Dear community, I looked at both Category-based and Formula-based models and found a destructive issue with both. The root issue The scheme is too logarithmic** and the average fee per IP ranges 5744 times! * The issue leads to the following consequences. Consequence one - market competition Members with fewer addresses should pay a significant share of their income to RIPE. There are many services in the EUR10 or less category in Bulgaria, Romania, and other countries. Small /24 operators should spend at least 4.47% of their income on RIPE fees alone. A prominent /8 owner will spend 0.00001% of that income. The ratio of 5,743 is significant. Consequence two - delaying the move to IPv6 Given the significant historical IPv4 address space, larger companies have fewer reasons to switch to IPv6. If we agree to further multiply this advantage, there will be fewer and fewer economic reasons to switch to IPv6. Consequence three - possible reduction in the number of LIRs With ratios of up to 5,743 times the fees per IP, one can expect the consolidation of LIR accounts to continue. Renting small blocks will be preferable to acquiring them. We already suffer from the declining number of LIR accounts. A decision that leads to future consolidation may require additional rebalancing in the coming years. Possible solutions * Better-balanced fees, with wider boundaries in both directions. A difference of no more than 256 times in per-ip fees. * A fee reduction for big entities if they return address space to RIPE. This reduction will actually pay off by reducing IPv4 queue wait time and, therefore, increasing the number of new members. Best Regards, Alexander * 5744 is calculated by dividing the minimum fee per IP for /8 by the cost for /24. It could be up to 11,487 in case the address space is close to /7 IPv4 CIDR Max fee/ IP Discount from /24 /24 to /23 3.41016 0.00% /23 to /22 2.47656 27.38% /22 to /21 1.64746 51.69% /21 to /20 1.03906 69.53% /20 to /19 0.63306 81.44% /19 to /18 0.37598 88.97% /18 to /17 0.21918 93.57% /17 to /16 0.12585 96.31% /16 to /15 0.07143 97.91% /15 to /14 0.04013 98.82% /14 to /13 0.02237 99.34% /13 to /12 0.01237 99.64% /12 to /11 0.00681 99.80% /11 to /10 0.00372 99.89% /10 to /9 0.00203 99.94% /9 to /8 0.00110 99.97% /8 to /7 0.00059 99.98%