Opinion: Shared sorter fees will attract developers to the application layer

Written by Jarrod Watts, Developer Relations Engineer, Polygon Labs

Compiled by: Luffy, Foresight News

My prediction: By 2024, we will start to see more Web3 developers building at the application layer.

Why? Because of shared sequencer fees.

The following is my opinion L2 How to get started with DApp Developers share insights into their sorter profitability:

Nowadays, most L2 Both run centralized sorters.

Centralized sorters typically charge users a fee as revenue and take a percentage of that revenue as profit.

• + Income:L2 transaction fees charged

• – Cost: Send transaction data back to L1 (Ethereum)

• = Sorter Profit: Remaining.

This sounds simple because it doesn't take into account factors outside of the sequencer, such as issuing ZK proofs or failure proofs. In terms of sequencers alone, L2 running them is often a profitable operation.

For example, according to @DefiLlama, the Arbitrum sorter over the past 24 hours:

• + Charged users $213,274

• – Cost of sending transaction data to L1 is $147,237

• = Profit $66,037

Here are the definitions of these terms:

• Fee: The transaction fee paid by the user to the sorter

• Revenue: ETH received from users minus the cost of sending data to L2

Sometimes, this profit does go back to the developer who generated these gas fees, such as Optimism's RetroPGF.

However, these are not defined on-chain and are allocated to developers in one go over months or years.Xiaobai NavigationIt also relies on off-chain social systems.

So what is the shared sorter fee, and how does it solve the problem?

Distribute sorter profits to developers

Shared orderer fees are designed to redistribute orderer profits to on-chain DApp Developer. This was first proposed by Blast (if I'm not wrong).

According to their documentation, Blast “redirects sequencer fees to the DApp that incurred those fees.”

This means that Blast's orderer charges gas fees from users and redistributes them to the developers behind the DApps that generate those fees.

as intelligencecontractDevelopers can call Blast Intelligencecontractfunction on "configureClaimableGas" to select yourcontractTo receive fees:

Then, you can claim your portion of the Gas fee generated by the contract at any time by calling another function "claimAllGas":

Mode Network (built on the OP stack) also achieves this through "SFS" (Sequencer Fee Sharing).

It works almost exactly like Blast, you first register the smart contract to the model contract by calling the "register" function.

Once registered, the NFT will be minted into yourwalletmiddle. Once your contract has incurred fees, you can provide your NFT by calling the "Withdraw" function Token ID, withdraw funds from the model contract.

Similar incentives

A similar alternative is “DApp Stake” like Astar Network (built on Polygon CDK).

DApp Stake As the name suggests, users can stake theirTokenStaking into specific DApps they want to support.

Each block sends a portion of the reward back to the DApp the user staked.

From their documentation: “Every block on the network, a portion of the reward is allocated to the DApp staker”… “The reward is then divided between the DApp’s operator (developer) and the nominator” .

risk

When you tie incentives to the amount of gas a smart contract spends, developers are indirectly incentivized to make their contracts spend as much gas as possible.

This can lead to developers sending unnecessary transactions to the network or performing unnecessary expensive operations within functions.

The loser in this case is the user, who may end up paying more gas than they otherwise need because the developer wants to make more money.

Conclusion

This is an idea that excites me because it means it's possible for application developers to build DApps that are free to use (gas fees are still required) and still make a profit.

For many Web3 applications, it doesn't make sense to charge users to make a profit. There are few incentives for Web3 adoption other than grants to build public goods and infrastructure.

But starting now, that will change.

Imagine a social DApp without a business model. They're just running a fun app that users enjoy. It generates a lot of traffic and consumes gas like crazy on the L2 they built.

By choosing such a shared sorting fee system, part of the Gas spent by users through smart contracts can be recovered from the network and fed back to developers.

Developers can focus on increasing product usage by providing value to users, rather than worrying about keeping the lights on.

This money can be used to reward developers in proportion to the usage of the DApp throughout its life cycle.

In my opinion, one of the reasons for the lack of innovation in Web3 at the application layer is that developers have less incentive to build at the application layer than at L2.

These systems could be the beginning of incentivizing developers to build at scale at the application layer.

The article comes from the Internet:Opinion: Shared sorter fees will attract developers to the application layer

Related recommendations: InscriptionTokenThe essence of SFT

This article details the nature and valuation model of inscriptions as a third form of token. Written by: CaptainZ Before the Summer of Inscription, everyone was speculating on which track the bull market would start, social, gaming, or ZK? There should be no suspense now. There is no doubt that it is the "inscription". However, how to treat "inscription" seems to be a confusing thing, build...