CRYPTO 101 Ep. 706 – Revolutionizing Ethereum: The Future of Gas Fees with ETHGas

Date: February 23, 2026
Host(s): Bryce Paul & Brendan Viehman
Guest: Kevin Lepso, Founder of ETHGas

Episode Overview

This episode delves into the evolution and future of Ethereum gas fees, featuring an in-depth conversation with Kevin Lepso, founder of ETHGas. The discussion centers on the scalability challenges Ethereum has faced, how the ETHGas project is building solutions—particularly by creating markets for Ethereum block space—and what these innovations mean for both everyday users and institutional participants. The hosts explore not just the technical underpinnings, but the broader impact on accessibility, efficiency, and user experience for all participants in the Ethereum ecosystem.

Key Discussion Points & Insights

1. Kevin Lepso’s Background: Traditional Finance to Crypto Pioneer

Timestamps: 02:36–05:25

• Kevin shares his journey from twelve years in traditional finance (TradFi) during the 2008 financial crisis, observing inefficiency and layers of costly intermediaries.
• Began mining Bitcoin around 2011–2012; was skeptical at first, but intrigued by decentralized finance.
• Attended early talks by Vitalik in Hong Kong about Ethereum:

  “That’s a little different than Bitcoin. You can actually do all these things…” (03:55)

• Recognizes DeFi Summer as the inflection point that proved the rails for a new kind of financial system were being built.

2. How TradFi Informs Block Space Market Design

Timestamps: 10:21–13:05

• Ethereum gas (block space) is the “single most valuable instrument in crypto…without blockspace, Ethereum is worth zero.” (11:22)
• Kevin:

  “In the real world, we have commodity markets… to provide transparency, manage risk, eliminate cartels. That’s exactly what we have in crypto.” (11:34)

• Traditional finance experience impacts his approach—focusing on both economic rationale and technical innovation.

3. ETHGas: Trading and Commoditizing Block Space

Timestamps: 13:17–15:14

• ETHGas creates a futures market for Ethereum block space, allowing validators to sell future block access—users/institutions can “buy a barrel of ETH gas.”
• Kevin:

  "What if we took a block, broke it into hundreds of pieces…that creates a real time Ethereum experience." (15:00)

• Validators can sell block access in advance, creating transparency and commoditization similar to oil or electricity markets.

4. The Vision: Gas Tokens & Real-Time Execution

Timestamps: 15:14–17:51

• Future roadmap includes tokenized gas purchases—buy cheap, use later (not live yet, but in progress).
• ETHGas starts by selling the “right to land trades in specific blocks,” with plans to roll out broader base fee tokenization.
• Kevin:

  “Soon… you can just buy 1 million gas, 10 million gas, and use it when gas prices are high, or sell it when it’s high, buy it when it’s low…” (16:38)

• Funding rates expected to be volatile, potentially offering high yields for skilled users.

5. Instant Transactions & Real-Time Ethereum

Timestamps: 19:14–22:02

• ETHGas working with wallets to introduce a new “instant” transaction tier—alongside slow, medium, fast—making Ethereum user experience feel truly instantaneous.
• Kevin:

  “In November last year, we were able to make Ethereum about eight times faster than Solana…about 50 milliseconds.” (20:28)

• Prototype already on mainnet; working on broad rollout through wallet integrations.
• Current coverage is ~5% of Ethereum blocks, aiming to reach 40% by end of year, making near real-time execution broadly available.

6. Economics and User Base: Who Benefits?

Timestamps: 23:37–29:09

• Cost of instant transactions could be less than today, due to MEV-reducing effects, but market will decide.
• Target market: everyone—from average retail users to major DeFi protocols and validators.
• Improved speed means more trades per time unit—potentially increased revenue for projects like Uniswap (“two to three billion dollars more a year”).
• Brendan observes:

  “There’s going to be people who care more about time than price. There’s going to be the vice versa. And so I think letting people have the option to do this is so important…” (28:13)

• Real-time execution kills most predatory MEV (Maximal Extractable Value) practices.

7. Reframing Gas Fees & User Experience

Timestamps: 33:48–39:40

• Discussions around why it matters to build instant, affordable transaction experiences on L1 (Ethereum main chain), even with scaling L2s.
• Kevin uses metaphor:

  “Ethereum as downtown, L2s as uptown or suburbs.” (34:14)

• L1 improvements benefit the entire ecosystem, enabling more throughput and richer applications.

8. Gasless Transactions: Myth or Reality?

Timestamps: 38:12–41:52

• Fully “gasless” isn’t practical, but making gas invisible to end-users is ETHGas’s aim.
• The Open Gas initiative partners with major protocols to have them shoulder gas costs—users get rebates:

  “…the protocols will pay for gas on behalf of the end users and they'll just bake it into their transaction fees.” (38:18)

• Still friction for TradFi institutions around variable fees—education needed to overcome mental hurdles.

9. Record Ethereum Usage: High Transaction Volume, Low Fees

Timestamps: 43:22–45:33

• Recent all-time highs in Ethereum transactions, while average gas fees hit multi-year lows (under $0.01).
• Indicates success of scalability efforts; further improvements expected as L1 increases block space tenfold in 2026.

10. How to Get Involved: Access, Integration, Rollout

Timestamps: 45:33–47:39

• Real-time transaction capabilities will roll out via major wallets—expect ~100M users to have access within a month (pending integrations).
• Gas rebates (Open Gas initiative) available through partner protocols, claimable by users on ETHGas’s website.
• Contact:

  “On my X I’m just lepso at lep. So our team account is eth Gas official. Hit us up there. Say hi.” (47:39)

Notable Quotes & Moments

• Kevin Lepso (11:22):

  “Block space is the single most valuable instrument in crypto. Like, without block space, Ethereum is worth zero. All the assets on Ethereum are worth zero.”

• Brendan Viehman (17:51):

  “For all the degens out there... that's the thing that you need to take home... it’s always good to be prepared and I think it makes sense for your finances as well…”

• Kevin Lepso (20:28):

  “In November last year, we were able to make Ethereum about eight times faster than Solana… about 50 milliseconds. That’s pretty good as a first shot.”

• Brendan Viehman (28:13):

  “There’s going to be people who care more about time than price. There’s going to be the vice versa. And so I think letting people have the option to do this is so important…”

• Kevin Lepso (38:18):

  “One of the things we’re working on is... the Open Gas initiative... to shift the responsibility of gas fees to the protocol and away from the user.”

Important Segments & Timestamps

• Kevin’s TradFi to Crypto Story: 02:36–05:25
• Blockspace Market Rationale: 10:21–13:05
• How ETHGas Works: 13:17–17:51
• Real-Time Ethereum/Instant Transactions: 19:14–22:02
• Scalability and L1 vs. L2 Debate: 33:48–36:19
• Gasless Transaction Concepts: 38:12–41:52
• Volume/Low Fee Milestone: 43:22–45:33
• Participation & Rollout Details: 45:33–47:39

Tone & Style

The discussion is conversational, technical, but extremely accessible to engaged listeners—balancing "big picture" market design thinking with practical user impacts. Both hosts and Kevin aim to demystify complex topics without dumbing things down, using analogies from daily life, and maintaining optimism about the future of Ethereum innovation.

Takeaways for Listeners

• ETHGas is actively transforming Ethereum’s core transaction experience, making “real time” execution and predictable, ultra-low gas costs within reach in 2026.
• The project aims to democratize access: every user will be able to choose speed and save on fees, while predatory actors are pushed aside by transparent markets.
• Major wallet and protocol integrations are on the near-term horizon—watch ETHGas’s channels for announcements and opportunities to participate, claim gas rebates, or experience real-time onchain trading firsthand.