Ethereum upgrade to offer revenue sharing for Layer 2 developers

Developers of Ethereum have a proposition for scaling that will offer dApps the opportunity for revenue sharing in terms of transaction fees that they create on Layer 2. EIP-6968 has plans to introduce a kind of token that offers contract-secured revenue (CSR). This will provide the opportunity for developers to be able to receive a share of the transaction fees that are brought about by the users connecting with their smart contracts.

According to one of the co-authors of the proposition, Kevin Owocki, with the help of CSR, freshly introduced projects will be able to join up and build a Layer 2 surrounding their values, thus sharing sequencer fee earnings depending on the user with maximum usage. In case the concept is accepted, it will open the doors for developers of smart contracts who are positioned on Layer 2 to receive a suitable avenue for generating income.

These fresh avenues for earning income can be utilized for the funding of dApp creation, along with public goods and motivation for developers to become a part of a network. EIP-6968 was initially introduced in May 2023, and since then, the proposition has managed to gain momentum after a presentation was made by Owocki at the EthCC seminar in Paris.

Considering the fact that Layer 2 rollups are the top Ethereum upgrading solution, prime Layer 2 members such as Arbitrum, Polygon, and zkSync have begun the process of pooling in means for creating a framework for Layer 3 networks. Layer 3s consists of app chains that are responsible for a sole and fixed decentralized application. In the opinion of Owocki, EIP-6968 provides for ecosystem chains and is a move ahead of app chains.

The propositioned scaling is a fresh version of EIP-1559, which was positioned live in August 2021, and was instrumental in delivering Ethereum’s burn system. As per the authors, it is possible for any network utilizing EIP-1559 to make use of EIP-6968 too.

As per the proposition, the utilization of protocol rewards from Layer 1 for funding the development of smart contracts will turn out to be an absolute game changer. According to Owocki, it will be interesting to observe the kind of movement this will bring about where the Layer 2 ecosystem is concerned and for the smart contract developers gaining earnings for their contribution towards Layer 2.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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