We are currently averaging at around 1.6 MB per block. Removing the witness discount would bring us back to 1 MB blocks. This would be a 37.5% decrease in L1 transaction throughput. Over the past week we have been seeing a ~16% reduction in block production rate. (presumably due to the US winter storm) Despite this fees are still very low. Yes, a 37.5% decrease would increase fees more, but I wouldn't go as far as saying that fees would immediately explode to levels of 2017 or April 20th 2024.
What should then be the next move after that?
After such a change L1 would probably become more of a final settlement layer and less useful for small payments. So we should focus on improving L2 scaling solutions like Lightning or Ark.
We are currently averaging at around 1.6 MB per block. Removing the witness discount would bring us back to 1 MB blocks. This would be a 37.5% decrease in L1 transaction throughput. Over the past week we have been seeing a ~16% reduction in block production rate. (presumably due to the US winter storm) Despite this fees are still very low. Yes, a 37.5% decrease would increase fees more, but I wouldn't go as far as saying that fees would immediately explode to levels of 2017 or April 20th 2024.
After such a change L1 would probably become more of a final settlement layer and less useful for small payments. So we should focus on improving L2 scaling solutions like Lightning or Ark.