Ethereum is considering the implementation of keyed nonces as a dual-purpose solution to enhance privacy and introduce a new state scaling strategy. This approach aims to optimize storage for specific use cases while maintaining decentralization. By focusing on in-protocol nullifiers, Ethereum could potentially handle 500 billion nullifiers on-chain over eight years, supporting 2000 transactions per second. The strategy involves using a dedicated nullifier store, which allows for more decentralized management through techniques like sharding and bloom filters. These methods are not feasible for dynamically accessible states, highlighting the challenges of managing fully dynamic states at extreme scales. By transitioning to specialized state forms, Ethereum aims to remain decentralized and scalable, while keeping dynamic states available for applications that require full functionality.