Fantom Returns 15% Gas Fees to Selected Projects
Fantom, the blockchain project, has recently announced a groundbreaking initiative aimed at incentivizing the usage of its network and driving transaction volume.
The announcement, made by Andre Cronje, the project’s key developer, via a Twitter post, revealed that eligible projects will receive a 15% gas fee reward generated by their own activities. This move is set to provide additional income opportunities for many developers in the cryptocurrency industry.
Gas Monetization – done
— Andre Cronje (@AndreCronjeTech) May 28, 2023
The new strategy by Fantom is part of the dApp Gas Monetization Program, a program that enables projects to earn money from gas fees on dApps. This program was initially proposed and put to a community vote in early 2023. The recent proposal seeks to reduce Fantom’s token burning rate and redirect gas fees directly to applications deployed on the blockchain network. The proposal has been approved, resulting in a decrease in the token burn rate from 20% to 5%. Notably, 15% of the saved funds will be allocated to qualifying projects.
Moreover, monetizing gas fees will not only incentivize developers but also contribute to supporting Fantom’s blockchain infrastructure. This innovative approach aims to retain developers and reinforce the foundation of the Fantom ecosystem.
Gas fees are the charges incurred for processing transactions or interacting with smart contracts on a blockchain network. Gas, in this context, refers to a special unit used to measure the “work” or computational resources required for a specific task.
On Fantom, transaction fees originate from user interactions within the platform. The cumulative gas fees generated by project participants can amount to a substantial sum, thereby creating a new revenue stream for developers.
Some projects have already experienced the benefits of Fantom’s new program within just a few hours of its implementation on May 28th. For instance, the cross-chain bridge, Stargate Finance, earned 8,300 FTM (equivalent to over $2,600), while the SpookySwap exchange earned 978 FTM (approximately $300).
Fantom’s decision to share gas fee rewards with its project partners highlights the platform’s commitment to fostering growth and nurturing its developer community. By providing a financial incentive, Fantom aims to encourage the adoption of its blockchain network and facilitate increased transaction volumes, ultimately strengthening the overall ecosystem.
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