The Ethereum developers propose a scaling solution that enables dApps to share transaction fee revenue generated on Layer 2. EIP-6968 suggests introducing a token mechanism called contract-secured revenue (CSR), allowing developers to receive a portion of transaction fees generated by users interacting with their smart contracts.

According to Kevin Owocki, one of the co-authors of the proposal, CSR would enable new projects to join and build on Layer 2, sharing sequencer fee earnings based on user activity. If adopted, this concept would provide smart contract developers on Layer 2 with a viable income stream.

These new revenue streams could support dApp development, public goods funding, and incentivize developers to participate in the network. Introduced in May 2023, EIP-6968 gained momentum after Owocki presented it at the EthCC seminar in Paris.

With Layer 2 rollups emerging as Ethereum's primary scaling solution, key Layer 2 players like Arbitrum, Polygon, and zkSync are collaborating to establish frameworks for Layer 3 networks. Owocki sees EIP-6968 as a step beyond app chains, catering to ecosystem chains.

The proposed scaling solution is an iteration of EIP-1559, which introduced Ethereum's fee burn mechanism in August 2021. The authors suggest that any network using EIP-1559 could also leverage EIP-6968.

Using protocol rewards from Layer 1 to fund smart contract development could be a significant development. Owocki believes it will be interesting to see how this impacts the Layer 2 ecosystem and smart contract developers' earnings.