- Summary:
- The move is enabled by a governance vote passed earlier this year, approving a proposal to use 15% of network fees to incentivise developers.
The Fantom blockchain has announced that it will offer rewards to projects that promote heavy gas usage on its network. The decision was prompted by an effort to stimulate greater interest in using block space. Eligible applications will receive a rebate of 15% of the gas fees they generate.
The incentive is likely to pay off for Fantom
Ealier this year, the Fantom community voted as part of Fantom’s initiative called the “dApp Gas Monetization Program,” and the new fee incentive is a direct result of the governance vote. The plan’s stated objective was to reduce the burning of Fantom tokens and redirect those funds to increasing application developers’ share of network fees on the Fantom blockchain. Following approval of the proposal, Fantom will cut its burn rate from 20% to 5%, with the remaining 15% going towards gas monetisation.
The qualification criteria has been spelled out, and from now on, developers that achieve them now have an added reason to take their projects to Fantom. More programmers and users will be drawn to the Fantom platform as a result of this. The FTM token, the native currency of the blockchain, will likely benefit from this in the long run. Users of Fantom-based projects have to pay for the network’s fees, which amount to just a few cents for each transaction but can quickly pile up to substantial sums.
With the new incentives to developers, many projects will likely be coming to the Fantom ecosystem, and bring their user bases with them. In the long run, this will benefit the ecosystem as a whole because it has the potential to stimulate innovation and competition within the blockchain.