Fantom Blockchain to Return 15% of Gas Fees to Boost Network Usage – Here’s What You Need to Know
The Fantom (FTM) blockchain has introduced a new initiative called the “dApp Gas Monetization Program,” aiming to reward projects that utilize its network and contribute to increased gas fee usage.
The new program, which recently received community support through a governance vote, seeks to redirect a portion of Fantom’s network fees directly to decentralized applications (dApps) that are being built on the platform.
Now that the new program has been implemented, eligible applications will receive 15% of the gas fees they generate, providing developers with an additional source of income, the team behind Fantom announced over the weekend.
According to the team, the program will encourage the development of high-demand applications, retain developers, and foster a thriving ecosystem on its blockchain platform.
By reducing Fantom’s burn rate from 20% to 5%, the program aims to drive increased demand for block space and support the network’s infrastructure.
Among those who shared the news was Fantom co-founder and DeFi veteran Andre Cronje.
“Next step towards the decentralized web,” Cronje, who previously founded the DeFi protocol Yearn Finance (YFI) and is known for his love/hate relationship with DeFi, wrote to his 384,000 Twitter followers on Sunday:
Gas Subsidies, social auth, FVM, and next gen storage solution on the horizon.
— Andre Cronje (@AndreCronjeTech) May 28, 2023
Soon after Fantom can unlock apps that arent just financial.
Next step towards the decentralized web. https://t.co/3kv5DAFGX5
Gas fees are paid by blockchain users in the chain’s native token, in this case FTM, and contribute to the overall costs of operating on the platform.
Although fees on Fantom are relatively low, they do add up over time, negatively impacting users of Fantom-based projects.
“A steady source of income”
Commenting on the implementation of the fee rewards program, the Fantom Foundation’s Director of Business Development, Sam Harcourt, said decentralized application developers on Fantom can look forward to “quite a steady source of income.”
He added that the program means application developers can avoid having to raise capital from “mercenary VCs who will give them terrible valuations or having to do some sort of token launch […] which can be a little bit risky.”
Bringing the next wave of users starts with rewarding dApp developers 🌊
— Fantom Foundation (@FantomFDN) May 29, 2023
Over the long-term, gas monetization acts as a sustainable income pathway to successful applications on #Fantom ⛽
Check it out: https://t.co/Ivl1VPKewH pic.twitter.com/JjuLEyb7F6
Notably, the implementation of the gas monetization program has already shown promising results, with cross-chain bridge Stargate Finance receiving 8,300 FTM (worth over $2,700), and decentralized exchange SpookySwap earning 978 FTM (approximately $330) within hours of the program’s launch.
Rewards can be claimed by going to earngas.fantom.network.
