Ethereum: New fee structure to encourage growth and balance!

Ethereum: New fee structure to encourage growth and balance!

At a time when Ethereum (ETH) is struggling with declines and weaker prospects, an innovative proposal is coming into play that could fundamentally change its future. While the largest altcoin on the market is experiencing declines relative to Bitcoin and activity remains low, the Ethereum community is looking for ways to put the network back on an upward trajectory.

Balanced revenue and fair fees

Two active community members, Kevin Owocki and Devansh Mehta, have presented a proposal for a new fee structure to address the current low revenue issues and encourage the development of decentralized applications. They proposed a dynamic system based on a square root formula that proportionally reduces the percentage of fees depending on the size of the fund allocated to a particular project.

Under their proposal, if the project funding pool exceeds the $10 million threshold, fees would be capped at just 1%. This system is intended to encourage small developers to create and develop their decentralized applications without excessive costs, and the fees will decrease as the project grows, which is intended to encourage larger teams to expand.

Supporting growth and competitiveness

Owocki and Mehta stressed that this approach could help Ethereum compete with strong rivals such as Solana (SOL), which have seen significant growth in the number of developers and more active ecosystems in recent years. Statistics show that by 2024, the Solana network already had 1,169 more new developers than Ethereum, at a time when ETH fees have fallen to a five-year low.

This proposal comes at a time when Ethereum's network is lagging behind its competitors not only in the number of developers but also in activity at the core layer, especially in decentralized finance (DeFi). A new fee structure could be the key to restoring growth and making it more attractive to developers and users.

Conclusion.

Although Ethereum faces challenges, this innovative proposal to balance revenue and developer support suggests that the community is looking for new ways to strengthen the network and make it more competitive. If successfully implemented, this concept could mark the beginning of a new era for Ethereum, propelling it back to the forefront of the blockchain space.

Stay tuned - the future of Ethereum may be about to change in a major way!

*This is not an investment recommendation.

Coingarage team