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Fantom's Key Governance Proposal Has Passed, Here's What It Is For

Thu, 01/05/2023 - 10:29
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Tomiwabold Olajide
Fantom's key governance proposal has passed
Fantom's Key Governance Proposal Has Passed, Here's What It Is For
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The Fantom Foundation recounts 2022 as being full of achievements and progress, and it does not intend to slow down. In this light, it revealed one of its key priorities for 2023, which is gas monetization.

This hopes to provide strong dApps teams with a sustainable income through revenue sharing based on the gas used by their dApps. Fantom also aims to introduce gas subsidies as a means of incentive, allowing builders to interact with dApps without having to pay gas fees themselves.

In a step forward, Fantom's latest governance proposal bringing gas monetization to successful dApps has passed. Besides optimizing demand for block space, the implementation aims to reward quality creators on Fantom in a way similar to affiliate incentives.

Gas monetization would be beneficial to Fantom's ecosystem of builders by introducing a new revenue source, which monetizes the volume of transactions generated by their dApps.

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The dApp gas monetization takes the framework of a revenue model that is already prevalent in Web2 (ad monetization) and adjusts it to incentivize developers building on the Fantom network.

This is accomplished by reducing the burn rate from 20% to 5% and redirecting 15% toward gas monetization. However, Fantom explains that a separate governance proposal might be passed to make the figures quoted above permanent, so they might be liable to change in the future.

According to the Fantom Foundation, a successful governance proposal would complement the next phase of growth on Fantom by introducing long-term monetization tools.

Other major advancements on its radar include account abstraction, which will no longer differentiate between EOA accounts (which are accounts owned by a single person) and contracts; a new middleware, specifically the Fantom Virtual Machine and new storage mechanisms.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.