Fantom Foundation proposes using 10% transaction fees to help develop its ecosystem. The proposal, if passed, will lower Fantom’s fee rate to 20%.
Fantom is currently voting to establish a fund that will support projects within the network’s ecosystem. Funding comes from transaction fees, which are currently burned.
The vote was based on the governance proposal submitted by Sam Harcourt, Fantom Foundation director for business development. The proposal calls for the creation an on-chain Ecosystem Suppl Vault to hold funds that can be used to fund ideas and projects on Fantom Opera’s network.
The Fantom network transaction fees will be used to fund the vault. A third of fees that would have otherwise been burned, which is the place transaction fees go instead of to the network validator, will be used to fund the vault.
Voting began on July 5, and will close on October 3. It can be accessed via fWallet. Fantom’s default bank account. While the majority of voters support it, there is only a 2.78% participation rate. This is still early. To reach quorum, it must see this increase to 55%.
Fantom Opera currently burns 30% on all transaction fees to inflict inflationary pressure on FTM (the network’s native currency). If Harcourt’s proposal is approved, it will decrease the amount FTM that is burned daily.
Fantom’s Special Fee Contract will hold the vault funds. The SFC is responsible to distribute rewards to stakers on the network.
The governance proposal states that projects who wish to apply for grants from the vault must submit a request via the network’s governance portal using FWallet. The community will vote on whether to grant the request.
The Foundation will pay the grant amount via LlamaPay, an on-chain transaction automator service. The Foundation stated that it would also work to develop an automated payment function for vault.