This is an idea I'm workshopping in public...

A free-to-use Layer 2 (L2) where gas fees are fully subsidized could be what is needed to onboard a billion users onchain by eliminating transaction costs, with alternative business models sustaining the network. Leveraging tools like Coinbase Smart Wallet and Privy, users can create and sign into their wallets with email addresses or passkeys and then not require them to fund their account to have their first experiences.

Blockchain Network Referrals could leverage the value of onboarding, while sponsored transactions would allow the network to cover fees for users in exchange for loyalty or volume. Subscription-based services or freemium models could offer unlimited gas-free transactions for a flat fee, and staking models could generate revenue by redistributing rewards to subsidize fees. Data monetization could allow users to opt into sharing anonymized data in return for free transactions, and NFT/token royalties could generate ongoing income for creators and platforms to fund the network. This multifaceted approach would lower barriers to entry, enhance scalability, and create a frictionless blockchain ecosystem, though it would require careful design to maintain sustainability, privacy, and decentralization.

Alternate Business Model Options:

• Blockchain Network Referrals: Receive referral fees for onboarded users who then go on to use other chains, protocols and even dapps on the free chain.

• Sponsored Transactions: dApps pay for user transactions to boost loyalty and engagement.

• Freemium Model: Basic transactions are free, while premium features like enhanced privacy, priority processing, or advanced analytics require payment.

• Subscription Services: Users pay a flat fee for unlimited gas-free interactions.

• Staking & Revenue Sharing: Validators or users stake tokens to earn rewards that subsidize fees.

• Data Monetization: Users share anonymized data in exchange for free transactions.

• NFT/Token Royalties: Ongoing royalties from token sales fund the gas subsidies.

• Token Swap Fees: The network could be tokenized, and a fee is taken on the trading of its native token, creating a revenue stream for the network to subsidize gas fees without impacting other token transactions.

• Ad-Supported Model: Decentralized ad networks fund gas fees but hopefully with taste.

• Sin Tax: Everything is free but your memecoin trading. Memecoin traders gas fees fund the entire chain.