⏫ [Analysis] Response to "The collapse of ETH is inevitable" - Vitalik Buterin

In response to a TechCrunch article posted by Jeremy Rubin, Ethereum co-founder Vitalik Buterin shared a response to Rubin's ideas around economic abstraction, which would allow ERC20 tokens to replace ($ETH) for gas fees. Buterin noted:

• The Ethereum community is considering two proposals related to alternative assets for gas. A draft paper on resource pricing lays out a new model where gas is targeted at a higher rate (50 percent), using a self-adjusting minimum transaction fee to do the targeting. This fee would ultimately be burned. Block proposers would pay the fee, allowing them to charge fees in any ERC20 they like but ultimately they would be required to pay in ETH. Another proposal would charge maintenance fees for data on the network. This fee would be burned as well.
• Modified proof-of-stake (PoS) models like heterogeneous deposit PoS (HD-PoS) are hard, and perhaps impossible, because the algorithm needs to constantly account for changing ratios and values of tokens. Without a multi-token system, ETH would be required to stake.
• In general, economic abstraction can still happen at the user level where users can select any token they wish. block proposers would still be required to use ETH. Third parties could also create "wrapper transactions" that take the fees for operations from users, allowing them to pay in ERC20 tokens, and then the third parties could provide the ETH to the block proposer.