An Ethereum Improvement Proposal, dubbed EIP-6969, is looking to implement Contract-Secured Revenue (CSR) on Ethereum L2s.
CSR refers to a series of smart contracts that enable developers to earn revenue whenever others interact with the code they have deployed on-chain.
Kevin Owocki, one of the co-authors of EIP-6969, told Blockworks that his firsthand experience as a builder in the Web3 space made him aware of the difficulties involved in monetizing the products he had actively helped create.
There are really not that many opportunities to monetize in a way thats sustainable and not very speculative, Owocki said.
After learning about CSRs from the Canto Layer 1 network, a permissionless general-purpose blockchain, Owocki saw an opportunity to reward developers for their efforts sustainably and wanted to bring this idea into the EVM ecosystem.
On Ethereum Layer 2 solutions today, every transaction that calls a contract on the network sends a portion of the gas consumed to the sequencer as a fee.
EIP-6969 modifies this slightly by sending a portion of those gas fees to the developer of that smart contract as well.
When you deploy a contract onto the Ethereum network, the address you deployed that contract with would be attached to the contract, Owocki said. However much execution time EVM spends inside of your smart contract, thatll be mapped proportionally and a percentage of the fee revenue will return to that address.
Owocki notes that this new approach offers an opportunity to bridge the gap between Layer 2 solutions in need of more developers, and developers who are seeking avenues for generating revenue.
As Ethereum smart contracts are designed with composability in mind, Owocki believes that EIP-6969 could set up a strong foundation for the evolving open-source infrastructure that can expand the Ethereum ecosystem.
We have all these open-source lego bricks that exist in the Ethereum ecosystem, I as a hacker could walk into a hackathon and build something in a weekend that would have taken a bank 15 years ago $100 million to build because I can get so much software off the shelf, he said. So with EIP-6969, we really wanted to respect that modular architecture of the EVM.
This means that revenue will not just be given to a smart contract at the top execution level, but as you go down the stack, each contractor that has contributed to modifying the code will be given a portion of the revenue.
What this does is it incentivizes the creation of infrastructure, because people who might not have a business model right now are all of a sudden going to get more and more revenue as more people use their deployed version of [the smart contract], he said.
Every time an infrastructure is used, the gas fee trickles down to everyone who had participated in building the infrastructure, creating a reward loop that incentivizes more people to maintain open-source infrastructure.
CSR currently exists in the Canto ecosystem, Owocki notes. In the EVM ecosystem, the next step will be to wait for the EIP to be accepted by the community so that the development team can create a canonical spec for how it would operate in the Ethereum ecosystem.
Once that is complete, Owocki said that the next step would be to work with L2s to implement it into their ecosystems. This is expected to happen within the next six months.
The reason why we can move faster on this is because were deploying it to layer twos, he notes. This is not a specification that is meant for the Ethereum mainnet. Ethereum mainnet needs to be credibly neutral, and it needs to be capture resistant. I think its very important to prototype this on layer twos where the stakes are lower.
Get the days top crypto news and insights delivered to your email every evening.Subscribe to Blockworks free newsletternow.
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, cant-miss tweets and more fromBlockworks Researchs Daily Debrief.
Cant wait? Get our news the fastest way possible.Join us on Telegram and follow us on Google News.
Here is the original post:
This Ethereum Proposal Wants to Bring Revenue Back to Developers - Blockworks
- Bitcoin Smart Contracts and Apps: Do They Even Exist? - Ledger - November 26th, 2023 [November 26th, 2023]
- Smart Contracts: Understanding and Mitigating Vulnerabilities | by ... - Medium - November 26th, 2023 [November 26th, 2023]
- SingularityNET Joins With Dfinity Foundation for AI Models That Run on Smart Contracts - Decrypt - November 26th, 2023 [November 26th, 2023]
- What is Blast? Staking-focused L2 Attracts Over $400M in 3 Days ... - CCN.com - November 26th, 2023 [November 26th, 2023]
- Layer 2 and Rollups | by SMC Research | Nov, 2023 - Medium - November 26th, 2023 [November 26th, 2023]
- Could Bitcoin Spark Outperform Chainlink This Bull Run? - A Look ... - CryptoPotato - November 26th, 2023 [November 26th, 2023]
- Kaspa - The biggest gainer of 2023 that rose by 2,500% is just another Bitcoin knockoff - FXStreet - November 26th, 2023 [November 26th, 2023]
- Fan mail and ETH tips sent to KyberSwap hacker who stole $48M - Blockworks - November 26th, 2023 [November 26th, 2023]
- Could One of These 7 Innovations End Traditional Coding by 2024? - Medium - November 26th, 2023 [November 26th, 2023]
- Heres why ChatGPT expects Cardano to hit $10 by the end of 2024 - AMBCrypto English - November 26th, 2023 [November 26th, 2023]
- If Cathie Wood Is Bullish on Solana, Should You Be Too? - The Motley Fool - November 26th, 2023 [November 26th, 2023]
- Breaking Chains: Unleashing the Power of Blockchain Technology ... - Medium - November 26th, 2023 [November 26th, 2023]
- 3 of the biggest blockchain tech developments in 2023 - Blockworks - November 26th, 2023 [November 26th, 2023]
- Exploring the Legal Retail Compliance of Placeholder Tokens' Rent ... - Medium - November 26th, 2023 [November 26th, 2023]
- Blockchain in Insurance Market Size Worth USD 57.57 Billion in 2032 | Emergen Research - Yahoo Finance - November 26th, 2023 [November 26th, 2023]
- DAstra Network: Which Blockchains Are Best Suited For Launchpad? - Blockchain Magazine - November 26th, 2023 [November 26th, 2023]
- Unleashing the Potential: The Future of Bitcoin Cash and Its ... - Geeks World Wide - November 26th, 2023 [November 26th, 2023]
- Ethereum Classic shows resilience amid mixed crypto market ... - Investing.com - November 26th, 2023 [November 26th, 2023]
- Liquidity Management in Crypto Payment Gateways: Strategies for ... - Analytics Insight - November 26th, 2023 [November 26th, 2023]
- David Brunk On Revolutionizing Legal Trust Through Smart Contracts - hackernoon.com - November 22nd, 2023 [November 22nd, 2023]
- why Smart Contracts are living up-to their name & how we Benefit ... - Medium - November 22nd, 2023 [November 22nd, 2023]
- Deep learning-based solution for smart contract vulnerabilities ... - Nature.com - November 22nd, 2023 [November 22nd, 2023]
- Staying safe in web3: your guide to dapps security - crypto.news - November 22nd, 2023 [November 22nd, 2023]
- Utility at a cost: Assessing the risks of blockchain oracles - S&P Global - November 22nd, 2023 [November 22nd, 2023]
- The Risks of DeFi: Navigating the Complex Terrain of Decentralized ... - Baltic Times - November 22nd, 2023 [November 22nd, 2023]
- Sam Altman's OpenAI exit won't stop the use of ChatGPT among ... - Blockworks - November 22nd, 2023 [November 22nd, 2023]
- Embark on the NFT journey with @sar! | by Msquare | Nov, 2023 - Medium - November 22nd, 2023 [November 22nd, 2023]
- 3 Cryptocurrencies Under $25 That Are Up More Than 100% This ... - The Motley Fool - November 22nd, 2023 [November 22nd, 2023]
- Friend.tech Total Value Locked Plummets 19% in One Weekend As New User Count Stays Flat: On-Chain Data - The Daily Hodl - November 22nd, 2023 [November 22nd, 2023]
- Libertum Launches Innovative Real Estate Investment Platform: Democratizing Property Investment - Yahoo Finance - November 22nd, 2023 [November 22nd, 2023]
- Crypto in the Real World: Practical Applications of Blockchain ... - Medium - November 22nd, 2023 [November 22nd, 2023]
- Avalanche gets the 'Ordinals' bump, sets new transaction record - Blockworks - November 22nd, 2023 [November 22nd, 2023]
- Web3 Identity: Why You Can't Get a Crypto Job - Medium - November 22nd, 2023 [November 22nd, 2023]
- Check Point Research Unraveling the Rug Pull: a Million-Dollar ... - Check Point Research - November 22nd, 2023 [November 22nd, 2023]
- JPMorgan Chase, Siemens, and FedEx show that blockchain finance is more than a buzzword - Fortune - November 22nd, 2023 [November 22nd, 2023]
- Brief Introduction to Blockchain Security Audits - LCX - November 22nd, 2023 [November 22nd, 2023]
- Bitcoin leads NFT market with surge in BRC-20 token sales By ... - Investing.com - November 22nd, 2023 [November 22nd, 2023]
- The Top 10 Crypto Projects That Are Making a Difference - Baltic Times - November 22nd, 2023 [November 22nd, 2023]
- "NFT DApps: Redefining Digital Asset Ownership in the Blockchain ... - Geeks World Wide - November 22nd, 2023 [November 22nd, 2023]
- Blockchain-Ads Goes Live on Partisia Blockchain, Redefining Digital ... - Newswire - November 22nd, 2023 [November 22nd, 2023]
- Bitget Wallet Debuts Task2Get, a Web3 Exploration Incentive Platform, with ZetaChain Interactive Campaign - Yahoo Finance - November 22nd, 2023 [November 22nd, 2023]
- Analysts: this memecoin could outperform Ethereum and Cardano in ... - crypto.news - November 22nd, 2023 [November 22nd, 2023]
- Moonriver (MOVR) Rises 31.65% Tuesday: What's Next for This Very Bullish Rated Crypto? - InvestorsObserver - November 22nd, 2023 [November 22nd, 2023]
- Cogwise is Revolutionizing Blockchain and AI, Hits $1 Million - Cryptonews - November 22nd, 2023 [November 22nd, 2023]
- 3 Cryptos to Buy Before the Next Bull Market Sparks 10x Gains - InvestorPlace - November 22nd, 2023 [November 22nd, 2023]
- DAOs Would Flourish in Business with More Lawyer Participation - Bloomberg Law - October 30th, 2023 [October 30th, 2023]
- Understanding Blockchain and Smart Contracts - The Daily Hodl - October 30th, 2023 [October 30th, 2023]
- POL Contracts Go Live on Ethereum Mainnet as Part of Polygon 2.0 - CoinDesk - October 30th, 2023 [October 30th, 2023]
- Horizen EON: Unleashing the Power of Web3 with Smart Contracts - Geeks World Wide - October 30th, 2023 [October 30th, 2023]
- Blockchain interoperability solutions and challenges: Where are we ... - Finextra - October 30th, 2023 [October 30th, 2023]
- How B2B data sharing can be improved with blockchain technology - San Mateo Daily Journal - October 30th, 2023 [October 30th, 2023]
- As XRP and Ethereum Rebuild, Traders Look to This New AI Altcoin for Hope - Yahoo Finance - October 30th, 2023 [October 30th, 2023]
- Ethereum vs. Binance Smart Chain: Where to Make More Money - Medium - October 30th, 2023 [October 30th, 2023]
- Vodafone DAB and Chainlink Labs Demonstrate the Transformation ... - Vodafone - October 30th, 2023 [October 30th, 2023]
- ICP Price Analysis as Internet Computer Canisters and blocks rises - BanklessTimes - October 30th, 2023 [October 30th, 2023]
- Blockchain and energy trading: Disrupting the power sector with decentralised systems - The Financial Express - October 30th, 2023 [October 30th, 2023]
- 60% of Cryptocurrency Holders Unfazed by Lack of Regulation - BanklessTimes - October 30th, 2023 [October 30th, 2023]
- Chainlink Proof Of Reserve Now Active For Backeds Tokenized Real-World Assets | Crowdfund Insider - Crowdfund Insider - October 30th, 2023 [October 30th, 2023]
- Bitcoin Mining vs. Ethereum Mining: Finding Your Path to Profits - Baltic Times - October 30th, 2023 [October 30th, 2023]
- AI systems favor sycophancy over truthful answers, says new report - CoinGeek - October 30th, 2023 [October 30th, 2023]
- More than MiCA: EU's Governing of Smart Contracts Will Need Even ... - CCN.com - October 16th, 2023 [October 16th, 2023]
- The Intersection of Radiology With Blockchain and Smart Contracts ... - Cureus - October 16th, 2023 [October 16th, 2023]
- How Blockchain Technology Is Being Used To Transform The ... - BanklessTimes - October 16th, 2023 [October 16th, 2023]
- IOTA to Have One More Stablecoin: What is USPlus? - U.Today - October 16th, 2023 [October 16th, 2023]
- On-Chain Tracker Notices Major Difference Between Bitcoin And ... - NewsBTC - October 16th, 2023 [October 16th, 2023]
- Coinbases security team has fought crypto hackers for a decade: Heres what has to change - Fortune - October 16th, 2023 [October 16th, 2023]
- Redefining Crypto Standards with Bitcoin Spark, Avalanche, Stellar ... - CryptoPotato - October 16th, 2023 [October 16th, 2023]
- SALT (SALT), High Volatility and Falling Sunday: Is it Time to Cash Out? - InvestorsObserver - October 16th, 2023 [October 16th, 2023]
- 'Tokenised' assets could save markets $17b a year: RBA - The Australian Financial Review - October 16th, 2023 [October 16th, 2023]
- What is blockchain network congestion? - Cointelegraph - October 16th, 2023 [October 16th, 2023]
- Japanese tokenized deposit network DCJPY to launch mid-2024 - Ledger Insights - October 16th, 2023 [October 16th, 2023]
- Citi goes live on 2 smart contract platforms for stocks, syndicated loans - Ledger Insights - October 12th, 2023 [October 12th, 2023]
- Coinbases security team has fought crypto hackers for a decade: Heres what has to change - Yahoo Finance - October 12th, 2023 [October 12th, 2023]
- ESMA assesses market developments in DeFi and explores the ... - ESMA - October 12th, 2023 [October 12th, 2023]
- Binance to List Neutron (NTRN) with Seed Tag to Enable Mainstream Adoption of Interoperable Smart Contracts - Coinspeaker - October 12th, 2023 [October 12th, 2023]
- AnChain.AI and BlockTrace Join Forces to Provide Cutting Edge Solutions to National Security Sector Partners - Yahoo Finance - October 12th, 2023 [October 12th, 2023]
- OpenZeppelin excludes isContract, urging ecosystem evolution By ... - Investing.com - October 12th, 2023 [October 12th, 2023]
- Crypto token ether could rise five-fold by end-2026, StanChart says - Reuters.com - October 12th, 2023 [October 12th, 2023]
- What is tokenization? - McKinsey - October 12th, 2023 [October 12th, 2023]
- Leading innovators in digital contract governance for the technology ... - Verdict - October 12th, 2023 [October 12th, 2023]