Fantom Network has introduced an affiliate program to incentivize developers on its ecosystem. The proposal submitted for community vote seeks to reduce Fantom’s token burn rate by 75% and share 15% of the network’s gas fee with decentralized applications (dApps).
Developers on the Fantom Network, an Ethereum Virtual Machine (EVM) compatible Layer-1 blockchain, have introduced a new governance proposal to improve the incentive program for decentralized applications (dApp) in the ecosystem. The ‘dApp Gas Monetization Program’ seeks to cut down Fantom’s (FTM) current token burn rate by 75% and use the transaction fees that are generated to reward developers contributing to the network’s growth.
“Social media platforms thrive on the success of their content creators, and the same can be said for a blockchain’s relationship with its dApps or builder base. Where Web2 social media platforms optimize for ad revenue, high-quality dApps should optimize toward driving increased demand for block space,” explained the proposal.
If the Fantom Foundation passes its Affiliate Program proposal, then the directed acrylic graph (DAG) network will reduce FTM token burn-rate from 20% to 5%, and redirect the 15% towards ‘Gas Monetization’ – an initiative to reward dApps, retain Fantom creators and developers, and improve network infrastructure. Fantom will split 15% of the ‘gas’ fee with developers on the Opera Network – Fantom’s native dApp builder.
In order to be eligible for the Affiliate Program, dApps must have spent at least three months being live on the Fantom Opera Network and must have processed more than a million transactions. Only developers that pass these criterias will be able to claim the 15% gas fee spent by users on their applications. The proposal took note of scenarios where the Fantom Network will generate additional FTM tokens, like when; a dApp is launched on the blockchain, failed transactions charging a gas fee, or other transactions outside the rewards program. In such cases the tokens will be redistributed as; increased bonuses for dApps participating in the Affiliate Program, donations to Fantom Vault and the Gitcoin marching grants (Fantom’s funding program), rewards for content creators and infrastructure developers, and sent to token burn addresses.
dApps that surpass the transaction threshold and apply for the Affiliate Program will need to be reviewed and approved by the Fantom Foundation first. Once accepted, dApps will be eligible to claim up to 100% of the gas fee they contribute to the rewards program or 15% of the gas fee spent by users on their platforms, and other benefits like bonuses in the form of additional FTM tokens that were minted. The proposal also noted that depending on circumstances, the 15% rewards rate is subject to change in the future.
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“Affiliate Rewards is a prototype, the Fantom Foundation reserves the right to halt any payment stream indefinitely for any reason, including if fraudulent user activity is suspected or if the Foundation believes it is in the best interests of the Fantom ecosystem,” added the proposal.
The proposal submitted to the Fantom Network on December 1, will be open to be voted on by FTM token holders until March 3, 2022. At the time of writing, FTM is trading at $0.24, up by 4.7% in the last 24-hours. With over 2.5 billion FTM currently in circulation, Fantom Network has a total market valuation of $628 million.