Ethereum Improvement Proposal EIP-6968: Enabling Decentralized App Developers to Earn Transaction Fees on Layer 2

An Ethereum Improvement Proposal (EIP) to Facilitate Revenue Sharing for dApp Developers on Layer 2

An Ethereum Improvement Proposal (EIP), dubbed EIP-6968, has been proposed by Ethereum developers to facilitate decentralized application (dApp) creators to earn a share of transaction fees generated on Layer 2 (L2). EIP-6968 aims to introduce a new type of token, the “Contract Secured Revenue” (CSR), which would allow developers to claim a percentage of transaction fees generated when users interact with their smart contracts. This proposal presents an opportunity for projects to collaborate and share sequencer fee revenue based on their usage.

Mechanism and Scaling

Layer 2 solutions play a crucial role in enhancing the scalability of the Ethereum network. They conduct transactions off the main Ethereum blockchain (Layer 1 or L1), reducing congestion and transaction costs. By using state channels, sidechains, and rollups, Layer 2 solutions enable faster and more efficient transaction processing, boosting throughput and scalability.

The Relation Between L2s and EIP-6968

Layer 2 solutions can incentivize smart contract developers to deploy their dApps on these networks by introducing the concept of “Contract Secured Revenue” (CSR). The more a developer’s smart contracts are used, the more transaction fees they can potentially earn. This motivates developers and accelerates the development and scaling of the Ethereum ecosystem.

Adoption and Potential Impact

The revenue generated from CSR could be utilized for funding dApp development, public goods, or incentivizing developers to join a network. EIP-6968 promises to revolutionize the Ethereum scaling sector by introducing a novel incentive for developers. The proposed upgrade could be adopted by any network that uses EIP-1559, potentially benefiting the entire L2 ecosystem.

Hot Take

EIP-6968 presents an exciting opportunity for dApp developers to earn revenue based on the usage of their smart contracts on Layer 2. By introducing the “Contract Secured Revenue” (CSR) concept, Ethereum aims to foster innovation and community growth. This proposal has the potential to revolutionize the Ethereum ecosystem and incentivize developers to contribute to the scaling of the network.