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Fantom Will Pay Back 15% of Token Fees to Some Projects
The move is part of an initiative to drive demand for block space, which help add to the value proposition of FTM tokens.
Fantom blockchain 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.
Eligible applications will be rewarded 15% of the gas fees they produce, providing developers with marginal extra income.
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This is part of a planned move called the “dApp Gas Monetization Program,” which passed a community governance vote earlier this year.
That proposal sought to reduce fantom’s current burn rate in order to redirect more network fees directly to applications building on Fantom. Now that it has passed, the implementation will reduce Fantom’s burn rate from 20% to 5% and redirect the 15% reduction toward gas monetization.
This gas monetization will reward in-demand applications, retain developers and is said to help support Fantom’s network infrastructure.
Gas refers to a type of fee paid by blockchain users in the native token of that blockchain, such as in this case. Fees on Fantom are fractions of a few cents per transaction, but add up to a significant amount over time – one that is borne by the users of Fantom-based projects.
Data shows some projects are already benefiting from the monetization program just hours after its Sunday implementation.
Cross-chain bridge Stargate Finance has been 8,300 FTM, worth just over $2,600 at current prices. Decentralized exchange SpookySwap earned 978 FTM, or just over $300.
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