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ETHEREUM members propose a new application fee for the application layer

Two members of Ethereum, Kevin Owocki and Devansh Mehta, suggested a dynamic fee structure for the ETHEREUM application layer to balance the generation of revenue for applications and fairness in drawing fees.

April 27 an offer A simple equation has made it clear that the Spring Root function is relatively reduced by the percentage of fees with the growth of the capital designated for a specific project. Owocki and Mehta explained:

“For microfinance amounts, the fees follow the Spring root function (SQRT (1000 x N), which provides relatively higher returns to make construction mechanisms for smaller collections worth it. For example, if the financing raption is $ 170,000, the root of 1000 x 170,000 dollars is equal to 13,038.4 dollars or 7 %.”

The author of the proposal added that the fees will be directed by 1 % by just crossing the financing of a specific application at a level of 10 million dollars, which ensures that small applications can develop decentralized applications without excessive fees while encouraging the project and financing growth by identifying fees with developers with their applications.

Imagine the suggested fees structure flows at the higher project financing levels. source: Ethereum Research

Owocki and Mehta’s proposal reflects the budget for revenue generation and profitability between ETHEREUM Applications, the increasing calls for repair fees and value mechanisms for maintaining ETHEREUM economic feasibility against competing networks.

Related to: ETHEREUM approach is equal to many high productivity chains-benefiting from Exec

ETHEREUM competitors increase the temperature as Ethereum faces the revenue crisis

In 2024, the Solana Ecosystem system aboard developers more than Ethereum, which attracts 7,625 new developers compared to 6,456 from Ethereum.

Despite the increase in the Solana network developers in 2024, Ethereum is still the dominant ecosystem to attract developers talent, although 2024 data shows that the situation is no longer indisputable.

Ethereum 2.0
Solana network is now the second option for decentralized application developers and communicates with ETHEREUM. source: Electric capital

According to Onchain Analytics Santiment, ETHEREUM fees decreased to their lowest level for five years in April 2025 due to the low activity on the ETHEREUM base layer caused by low demand for smart contracts such as decentralized financing.

This reduced demand leads to many institutions expanding the scope of ether possessions (ETH) or selling parts of their investments as the morale of investors towards the first smart contract platform ever in erosion without any clear incentives for a reflection.

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