Will FTM Rebound After Fantom Accepts A New Governance Proposal?

Key Points:

• FTM is expected to rebound after Fantom has acquired governance approval to allocate up to 15% of transaction fees as revenue to developers operating on Fantom.
• The Fantom Foundation previously proposed a gas monetization strategy that would cut the burn rate from 20% to 5%, with the balance provided as a share to encourage developers to build on the ecosystem.

The Fantom Foundation announced on Twitter that their new governance proposal to provide gas monetization for dApps across the ecosystem has been approved. This tweet has made high expectations for the rebound of the FTM token.

FTM is expected to rebound after Fantom has obtained governance approval to allocate up to 15% of transaction fees as revenue to developers developing on Fantom, according to the newly adopted plan. The allocation, however, can be increased or decreased in the future via a separate governance vote.

Currently, around 70% of transaction fees collected on the Fantom network are distributed to validators as revenue, while the remaining 20% is burned forever. The Fantom Foundation earlier proposed a gas monetization approach to reduce the burn rate from 20% to 5%, with the remainder allocated as a share to motivate developers to build on the ecosystem. dApps that are well-developed will be rewarded.

As a result, qualifying developers will get about 15% of dApp transaction fees. In order for decentralized applications (dApps) to qualify for the awards, they need to have been running on the Fantom Opera network for at least three months and have more than one million transactions that have been finalized. The Fantom Foundation also stated that the qualifying requirements will be adjusted as needed in order to limit garbage dApps and misuse of the gas monetization model.

FTM is the native token of this network, which is being looked forward to an increase in price in the future. The Fantom Foundation has high hopes that the new incentive model will assist maintain the network’s viability and the continued development of Fantom in the years to come. In addition, the Fantom Foundation expects that it will help attract and keep outstanding engineers. The Fantom ecosystem is exhibiting tremendous strides with the current maneuvers and the return of “DeFi godfather” Andre Cronje, and is clearly an environment worth your attention in the near future.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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