Share this article
Fantom Blockchain to Fund Ecosystem Projects Using Portion of Burnt FTM Fees
The fund is aimed at empowering builders on Fantom by offering a decentralized avenue for funding projects, ideas and creations through a community-driven decision process.
Updated Jan 20, 2023, 4:24 p.m. Published Jan 20, 2023, 1:54 p.m.
Make us preferred on Google
In this article
Fantom has released a decentralized vaults product to fund projects and applications that are building on its blockchain, developers said Friday.
Called Ecosystem Vault, the project is an on-chain fund financed by 10% of the transaction fees on Fantom and controlled by the community. The initiative was made possible by decreasing the burn rate of FTM and redirecting the resulting 10% to the vault.
STORY CONTINUES BELOW
CoinDesk previously reported on Fantom’s community governance decision to fund ecosystem projects using a portion of the fees.
“The Vault represents a valuable opportunity for projects to secure funding in their efforts to build innovative dApps on Fantom,” developers said. “It’s also a chance for the Fantom community to come together and shape the future of the platform through their funding decisions.”
Token burning means removing coins from the overall supply of a cryptocurrency by sending those tokens to a wallet that can only receive them.
Any proposal must receive at least 55% approval from the community to be funded, with at least 55% of FTM stakers in attendance. For the initial launch of the Vault, there will be only five projects receiving payments at any one time.
Payments will initially be executed manually via the Fantom Foundation, using tools such as LlamaPay, to fund projects whose proposals are approved by the Ecosystem Vault.
Developers say community members must add vesting periods to the payments to ensure project founders are incentivized to work continuously, instead of receiving the payments all at once and possibly losing interest.
Risks outlined by the now-passed proposal include malicious approvals of projects requesting funds from the Ecosystem Vault, influential entities or groups funding themselves or promoting projects they control and a project that overpromises and cannot deliver with the received funds.
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
MegaETH mainnet to go live Feb. 9 in major test of ‘real-time’ Ethereum scaling
This follows its October 2025 $450 million token sale that was heavily oversubscribed.
What to know:
- MegaETH, the much-watched high-performance Ethereum layer-2 network, announced that its public mainnet will go live Feb. 9, marking a major milestone for a project that has gained a lot of attention in the scaling landscape.
- MegaETH positions itself as a “real-time” blockchain for Ethereum, designed to deliver ultra-low latency and massive transaction throughput.
Top Stories
