🗳️Members of the Ethereum community have proposed a new fee system for application layers📱🗳️
Two members of the Ethereum community, 🌝Kevin Owocki and 🤓Devansh Mehta, have proposed a variable fee system for the Ethereum application layer to ensure fairness in profits and fee collection for application developers.
In a proposal on April 27, a simple equality was used to base quadrature funding, explaining a system that would reduce the fee percentage as funds arrive.
Owocki and Mehta stated in their explanation
"Fees for funding amounts less than $
will be calculated using quadrature funding (sqrt(1000 x N)).
For example - If the funding is $170,000, the square root of 1000 x 170,000 will collect $13,038.4 (or 7%) as an additional fee."
According to the proposers, if the application's funding amount exceeds $10 million, the fee will be limited to up to 1%.
🤔Thus, as the number of applications with limited funding grows, fees will be reduced without charging excessive amounts.
The proposal by Owocki and Mehta aims to balance profits and fairness among application developers on Ethereum and reflects an increasing demand to adjust the fee system and value discovery mechanisms for Ethereum's economic stability to compete with rival networks.
💥Pressure is increasing on Ethereum's competitors 💥
In 2024, the Solana-based network attracted 7,625 software developers compared to Ethereum's 6,456.
However, Ethereum remains a major draw for software developers, but according to 2024 data, it is seen competing with other networks.
According to on-chain research company Santiment, Ethereum's fees fell to the highest level in five years in April 2025. This is due to decreased demand for functionalities like DeFi (decentralized finance), leading to reduced activity on the base layer.
Due to this decreased demand, many organizations have begun to reduce (or sell) their Ether (ETH) investments, and investor confidence in Ethereum, the first smart contract platform, continues to decline without signs of recovery.
💰News from the magazine - Ethereum is sharply outperforming competitors in the $16.1T 🍀 finance (TradFi) tokenization race.
Credit to Cointelegraph
#helenthant #Ethereum $ETH #TRUMP
