As part of the ongoing effort of Fantom is to implement sustainable incentivization for builders, we want to introduce the latest governance proposal. The aim of this proposal is to decrease the current burn rate in the protocol and to channel more network fees to dApps directly that are being developed on the ecosystem. If accepted, this implementation will decrease the burn rate from 20% to 5% within the ecosystem, allocating this 15% reduction toward gas monetization. This gas monetization will recognize high-quality dApps, retain skilled creators, and bolster Fantom’s network infrastructure.
How Does dApp Gas Monetization Operate?
Social media platforms flourish based on the success of their content creators, and the same applies to a blockchain’s relationship with its dApps or builder base. While Web2 social media platforms optimize for ad revenue, high-quality dApps should focus on generating increased demand for block space.
Fantom Compensates High-quality Creators Using Affiliate Rewards
We adopt what succeeds in Web2 and adapt it to align with the network’s priorities, meaning taking the ad monetization model and expanding it to gas monetization for well-performing dApps that successfully attract a consistent user base. This would be achieved by sharing the gas fees paid to the network with the builder, at the proposed rate of 15%.
About Fantom
Fantom is an open-source blockchain network that supports smart contracts. The project is built in analogy with Ethereum. The company, which was launched in 2019, has gained popularity due to the high speed of transactions and low cost of transfers. The effectiveness of Fantom was, among other things, assessed at the state level. The key feature of the protocol is that it can process over 300,000 transactions per second (TPS). For comparison, this indicator in the Bitcoin network is 7, and in Ethereum it is 20-30. In terms of the number of TPS, it’s even ahead of Visa. This makes it the fastest blockchain on the market.
