3 months ago 1 min read

After Fantom Accepts New Governance Proposal, Will FTM Recover?


The Fantom Foundation tweeted the news of the approval of their new governance plan to offer gas monetization for dApps throughout the ecosystem. High hopes for the FTM token's recovery have been raised by this tweet.

After obtaining governance approval to distribute up to 15% of transaction fees as revenue to developers creating Fantom-based products, FTM is anticipated to recover. But in the future, the allocation could be changed by a different governance vote.

The Fantom network now distributes about 70% of transaction fees as revenue to validators and burns the remaining 20% permanently. Earlier, the Fantom Foundation suggested a gas monetization strategy to lower the burn rate from 20% to 5%, with the remaining funds being distributed as shares to encourage developers to expand the ecosystem. Well-developed dApps will be awarded.

As a result, 15% of dApp transaction fees will go to qualified developers. Decentralized applications (dApps) must have run on the Fantom Opera network for at least three months and have completed more than one million transactions in order to be eligible for the awards. The Fantom Foundation added that in order to prevent the creation of useless dApps and the abuse of the gas monetization model, the qualifying standards would be changed as necessary.

The native token of this network, FTM, is anticipated to appreciate in value in the future. The Fantom Foundation has high expectations that the new incentive model will contribute to preserving the network's viability and fostering Fantom's growth in the years to come. The Fantom Foundation also anticipates that it will assist in luring and retaining exceptional engineers. With the recent moves and the return of the "DeFi godfather," Andre Cronje, the Fantom ecosystem is demonstrating remarkable growth and is unquestionably a situation worth your attention in the near future.

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