesse Pollak, protocol lead at Coinbase and creator of Base, estimates that Dencun unlocks about four times more data space than currently used by all rollups combined. In a market-driven fee environment, this surge in supply could initially slash transaction costs by 90–95%.
However, Pollak anticipates a natural equilibrium will form as demand increases. Ultimately, he expects sustained cost reductions of 2x to 5x, bringing average fees down to just 5–15 cents per transaction—a game-changer for retail and social applications.
Polygon: Bridging ZK and Optimistic Rollup Economies
Polygon co-founders Jordi Baylina and Brendan Farmer point out that fee reductions stem from simple economics: increased data supply meets steady demand. While exact figures remain uncertain, Farmer stresses a key distinction—ZK-rollups avoid the 7-day data availability requirement that drives up costs for optimistic variants.
This structural advantage positions ZK-based chains like Polygon zkEVM to deliver consistently lower fees post-upgrade.
How Will Gas Fees Change After Dencun?
Gas fees have long been a pain point for Ethereum users. The Dencun upgrade directly targets this issue by reengineering how rollups interact with Layer 1.
Karl Floersch, CEO of OP Labs, describes Dencun as “the dawn of a new era” for Ethereum—one where scalability no longer comes at the cost of usability. By offloading bulk data to blobs, rollups minimize their footprint on the main chain, reducing congestion and associated gas spikes.
David Silverman, VP of Product at Polygon Labs, confirms that once L2s update their settlement contracts to support blobs, users will see immediate gas savings. Terence Tsao, a developer at Offchain Labs, projects an initial 75% reduction in L2 gas fees under current network loads—thanks entirely to proto-danksharding.
Even Ethereum’s own mainnet could see modest gas relief. As L2 sequencers (which submit batches to L1) consume less gas per batch, overall network demand decreases slightly—freeing up capacity for other critical operations.
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Rethinking Transaction Efficiency and User Experience
The implications go beyond mere cost-cutting. With near-zero transaction fees becoming feasible, developers can now design experiences where users never pay gas.
David Silverman envisions a world akin to Web2 services—where platforms absorb transaction costs to enhance user engagement, much like Zoom covers bandwidth for video calls. This model could unlock mass adoption in gaming, social media, and NFT minting.
For instance:
- Gamers could earn NFTs mid-playthrough without paying fees.
- Social platforms might let users tip creators via microtransactions.
- Retail NFT drops could become seamless, low-friction events.
Karl Floersch adds that removing friction between chains opens doors for cross-platform innovation. Imagine a video game interacting with DeFi protocols or social graphs—all while maintaining low costs and high security.
A Rollup-Centric Future for Ethereum
Dencun signals a strategic pivot: Ethereum is evolving into a rollup-centric ecosystem. Instead of scaling directly on Layer 1, innovation is shifting to L2s, where experimentation thrives without risking mainnet stability.
Core Ethereum development will focus on data availability and security—acting as a settlement layer—while rollups handle execution, user interfaces, and new features like account abstraction and custom opcodes.
This separation allows faster iteration on L2s while preserving decentralization. As more rollups adopt blob space, however, the marginal cost benefit will diminish over time due to rising demand—a natural market correction that ensures sustainability.
Frequently Asked Questions (FAQ)
What is EIP-4844?
EIP-4844 introduces “blobs” to Ethereum—a new type of transaction that carries temporary data for L2 rollups. This reduces data storage costs significantly and is the cornerstone of the Dencun upgrade.
Will gas fees really drop by 90%?
Initial estimates suggest up to a 90% reduction in L2 transaction costs under optimal conditions. Real-world savings may settle between 50–75%, depending on network usage and blob pricing dynamics.
Does Dencun affect Ethereum’s mainnet gas fees?
Directly? Not significantly. But indirectly, yes—by reducing the load from L2 batch submissions, mainnet congestion may ease slightly, leading to modest gas relief during peak times.
Are ZK-rollups better off than optimistic rollups after Dencun?
Yes, structurally. ZK-rollups don’t need long-term data storage for challenge windows, so they benefit more from short-lived blobs. Their cost efficiency gives them a competitive edge post-upgrade.
When will users feel the impact?
Shortly after the March 2025 activation. Once L2 networks deploy blob-compatible upgrades—which most plan to do immediately—users should notice cheaper transactions across DeFi, NFTs, and dApps.
Is this the end of high gas fees forever?
Not entirely. While Dencun slashes current costs, demand growth could push prices back up over time. However, this upgrade lays the foundation for future steps like full danksharding, ensuring ongoing scalability improvements.
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Final Thoughts
The Dencun upgrade marks a turning point in Ethereum’s evolution. By embracing a rollup-first architecture through EIP-4844 and proto-danksharding, it ushers in a new era of affordable, scalable, and user-friendly blockchain interactions.
Layer 2 networks will flourish with lower operational costs, enabling novel use cases once hindered by high fees. Meanwhile, everyday users gain access to a seamless Web3 experience—where minting an NFT or swapping tokens feels as smooth as clicking a button.
As Ethereum recedes into the background as a secure settlement layer, its true potential emerges not on Layer 1, but across a vibrant ecosystem of scalable L2s—ushering in the next wave of decentralized innovation.
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