Fantom (FTM) to Distribute 15% of Transaction Fees to Network Projects

Fantom has announced a new reward program that will return 15% of total transaction fees collected to projects built on its network.

Fantom (FTM) to Distribute 15% of Transaction Fees to Network Projects

Andre Cronje, the Chief Architect of Fantom, has unveiled a new gas fee incentive mechanism aimed at boosting projects within the ecosystem.

Specifically, the Fantom blockchain will reward projects and applications that utilize its network by sharing a portion of the gas fees generated. Gas fees are payments made by users to interact with the blockchain, which are deposited into a reserve fund. This fund is typically used for operational expenses, periodic token burns to reduce total supply, or funding incentives to promote community engagement.

Under this new program, Fantom will allocate 15% of the total gas fees collected to qualifying projects. This serves as an additional reward for these projects, increasing the earnings for developers.

As reported by Coin68, the "dApp Rewards Program" was proposed by Andre Cronje upon his return to the Fantom team at the end of 2022 and was approved by the community through a governance vote earlier this year. The program reduced the FTM token burn rate from 20% to 5%, reallocating the remaining 15% to applications on the network.

The development team further explained that Fantom’s Opera network will not directly compete with platforms like YouTube or Twitter but aims to attract and retain top talent in the Web 3.0 space.

According to real-time dashboard data, the amount to be distributed is close to 11,000 FTM, corresponding to a total transaction fee revenue of approximately 73,300 FTM that Fantom has collected to date.

Currently, the network has disbursed 514 FTM to four qualifying applications: Stargate Finance, LayerZero, SpookySwap, and Beets. These are also the top four applications in terms of gas fee consumption on the network.

Source: Fantom

The price of FTM is currently trading around $0.34, having risen approximately 3% in the past 24 hours.

1-hour chart of FTM/USDT on Binance as of 4:00 PM on 29/05/2023