Ethereum developers have proposed EIP-7999, a critical upgrade focused on simplifying transaction fee mechanisms by introducing a unified fee market. This reform would allow users to set a single maximum fee for transactions, enhancing cost predictability and capital efficiency on the network. The initiative builds upon the substantial improvements delivered by the Dencun upgrade implemented in 2024, which dramatically reduced average gas fees by 95% – lowering costs from $86 to $0.39 per transaction and significantly boosting network throughput.
Despite rising competition, Ethereum maintained its dominance in blockchain transaction fee revenue during 2024, generating $2.48 billion. This represented a 3% year-over-year increase. Notable competitors saw accelerated growth: Tron doubled its annual fee revenue to $2.15 billion, while Solana recorded a remarkable 2,838% surge to $750 million over the same period.
The foundational Dencun upgrade incorporated nine Ethereum Improvement Proposals (EIPs) addressing scalability challenges, with a focus on reducing costs for layer-2 solutions. The new EIP-7999 proposal now aims to further optimize Ethereum’s fee architecture by consolidating payment structures and improving user experience.