Vitalik Buterin Proposes Balanced Fee Structure for Ethereum’s Layer 1 and Layer 2 Solutions

• Ethereum aims to stabilize fees across Layer 1 and Layer 2 to reduce unpredictable transaction costs.
• Vitalik Buterin suggests starting with EIP-7762 and based rollups to improve fee distribution reliability.
• Ethereum transaction fees have surged recently, with the median fee rising over 400% to $2.25.

Ethereum co-founder Vitalik Buterin emphasized the need for a balanced and predictable fee structure across Layer 1 (L1) and Layer 2 (L2) solutions. This move, he argued, would stabilize the Ethereum (ETH) ecosystem and protect users from volatile fees. Various fee-sharing models, according to Buterin, may offer solutions to shield the community from inconsistent transaction costs.

Addressing Fee Distribution Challenges

Vitalik Buterin highlighted that the current unpredictability of total fee rates, whether in L1 or L2, poses a significant issue for users. He suggested that Ethereum should adopt mechanisms that ensure the fee accrual from both layers remains consistently reliable and far from zero. This would help maintain a low variance between the fees for L1 and L2 validators, enhancing user satisfaction. Buterin pointed out that this challenge spans technical, economic, and cultural facets within Ethereum.

Vitalik’s Proposed Solutions to the Debate

In his recent remarks, Buterin referred to two potential solutions that could serve as starting points in resolving this issue. One is EIP-7762, which was introduced in August 2024 to address pricing for Ethereum’s “blobs,” making their fees more predictable. The other is based on rollups, a class of L2 solutions aligned with L1’s economic rules. Both strategies are seen as valuable options in the broader debate over fee distribution within the Ethereum ecosystem.

Surge in Ethereum Fees

While the discussion around fee structures heats up, Ethereum’s transaction fees have seen a notable surge after several months of decline. Data from BitInfoCharts shows that the average Ethereum fee tripled over the past month, while the median transaction fee spiked by over 400%, reaching $2.25.