Kevin Owocki and Devansh Mehta proposed a new fee structure for Ethereum’s app layer. This dynamic structure aims to lower fees as project funding grows, using a square root function to incrementally reduce charges.
Fees will be capped at 1% once funding exceeds 10 million USD. This is intended to support smaller app developers in creating decentralized applications, encouraging a balanced revenue generation for developers.
Ethereum is facing growing competition from Solana, which saw a rise in developer onboarding in 2024. Despite its dominance, Ethereum needs to adapt to maintain its competitive edge as its fees have reached five-year lows.
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