Ethereum community members propose a new fee structure for the application layer

ChainCatcher news, according to Cointelegraph, Ethereum community members Kevin Owocki and Devansh Mehta proposed a dynamic fee structure for the Ethereum application layer on April 27, aiming to balance the fairness between revenue generation for application developers and fee extraction.

The proposal uses a square root function to calculate the fee ratio, charging a higher percentage when the fund pool is smaller, with a fee cap of 1% when exceeding $10 million, to support application developers and encourage project growth.

The proposal by Owocki and Mehta to balance the income and profitability of Ethereum application developers reflects the growing calls for reforming the fee structure and value accumulation mechanisms to maintain Ethereum's economic viability relative to competing networks.