Vitalik Buterin emphasizes the need for a stable, predictable fee structure for Ethereum’s Layer-1 and Layer-2 solutions.
Ethereum co-founder Vitalik Buterin has emphasized the need for a balanced and predictable fee structure for both Layer-1 (L1) and Layer-2 (L2) solutions on the Ethereum network. In a recent statement, Buterin explained that the Ethereum ecosystem must avoid drastic fee fluctuations. This fluctuation can cause instability and confusion for users.
Buterin also noted that the discussion about the Ethereum fee structure changed in the past year. Layer-1 was accused of charging “rent” to Layer-2 networks earlier. However, people are worried about the fees that Layer-2 networks are charging. Buterin also cautioned against developing a mixed economy, where the fee rates could go from as low as 5% to as high as 95% based on some factors. That kind of volatility, he said, could negatively impact the Ethereum ecosystem and its participants.
To this end, Buterin proposed that Layer-1 and Layer-2 solutions should have stable and low-variance fee models. This would guarantee that every user of the Ethereum ecosystem, whether on Layer-1 or Layer-2, could transact with a stable fee structure. In Buterin’s view, this stability is solved by considering the three aspects of economics, technology, and culture in the Ethereum space.
Vitalik Buterin Discusses EIP-7762 to Address Ethereum Fee Volatility
Buterin also discussed two potential solutions to improve fee predictability: EIP-7762 and based rollups. EIP 7762 was proposed in August 2024. It intends to enhance the pricing structure of blobs and overcome the problems associated with “price discovery” fees. Based rollups are Layer-2 solutions with economic rules closer to the Ethereum Layer-1 network, which might bring more stability to the fees.
This is especially important now that the Ethereum transaction fees have recently surged. In the past 30 days, the average cost for Ethereum has risen to triple its lowest point after months of decline. Per BitInfoCharts, the average fee has increased by more than 400% and is now at $2.25 for the median transaction fee.
Lastly, Buterin’s comments show that a more stable fee structure on Ethereum is needed as both L1 and L2 solutions are continually developed.
