The Ethereum community is discussing a new fee structure proposal called EXECUTE-precompile aimed at improving network security through Layer 2 app activity.
EXECUTE-precompile Proposal
The EXECUTE-precompile proposal focuses on ensuring Layer 2 apps contribute to Ethereum's security. According to Ethereum developer Herminator, "The EXECUTE-precompile could be Ethereum's key to ensuring that L2 activity eventually funnels meaningful fees back to L1. By requiring upfront registration and continuous verification through the FDC-contract, rollups have no choice but to pay for the robust security Ethereum provides." The proposal aims to adapt the network's economic model in light of growing Layer 2 adoption.
Anticipated Changes in Layer 2 Economics
Community members and developers are actively discussing the proposal on Ethereum forums, indicating heightened interest and concern over Ethereum's economic future. Expected impacts include improved economic resilience for ETH holders and stakers, as well as potential shifts in Layer 2 app cost structures. Previous proposals, such as EIP-4844, have historically influenced fee-related dynamics and user activity.
Lessons from Previous Proposals EIP-4844
Past Ethereum upgrades like EIP-4844 demonstrated that reducing user fees can initially lead to a drop in ETH prices due to decreased network fee revenues. Historical patterns provide insight into probable responses and outcomes. Experts emphasize the need for sustainable fee models to ensure long-term asset value and security, viewing this proposal as a strategic shift aligned with past economic adjustments.
The EXECUTE-precompile proposal represents a significant move toward enhancing the financial sustainability of Ethereum and its Layer 2 ecosystem, offering new means of ensuring long-term security for the network.
