Fantom proposes a 75% reduction in token burn rate to fund dApp rewards

Fantom, the directed acyclic graph smart contract platform that provided decentralized finance services to developers, took a major step towards incentivizing development on its platform to further drive network growth and adoption.

Proposal to cut down token burn rate

The Fantom Foundation submitted a new governance proposal that sought to implement the dApp Gas Monetization Program. According to the program, Fantom’s current burn rate will be reduced by 75%, and the saved network fees will be redirected toward dApp builders on the network. 

If approved, the proposal will bring down Fantom’s burn rate from its current 20% to 5%. Developers will claim the remaining 15% of gas fees.  

https://twitter.com/FantomFDN/status/1598315932367060992?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1598315932367060992%7Ctwgr%5Ee60fd07a029cd0c6c5a84daa01e62a50e1334d49%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Ffantom-wants-to-cut-token-burn-rate-by-75-to-fund-dapp-rewards-program

Fantom stated,

“We take what works in web2 and restructure it to fit the network’s priorities, which means taking the ad monetization model and extending it to gas monetization for high-performing dApps that manage to attract a steady stream of users.”

Voting and eligibility

According to the governance forum, the community was divided over the proposal, at the time of writing. 50% of the votes were in favor of the proposal, while the rest were against it. At the time of writing, only 20.6% of the total community had voted. 8 December is the tentative date for the voting to end. 

As for the eligibility for dApp Affiliate Rewards, the proposal states that a developer should have completed over 1,000,000 or more transactions. The builder should have also spent three months or above on the Fantom Opera Network.

Fantom Financials

Earlier this week, Fantom’s technical advisor, Andre Cronje, released a report outlining the platform’s impressive financial health. He revealed that Fantom does not spend a penny on exchange listing fees and influencer marketing - they only operate with essential staff and keep operational expenses low. 

As of November 2022, Fantom had over 450 million FTM ($110 million), $100 million worth of stablecoins, $100 million in crypto assets, and $50 million in non-crypto assets. With a salary burn rate of $7 million a year, Fantom technically can operate for the next 30 years. 

FTM traded at $0.246 at the time of writing, with a market cap of $626 million and over $204 million traded over the past 24 hours. Fantom’s native token also saw an impressive rally of 33% over the last week. 

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