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To motivate and compensate creators of popular decentralized applications (dApps) on Layer 2, Ethereum developers are suggesting an upgrade referred to as EIP-6968. This proposal introduces a novel concept termed “contract secured revenue” (CSR), enabling dApp developers to receive a portion of the transaction fees accrued from users engaging with their smart contracts.
The CSR mechanism is regarded as a potential transformative element for the Ethereum scaling landscape, offering developers a profitable revenue avenue. With this upgrade, projects can partner and establish a Layer 2 ecosystem centered around common values and themes. The developers of the most utilized smart contracts would then be eligible for a share of the sequencer fee revenue, providing them with an extra financial motivation to deploy on Layer 2 networks.
The renewed focus on EIP-6968 arises from a recent presentation by Kevin Owocki, one of the co-authors of the proposal, at the EthCC conference in Paris. Owocki asserts that CSR could finance dApp development, support public goods, and encourage developers to engage with the network.
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At present, Layer 2 rollups are the leading scaling solution, with notable teams such as Arbitrum, Polygon, and zkSync dedicating resources to the development of Layer 3 networks, also known as “app-chains,” which accommodate a single dedicated decentralized application. EIP-6968 advances this concept, enabling what Owocki describes as “ecosystem-chains,” which extend beyond app-chains and promote collaborative initiatives among developers.
The proposed upgrade is an adapted version of EIP-1559, which was enacted in August 2021 and introduced Ethereum’s burn mechanism. This new proposal can be applied on any network utilizing EIP-1559, paving the way for wider adoption and implementation.
The prospective use of protocol rewards on Layer 1 (L1) to finance smart contract development signifies a notable change in the existing market dynamics. As the proposal gains momentum within the Layer 2 ecosystem, it could establish a positive feedback loop where skilled contract developers earn revenue proportional to the value they contribute to Layer 2 networks.
EIP-6968 is expected to ignite further dialogue and investigation within the Ethereum community, with developers and stakeholders keenly observing how this new incentive framework could influence the future of dApps and the broader Ethereum ecosystem.
The post Proposed Ethereum Upgrade Could Allow Layer 2 Developers To Share Fee Revenue appeared first on BitcoinWorld.
