Fantom resolves to give back 15% of gas fees to certain projects
- Fantom blockchain will reward projects that contribute toward high usage of gas fees.
- The move aims at driving increased demand for block space.
- Eligible applications will be rewarded 15% of the gas fees they produce.
In a move to drive demand for block space on the Fantom blockchain, the blockchain has announced that it will reward projects that use the network and contribute high usage gas fees. Eligible applications will be given back 15% of the gas fees they produce thus giving developers some extra income.
The move is also expected to help add value to the FTM token, which at press time was trading at $0.3405, up 2.21% in the past 24 hours.
Fantom dApp Gas Monetization Program
The recent announcement is part of Fantom’s initiative called the “dApp Gas Monetization Program,” which was passed through a community governance vote earlier this year.
The dApp Gas Monetization Program proposal sought to bring down Fantom’s current token burn rate to direct more network fees to applications being built on the blockchain. Now that the proposal already passed, its implementation will reduce the burn rate from 20% to 5%.
Part of the gas fees saved from the reduced burn rate will be redirected towards gas monetization.
To be specific, the gas monetization program will reward in-demand applications and retain developers.
Projects already benefiting from the monetization program
According to on-chain data, some projects are already benefiting from the monetization program after the Sunday announcement that saw the start of the implementation of the passed proposal.
For example, decentralized exchange SpookySwap (BOO/USD) has earned 978 FTM ($300), while cross-chain bridge Stargate Finance (STG/USD) has earned 8,300 FTM ($2,600).