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News

Fantom Announced Its Updated Requirements For the Incentive Rewards Program

January 18, 2022 - Around 3 mins mins to read

Fantom has just announced its updated requirements for the Incentive Rewards Program.

  • fantom updated requirements

Since the first announcement of Fantom’s DeFi incentive program, the network has grown significantly: 

  • TVL has risen from $755.25M on August 31 to $5.1B at present.
  • Total Daily Transactions reached an all time high of 1,800,288 on the 12th of September and recently the network surpassed 100 million transactions.
  • The total number of unique wallets has passed 1.1 million, with 75k average daily users.

Fantom has adjusted both the reward tiers and minimum TVL requirements to align rewards with the dollar values represented when the program was announced and accurately reflect ecosystem growth. 

This adjustment enables the Foundation to support more protocols than before and to grow the community and the ecosystem. As ever, their goals remain to promote sustainability and to encourage innovation.  

Adjustment Details

The below applies to all projects. If you are already enrolled, the new requirements will be effective from December 2021 onwards.

Henceforth, the minimum qualifying TVL will be calculated on an ongoing basis as a function of the FTM price and reward tier. As of now, the reward tiers are:

  • Tier 1: 500,000 FTM
  • Tier 2: 900,000 FTM
  • Tier 3: 2,500,000 FTM
  • Tier 4: 6,000,000 FTM

To determine if a project qualifies for a reward tier:

Step 1 – Calculate the dollar value of the reward

Reward dollar value = (Current $ price of FTM * FTM Reward for tier)

At the time of writing, FTM is $2.25. Taking the 500,000 FTM tier as an example, the reward dollar value is: ($2.25 * 500,000FTM) = $1,125,000

Step 2 – Calculate minimum required TVL

To calculate the minimum required TVL, multiply the reward dollar value by 20. In other words, the reward dollar value represents 5% of the required total TVL. 

So in this case, to qualify for the 500,000 FTM reward, project TVL (time-weighted) must be at least: ($1.125M * 20) = $22,500,000

Fantom asks that projects perform this calculation before applying. All other aspects of the application use of rewards, cliffs, and reward amounts remain unchanged. 

Application process

  • Confirm that the TVL project is tracked on Defi Llama.
  • Configure a publicly verifiable, preferably multi-sig team wallet address for reward distribution.
  • Calculate reward eligibility against the reward program TVL requirements represented by the formula: (current $ price of FTM * FTM reward amount) * 20 = Min. TVL required in $
  • Submit your project on Fantom Projects.
  • Complete the application form specifying the current TVL and showing the calculation. 

Acceptance and Reward details

  • Marked from the date the protocol achieves the requirements, a two-month cliff ensues. 
  • Rewards are vested monthly over 12 months. 
  • The project administrator will track protocol TVL on an ongoing basis. If the protocol TVL falls below the minimum threshold during the vesting period, vesting is paused until minimum TVL is regained. 
  • If the TVL of a protocol that applied for a lower reward rises above the required average TVL of a higher tier – for example, from the minimum TVL for the 500K FTM reward to qualifying TVL for the 900K FTM reward – that project will receive higher rewards over the remaining vesting period. For TVLs that dip from one tier to a lower tier, the inverse will apply.
  • The purpose of this incentive program is to support the Fantom ecosystem. If it is reported that FTM rewards are misused in a way that is negative to the ecosystem, the Fantom Foundation reserves the right to halt rewards to the protocols in question. 

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News

News

Fantom Announced Its Updated Requirements For the Incentive Rewards Program

Fantom has just announced its updated requirements for the Incentive Rewards Program.

  • fantom updated requirements

Since the first announcement of Fantom’s DeFi incentive program, the network has grown significantly: 

  • TVL has risen from $755.25M on August 31 to $5.1B at present.
  • Total Daily Transactions reached an all time high of 1,800,288 on the 12th of September and recently the network surpassed 100 million transactions.
  • The total number of unique wallets has passed 1.1 million, with 75k average daily users.

Fantom has adjusted both the reward tiers and minimum TVL requirements to align rewards with the dollar values represented when the program was announced and accurately reflect ecosystem growth. 

This adjustment enables the Foundation to support more protocols than before and to grow the community and the ecosystem. As ever, their goals remain to promote sustainability and to encourage innovation.  

Adjustment Details

The below applies to all projects. If you are already enrolled, the new requirements will be effective from December 2021 onwards.

Henceforth, the minimum qualifying TVL will be calculated on an ongoing basis as a function of the FTM price and reward tier. As of now, the reward tiers are:

  • Tier 1: 500,000 FTM
  • Tier 2: 900,000 FTM
  • Tier 3: 2,500,000 FTM
  • Tier 4: 6,000,000 FTM

To determine if a project qualifies for a reward tier:

Step 1 – Calculate the dollar value of the reward

Reward dollar value = (Current $ price of FTM * FTM Reward for tier)

At the time of writing, FTM is $2.25. Taking the 500,000 FTM tier as an example, the reward dollar value is: ($2.25 * 500,000FTM) = $1,125,000

Step 2 – Calculate minimum required TVL

To calculate the minimum required TVL, multiply the reward dollar value by 20. In other words, the reward dollar value represents 5% of the required total TVL. 

So in this case, to qualify for the 500,000 FTM reward, project TVL (time-weighted) must be at least: ($1.125M * 20) = $22,500,000

Fantom asks that projects perform this calculation before applying. All other aspects of the application use of rewards, cliffs, and reward amounts remain unchanged. 

Application process

  • Confirm that the TVL project is tracked on Defi Llama.
  • Configure a publicly verifiable, preferably multi-sig team wallet address for reward distribution.
  • Calculate reward eligibility against the reward program TVL requirements represented by the formula: (current $ price of FTM * FTM reward amount) * 20 = Min. TVL required in $
  • Submit your project on Fantom Projects.
  • Complete the application form specifying the current TVL and showing the calculation. 

Acceptance and Reward details

  • Marked from the date the protocol achieves the requirements, a two-month cliff ensues. 
  • Rewards are vested monthly over 12 months. 
  • The project administrator will track protocol TVL on an ongoing basis. If the protocol TVL falls below the minimum threshold during the vesting period, vesting is paused until minimum TVL is regained. 
  • If the TVL of a protocol that applied for a lower reward rises above the required average TVL of a higher tier – for example, from the minimum TVL for the 500K FTM reward to qualifying TVL for the 900K FTM reward – that project will receive higher rewards over the remaining vesting period. For TVLs that dip from one tier to a lower tier, the inverse will apply.
  • The purpose of this incentive program is to support the Fantom ecosystem. If it is reported that FTM rewards are misused in a way that is negative to the ecosystem, the Fantom Foundation reserves the right to halt rewards to the protocols in question. 

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News

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