The (FTM) blockchain has recently implemented a new initiative known as the “dApp Gas Monetization Program,” which aims to reward projects that utilize its network and contribute to increased gas fee usage. This program has received community support through a governance vote and seeks to redirect a portion of Fantom’s network fees directly to decentralized applications (dApps) that are being built on the platform.
With this new program in place, eligible applications will now receive 15% of the gas fees they generate, providing developers with an additional source of income. The team behind Fantom announced this over the weekend, stating that the program’s primary goal is to encourage the development of high-demand applications, retain developers, and foster a thriving ecosystem on its blockchain platform. By reducing Fantom’s burn rate from 20% to 5%, the program aims to drive increased demand for block space and support the network’s infrastructure.
Fantom co-founder and DeFi veteran Andre Cronje celebrated the dApp Gas Monetization Program as the “next step towards the decentralized web.” Cronje, who previously founded DeFi protocol (YFI) and is known for his love/hate relationship with DeFi, shared the news with his 384,000 Twitter followers.
These gas fees, which are paid by blockchain users in the chain’s native token (in this case, FTM), contribute to the overall costs of operating on the platform. Although these fees on Fantom are relatively low, they can add up over time and negatively impact users of Fantom-based projects.
The Fantom Foundation’s Director of Business Development, Sam Harcourt, commented on the implementation of the fee rewards program, stating that decentralized application developers on Fantom can expect “quite a steady source of income.” Harcourt added that this program allows application developers to avoid raising capital from “mercenary VCs who will give them terrible valuations or having to do some sort of token launch […] which can be a little bit risky.”
The implementation of the gas monetization program has already shown promising results, with cross-chain bridge Stargate Finance receiving 8,300 FTM (worth over $2,700) and decentralized exchange SpookySwap earning 978 FTM (approximately $330) within hours of the program’s launch. Rewards can be claimed by visiting earngas.fantom.network.
While the dApp Gas Monetization Program certainly presents an attractive incentive for developers to build on Fantom, it also raises questions about the long-term sustainability of the platform’s finances. Will the 15% rewards result in a reduced income for network maintainers, or will the increased demand for block space offset this potential drawback? Only time will tell as the Fantom ecosystem continues to evolve and grow.
Source: Cryptonews
