Fantom Approves Proposal To Fund Ecosystem Projects Using Portion Of Burn Fees
A governance vote saw a large number of community members in favor of using a third of Fantom’s burning fees to fund new projects.
Fantom community members approved a governance proposal to utilize one-third of the network’s burning fees to support future ecosystem projects. This option has received nearly 100% of the total votes cast.
The proposal started on July 05 and was scheduled to run until Oct 03, but voting closed after support crossed the minimum 55% requirement.
This is a governance proposal launched by Fantom Foundation Business Development Manager Sam Harcourt, calling for the creation of a fund to support the project’s new ecosystem and launch new ideas on the Fantom Opera network.
On July 27, this proposal was approved with the almost unanimous approval of the community. Details from the voting page show that 99.75% of the total votes favor the plan.
The project will fund the new fund with a 10% transaction fee, which is a third of the network’s 30% burning fee, instead of being used to reward validators. Incineration can contribute to a decrease in the total supply of FTM as a portion of the token supply will be continuously removed from circulation over time.
However, by funding in the form just mentioned, the FTM burn rate will be reduced to 20%, resulting in a reduction in the amount of FTM burned per year.
Initial payments will be made manually through the Fantom Foundation, using tools such as LlamaPay, to fund projects whose proposals are approved by the Ecosystem Vault.
The risks raised by the now-passed proposal include malicious approval of projects that require funding from the Ecosystem Vault, influential organizations or groups that self-finance or promote projects they control, and one that is overly promotional and cannot be carried out with the money received.
However, measures are put in place to counter those risks, as the developers said in the proposal:
“Fantom reserves the right to halt any payment stream indefinitely if fraudulent user activity is suspected or if the Foundation believes it presents a negative risk to the Fantom ecosystem.”
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