Increase Operator Commission Rate for MilkyWay Rollup

1. Background

This proposal seeks to modify the Operator Commission Rate parameter for the MilkyWay Rollup. The motivation behind this change is to align economic incentives and ensure long-term growth and sustainability of MilkyWay rollup and milkINIT.

The existing commission rate was initially set at 10% during launch to encourage early participation and bootstrapping.

However, as the network matures and with multiple rollups now participating in the Initia VIP program with higher commission rates, it is now appropriate to update this parameter to remain competitive and sustainable.

2. Parameter Changes

Parameter Current Value Proposed Value
Operator Commission Rate 10% 20%

These changes will be applied after a review from the Initia Review Committee.

3. Rationale

These parameter changes are intended to:

  • Ensure long-term sustainability of MilkyWay – A 20% commission aligns with current norms across other VIP-eligible rollups and creates economic room for operational growth.

  • Support the growth of milkINIT adoption – Improved operator incentives create a positive flywheel that can indirectly contribute to further bribing mechanisms and activity around milkINIT.

  • Maintain parity across the Initia ecosystem – Most of the rollups in the VIP program already operate at 20% commission. Matching this rate helps preserve a level playing field and avoids undercutting while ensuring viability for rollup operators.

These updates are designed to better serve rollup economics while respecting the broader incentive alignment within the Initia ecosystem.

We welcome feedback and discussion from the community on this proposal. Please feel free to share your thoughts and suggestions below.

Thanks !

Appreciate the update! I believe if you update now this will apply to Epoch 8.

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