Fantom Allocates 15% of Token Fees to Support Selected Projects
In a tweet on Sunday, developers of the Fantom blockchain expressed their intention to reward projects that leverage its network and actively contribute to the increased utilization of gas fees. This strategic move aims to stimulate a surge in demand for block space, ultimately fostering a more vibrant ecosystem.
Developers will receive a 15% reward in gas fees for eligible applications, granting them an additional source of income.
This initiative is a result of the "dApp Gas Monetization Program," which was approved through a community governance vote earlier this year as part of a strategic plan.
The aim of the proposal was to decrease Fantom's current burn rate, thereby channeling a greater portion of network fees towards applications being developed on the Fantom platform. With its successful approval, the implementation will lower Fantom's burn rate from 20% to 5%, allowing the remaining 15% to be redirected towards gas monetization.
This gas monetization will not only provide incentives for popular applications but also encourage developer retention, ultimately bolstering Fantom's network infrastructure.
Gas refers to the fees that blockchain users pay in the native token of that blockchain, in this case, Fantom (FTM). While fees on Fantom are small fractions of a few cents per transaction, they accumulate over time and become a substantial burden on users of Fantom-based projects.
The data indicates that several projects have already started reaping the benefits of the monetization program within just a few hours of its implementation on Sunday.
Cross-chain bridge Stargate Finance has received 8,300 FTM, equivalent to a value slightly above $2,600 at the current market prices. Meanwhile, the decentralized exchange SpookySwap has earned 978 FTM, which amounts to just over $300.
