Fantom will reward projects that utilize its network and contribute toward high usage of gas fees in a bid to drive increased demand for block space, developers said Sunday in a tweet.
Fantom Will Pay Back 15% of Token Fees to Some Projects
According to developers, Fantom blockchain plans to incentivize projects that utilize its network and contribute to higher gas fee usage, with the aim of driving increased demand for block space.
In a tweet on Sunday, it was announced that eligible applications will receive a reward equivalent to 15% of the gas fees they generate, providing developers with additional income.
This initiative, known as the “dApp Gas Monetization Program” was approved through a community governance vote earlier this year.
The proposal’s objective was to decrease Fantom’s current burn rate in order to allocate more network fees directly to applications built on Fantom. With the passing of the vote, the implementation will reduce Fantom’s burn rate from 20% to 5%, redirecting the remaining 15% towards gas monetization.
This gas monetization approach aims to reward popular applications, retain developers, and support Fantom’s network infrastructure. Gas refers to the fee paid by users of a blockchain in the native token of that blockchain, such as Fantom (FTM) in this case.
Although fees on Fantom are typically small fractions of a few cents per transaction, they accumulate over time and are shouldered by users of Fantom-based projects. Data indicates that some projects have already started benefiting from the monetization program shortly after its implementation on Sunday.
Stargate Finance, a cross-chain bridge, received 8,300 FTM tokens, which is valued at slightly over $2,600 based on the current prices. Similarly, SpookySwap, a decentralized exchange, gained 978 FTM tokens, equivalent to a little over $300.
To access more crypto news: cryptodataspace.com
%s Comment