28 April | Ethereum

Ethereum considers dynamic fee structure to maintain its economic viability

Ethereum considers dynamic fee structure to maintain its economic viability

The Ethereum ecosystem may change its fee structure to ensure a fair revenue distribution for app developers. The idea was suggested by cryptocommunity members Kevin Owocki and Devansh Mehta on the Ethereum Research website. Experts propose to replace the current fee scheme with a dynamic one.

Under the new formula, the fee rate would inversely correlate with a project’s funding level. Early-stage projects with limited capital would pay a higher percentage, while more established initiatives would see reduced fees. This approach aims to support smaller developers while maintaining Ethereum’s economic sustainability.

According to Cointelegraph, the experts' proposal reflects growing calls from network participants to reform the current fee structure in order to maintain Ethereum's economic viability. This task is particularly important amid the increasing popularity of competing platforms such as Solana.

In 2024, SOL attracted more developers than ETH, 7,600 vs. 6,500. While Ethereum is solving the problem of revenue shortage, Solana is actively taking over the cryptocurrency market, according to Cointelegraph.

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