Ethereum community members Kevin Owocki and Devansh Mehta proposed introducing a new dynamic fee structure for the Ethereum application layer to balance revenue generation and developer fairness. This model adjusts fees based on the size of the project funding pool using a square root formula, setting a fee cap of 1% for projects exceeding $10 million. This proposal comes at a time when Ethereum is facing increased competition from Solana and a significant decline in network revenue.

Source: https://ethresear.ch/t/fair-fees-a-dynamic-formula-for-balancing-app-layer-value-creation-and-value-capture/22225