Fantom’s Groundbreaking Initiative: Refunding 15% of Token Fees to Some Projects
Fantom Blockchain Rewards Projects with 15% Gas Fee Refunds, Boosting Demand for Block Space
In an effort to drive demand for block space and enhance the value proposition of FTM tokens, Fantom blockchain has introduced a groundbreaking initiative. The platform will now reward projects that leverage its network and contribute to high gas fee usage, offering them a refund of 15% of the gas fees they generate. This move aims to provide developers with additional income while fostering increased demand for block space.
Known as the “dApp Gas Monetization Program,” this initiative was approved through a community governance vote earlier this year. Its objective is to decrease Fantom’s current burn rate and redirect more network fees directly to applications built on the platform.
With the implementation of the program, Fantom’s burn rate will be reduced from 20% to 5%, allocating the remaining 15% towards gas monetization.
This gas monetization program will not only incentivize in-demand applications but also help retain developers and support Fantom’s network infrastructure. Gas fees, which are paid by blockchain users in the native token (such as FTM), play a crucial role in sustaining the platform. Although individual transaction fees on Fantom are relatively small, the cumulative effect over time can be substantial, affecting users of Fantom-based projects.
Remarkably, the early data indicates that several projects have already begun reaping the benefits of the gas monetization program within hours of its implementation on Sunday.
Stargate Finance, a cross-chain bridge, received a substantial amount of 8,300 FTM, equivalent to approximately $2,600 based on present market values. Meanwhile, SpookySwap, a decentralized exchange, generated earnings of 978 FTM, which amounts to slightly over $300.
