EIP-6969: Unlocking Sustainable Revenue Opportunities for Ethereum Developers

Ethereum is set to introduce a groundbreaking improvement that could revolutionize revenue generation for developers on Ethereum Layer 2 solutions. An Ethereum Improvement Proposal (EIP-6969), known as Contract-Secured Revenue (CSR), aims to reward developers whenever users interact with their deployed code on the blockchain.

The co-author of EIP-6969, Kevin Owocki, shared his motivation behind the proposal. As a builder in the Web3 space, Owocki recognized the challenges faced in monetizing the products he helped create. He emphasized the need for sustainable revenue opportunities that are less speculative.

Inspired by the Canto Layer 1 network, a permissionless blockchain, Owocki saw an opportunity to bring the concept of Contract-Secured Revenue to the Ethereum Virtual Machine (EVM) ecosystem. This would provide a means for developers to earn revenue while driving activity to Ethereum Layer 2 solutions.

Currently, on Ethereum Layer 2 solutions, transaction fees are collected by the sequencer as a portion of the gas consumed during contract interactions. EIP-6969 modifies this model by allocating a percentage of the gas fees to the smart contract’s developer.

When a contract is deployed on the Ethereum network, the developer’s address is attached to the contract. The execution time spent within the smart contract is mapped proportionally, ensuring that a percentage of the fee revenue is returned to the developer’s address.

Owocki believes that EIP-6969 can bridge the gap between Layer 2 solutions in need of more developers and developers seeking revenue opportunities. By incentivizing the creation of infrastructure, this proposal encourages developers to contribute to the evolving open-source infrastructure within the Ethereum ecosystem.

The modular architecture of Ethereum smart contracts, designed with composability in mind, lays the foundation for the expanding Ethereum ecosystem. EIP-6969 acknowledges this architecture and ensures that revenue is distributed not only to the top-level smart contract but also to contractors who have contributed to modifying the code.

The implementation of CSR on the Ethereum ecosystem will follow a timeline. Currently existing in the Canto ecosystem, the next step is for the EIP to be accepted by the community. Once accepted, a canonical spec will be developed to guide its operation within the Ethereum ecosystem.

The subsequent phase involves collaboration with Layer 2 solutions to integrate CSR. This implementation process is expected to occur within the next six months. Notably, the deployment will take place on Layer 2 solutions rather than the Ethereum mainnet, as it allows for faster development while maintaining the neutrality and resistance to capture of the Ethereum mainnet.

EIP-6969 presents an exciting opportunity for developers to earn revenue sustainably and incentivizes the creation and maintenance of open-source infrastructure within the Ethereum ecosystem. As Ethereum continues to evolve, this improvement has the potential to reshape the landscape for developers and further solidify Ethereum’s position as a leading blockchain platform.

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