Denkun is about stabilizing payments, not reducing them – the founder of oil

Considered to be the biggest update since the merger, the Ethereum Denkun hard fork was released on the mainnet on March 13.

While most people are focused on the transaction fee reductions promised for Layer-2 metering networks, the biggest benefit of the reform is actually fee stabilization, Fuel Lab founder and CEO Nick Dodson told Cointelegraph in an exclusive interview:

“On the point of EIP-4844, a lot of people talk about fee cuts, but it's more about fee stabilization. It's not about expanding capacity and scale and lowering fees.

Some Ethereum L2s saw a 99% average transaction fee drop after the update went live, including Starknet, Optimism, Base, and Zora OP mainnet.

Denkun's upgrade payment for L2s is a big bonus for the industry, but the main benefit is related to the mass expansion of the network and the stabilization of current payments for the next millions of new users, Dodson. This increase in network capacity will reduce Layer-2 charges with future upgrades, he added.

“Now when we add more data hashing capacity, the dynamic changes, and not only is it more capacity, but it's probably much cheaper in terms of data availability.”

The Denkun hard fork included nine different Ethereum Improvement Proposals (EIPs). The first part of Cancun is focused on improving how transactions are managed and at the executive layer, while the second part Deneb aims to improve consensus, which refers to how network participants agree on the state of the blockchain.

According to Dodson, the upgrade will greatly increase the overall scalability and functionality of the Ethereum network.

Now that Ethereum is on a trajectory to serve more users around the world… we're finally getting closer to actually adding practical, meaningful improvements beyond the package. Layer-1 is finally increasing its capacity to serve many different types of rolls and different types of performance.

Following the update, the price of Ether (ETH) fell by 2.44% to trade at $3,956 in the 24 hours to 11:30 am UTC, according to CoinMarketCap data.

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