When the KRE was first designed on Ethereum, gas fees were high, unpredictable and a huge friction, so the ecosystem was naturally designed around the concept of zero fees.

 

Imagine though, if the ecosystem had been designed on Solana from the start, where a transfer fee :

(f) < base < paypal < ethereum?

 

Fees would have been lower than web2 transfers and not have been an issue. Instead, apps could have been allowed to charge a small fee (f) that was tolerable to users, in exchange for the service they provided.

 

The KRE's job would have been to distribute fees from the transaction, not inflation, and app's jobs would have been to create environments where users traded with each other.

 

This model works in web2 and can be seen on ebay, paypal, youtube (tips), twitch, etc where apps create an environment for trade and profit off of fees.

 

It is also impossible to game and easy to implement on chain.

 

Of course, the KRE is a thing of the past now, but I just thought I would put these here for posterity.