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.
EIP-6969 presents a generalized protocol which networks can reference in order to implement Canto’s Contract Secured Revenue (CSR) on any EVM L2.
Contract Secured Revenue = developers get revenue when ppl use their contracts .https://t.co/nxdgypdgDw
— Owocki.Ξth (🍄,💚) (@owocki) May 8, 2023
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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