Fantom Blockchain Returns 15% of Gas Fees to Boost Network Usage – Here’s What You Need to Know

Fantom Blockchain Returns 15% of Gas Fees to Boost Network Usage – Here’s What You Need to Know

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Fantom Blockchain Returns 15% of Gas Fees to Boost Network Usage – Here’s What You Need to Know
Source: Adobe Stock / sunilpurushe

The Fantom (FTM) blockchain has introduced a new initiative called the “dApp Gas Monetization Program”, which aims to reward projects that exploit the network and contribute to the increased use of gas fees.

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) being built on the platform.

Now that the new program is implemented, eligible applications will receive 15% of the gas fees they generate, giving developers an additional source of revenue, 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.

“The 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 fees are paid by blockchain users in the chain’s native token, in this case FTM, and contribute to the overall cost of operating on the platform.

Although the fees on Fantom are relatively low, they increase over time, which negatively affects users of Fantom-based projects.

“A steady source of income”

Commenting on the implementation of the fee reward program, the Fantom Foundation’s director of business development, Sam Harcourt, said that decentralized application developers on Fantom can look forward to “a fairly stable source of income.”

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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 kind of token launch […] which can be a bit risky.”

In particular, the implementation of the monetization program has already shown promising results, with the cross-chain bridge Stargate Finance receiving 8300 FTM (worth over $2700), and the decentralized exchange SpookySwap earning 978 FTM (about $330) within hours of the program’s launch.

Rewards can be claimed by visiting earngas.fantom.network.

[gpt3]

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