According to Cointelegraph, Fractal Bitcoin is a sidechain scaling solution that uses the Bitcoin Core code and may provide miners with an additional source of income, but it may also cut into miners’ income.

According to TheMinerMag, Fractal Bitcoin merges mining with Bitcoin, allowing miners to mine at the same time without changing equipment. This is a way for miners to increase profits after the halving.

However, Fractal Bitcoin supports the BRC-20 token standard, which could reduce transaction fees on the Bitcoin network, thereby reducing miner profits.

Although the craze for Bitcoin Runes, ordinals, and BRC-20 tokens has faded, these tokenized assets still provide a significant income for miners. After the April 2024 halving event, Bitcoin Runes contributed 1,200 BTC in network fees to miners that month.

Since then, Bitcoin Runes has generated about $162.4 million in fees, excluding ordinals and other tokenized assets.

If Fractal Bitcoin and other Bitcoin Layer-2 solutions are successful, it could lead to a similar situation to Ethereum’s Layer-1 revenue collapse, which has seen Ethereum network fees fall dramatically since the Dencun upgrade in March 2024, reducing Layer-1 revenue by 99%.