I think he downplays the miner incentive distortions. I think if we do drivechains, it means every drivechain community now has to apply political pressure to miners to make sure that the “right” withdrawl transactions get processed. This has a real potential of affecting L1. No thanks.
Drivechains are awesome because they allow for financial experiments that benefit bitcoin. There are two chains that do stuff that a small number of real people seem genuinely interested in: eth and xmr. But to use these chains, people have to buy altcoins, which harms bitcoin slightly and benefits scammers immensely. Drivechains make it so that the features of eth and xmr exist on chains where transactions sill benefit bitcoin. The users of an eth-like drivechain or an xmr-like drivechain would not have to buy an altcoin to use them, and all fees paid to create drivechain blocks end up in the pockets of the bitcoin miners who help secure our coins. So yeah I'm a fan.
From what I understand and please do correct me if I’m wrong, at least 50% of the hashrate has to opt-in to support a drivechain, and all users that are interested in the drivechain need to run a client that supports it. If a very significant portion of the economic activity of the Bitcoin ecosystem moves to a drivechain, wallets will be pushed to adding support for it. It seems to me that activating drivechains would very likely significantly increase complexity of Bitcoin software in the medium-term.
I'm not sure if Liquid "did it wrong" or the issue is more that nobody gives a crap.
Shitcoinery does not benefit from what he describes. Shitcoiners are much better off creating their own tokens and platforms. He gives a few possible exceptions like Monero, but Monero doesn't seem to want to be backed by bitcoin mining. They have their own mining. They like it that way.
From what little I understand about it them seem very interesting, but I can't fully comprehend the technical meaning of the proposal. Hopefully one day I can take the time to do so.
I don't personally worry about these things too much. I worry more about bitcoin getting changed too much too quickly than the other way around.
I keep forgetting to ask about ossification in relation to bip300
I think it's a cool feature but not one that is really needed right now, it could suck a lot of the shitcoinery into bitcoin as people try the same rug pulls on drive chains and I guess brings more users and liquidity but is that really something we want to bring to btc?
as for the miner incentive and collusion possibilities, not much has been discussed on that front, and I'd like to know more about the downsides