Two Ethereum community members, Kevin Owocki and Devansh Mehta, have proposed a new fee structure for the Ethereum application layer to ensure fair revenue generation for app builders. The proposal, released on April 27, suggests using a dynamic formula that adjusts fees based on the capital allocated to a project. The equation involves a square root function, which decreases the percentage of fees as the funding pool grows. The proposal aims to provide higher returns for smaller funding amounts and cap fees at 1% once a project’s funding pool surpasses $10 million. This initiative intends to support small app builders while promoting project and funding growth. Owocki and Mehta’s proposal aligns with the ongoing efforts to reform fee structures within the Ethereum network to enhance economic sustainability amid increasing competition. In 2024, the Solana ecosystem attracted more developers than Ethereum, signaling a shift in developer interest. Despite this, Ethereum remains a primary choice for developers, but its dominance is being challenged. Ethereum’s fees hit a five-year low in April 2025 due to reduced demand for smart contract operations like decentralized finance, leading institutions to scale back their ETH holdings. The declining sentiment towards Ethereum raises concerns about its future trajectory. This development underscores the need for innovative solutions to maintain Ethereum’s position in the evolving blockchain landscape.