On the first of December 2022, the Fantom Foundation announced a governance proposal allowing the network to reward its most active and creative developers.
📢 New governance proposal: dApp Gas Monetization Program
This gas monetization program will seek to reward high-quality dApps, retain talented creators, and support #Fantom’s network infrastructure.
Read the full details👇https://t.co/GVBAWXqXBO
— Fantom Foundation (@FantomFDN) December 1, 2022
The proposal is called dApp Gas Monetization Program. The program aims to reward high-quality decentralized applications built on the network. This would help them retain creators and support the network’s infrastructure.
Currently, the gas fees on the Fantom network are shared as thus. 70% goes to validators, 10% goes to the ecosystem Support vault, and around 20% is burned forever. The proposal above aims to redirect 15% out of the 20 as a reward to the application and its creators, reserving 5% to be burned forever.
The idea came from watching social media platforms’ relationships with content creators. And similar to a blockchain network, social media platforms grow with the increasing popularity of their content creators. They are optimized to make money, known as ad revenue.
In the same light, the blockchain would grow with the increase of their dApp creators. Thus the blockchain should be optimized to keep pushing for an increased demand for block space. Though they might not be competing with social media platforms, they are competing with other blockchains to retain bright minds.
The gas rewards received can be used to improve the project development, pay off salaries or loans, or buy back their tokens. Its use would be entirely at the discretion of the creators.
So how would it work?
First, Fantom aims to increase its foundation marketing and upgrade its network rollouts. Then they make it easier for creators to access funds from vaults and VCs, arrange more events, and increase their security like “watchdog”.
Then if the proposal is passed, creators would be eligible for 15% of the gas fees in the network. But without a set of requirements governing eligibility, there is the possibility of subpar applications and spam, which would work contrary to the intentions of its creation.
Though there aren’t any concrete requirements, such would be decided upon after passing the proposal. The requirements agreed upon, though, include two things. One, the project must have completed 1 million transactions or more. Two, The project must have been active on the Fantom Opera network for three months or more.
The flip side to this proposal is that the burn rate for FTM would be reduced by 75%. It’s yet to be decided if that is an advantage or not.
