A change that could alter balances on Ethereum (ETH) may be coming: Here are the new proposals and details!

While the largest altcoin Ethereum has been showing a weak outlook with its declines against (ETH), Bitcoin, it has been trying to recover in recent days.

As ETH tries to find a path to recovery after a series of challenging days, a new proposal has emerged for Etheruem.

The new Ethereum proposal suggests a dynamic structure to balance between application revenue and fair fee extraction.

Two members from the Ethereum community, Kevin Owocki and Devansh Mehta, proposed a new Ethereum fee structure aimed at balancing revenue and fees for application developers.

The suggestion proposes using a square root formula that proportionally reduces the percentage of fees as the capital allocated to a specific project grows.

Owocki and Metha stated that if a specific application's fund pool exceeds the level of 10 million dollars, the fees will be limited to 1%.

Ikili added that with this method, small application developers can develop decentralized applications without paying excessive fees, and that as developers scale their applications, fees will be limited, and project and fund growth will be encouraged.

The proposal by Owocki and Mehta to establish a balance between revenue generation and profitability among Ethereum application developers came at a time when Ethereum was lagging behind its competitors like Solana (SOL).

According to the analysis platform Santiment, Ethereum fees fell to their lowest level in five years in April 2025 due to decreased demand for smart contract transactions such as decentralized finance, resulting in low activity on the Ethereum base layer. Additionally, the Solana network had more developers than the Ethereum network in 2024. According to the data, SOL added 7,625 new developers compared to Ethereum's 6,456 new developers.