If successful, this proposal will increase the developer_shares parameter in the revenue module from 50% to 95%. The remainder 5% is to prevent spam.
Motivation
The
x/revenue
module enables Evmos to support splitting transaction fees between validators/delegators and smart contract developers. As a part of the Evmos Token Model, this mechanism aims to increase the adoption of Evmos by offering a new stable source of income for smart contract developers. Developers can register their smart contracts and every time someone interacts with a registered smart contract, the contract deployer account or their assigned withdrawal account receives a part of the transaction fees. The developer_shares parameter is the percentage of the transaction fees that are sent to the contract deployer.
Considering the low transaction costs on Evmos the current 50/50 split of EVM tx fees between smart contract developers and validators is insufficient to provide meaningful cash flows for dev teams. An increase to 95% would create more incentives for developers to deploy and register smart contracts on Evmos.
We acknowledge the fact that this change alone might not be significant to sustain developer teams in the short term and are exploring additional alternatives to continue incentivizing teams to build on Evmos in the mid-term.
If this proposal passes validators and delegators will earn zero fees for EVM transactions with registered contracts, but will still earn the commission on staking rewards and 95% of the fees from other Cosmos transactions (eg: IBC, Staking, etc).
Our goal with this proposal is to attract and retain smart contract developers as they are the backbone of the Evmos ecosystem and to provide a means to generate sustainable revenue for projects.### Impact
Registered smart contracts will receive 95% of the EVM transaction fees if this proposal passes.
Below are some calculations that might give a clearer example of what developers can expect:
At current Evmos price ($0.40637) and minGasPrice (20000000000aevmos) for 200,000 transactions with a smart contract: $0.00466466 * 200000 txs * 0.95 = $886.29
At Evmos price ($2) and minGasPrice (20000000000aevmos) for 100,000 transactions with a smart contract: $0.01669652 * 100000 txs * 0.95 = $1,586.17
At optimistic Evmos price ($4.50) minGasPrice (20000000000aevmos) for 50,000 transactions with a smart contract: $0.03756717 * 50000 txs * 0.95 = $1,784.43
Gas price calculations were generated with this calculator. Developers can change the variables to estimate how much revenue their dApps can generate.
