Fantom wants to cut token burn rate by 75% to fund dApp rewards program

Cryptocurrency

According to a new proposal dated Dec. 1, directed acrylic graph network Fantom seeks to implement an affiliate program for its decentralized application, or dApp, developers with network gas fees. To fund this venture, the Fantom community has proposed slashing the protocol’s current FTM token burn rate from 20% to 5%. In supporting the proposal, Fantom developers wrote: 

“We take what works in web2 and restructure it to fit the network’s priorities, which means taking the ad monetisation model and extending it to gas monetisation for performing dApps that manage to attract a steady stream of users.”

The development team further elaborated that Fantom’s Opera network [native dApp builder] “is not directly competing against Youtube or Twitter,” but seeks to “attract and retain high-grade talent continuously” in the Web 3.0 space. To qualify for the potential incentive, dApps must have recorded 1,000,000 or more transactions and have spent three months or above on the Fantom Opera network. Upon approval, developers can then claim 15% of the total gas fees spent on their dApp.

However, the Fantom Foundation said that it “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.” Currently, a total of 8.36 million FTM tokens have been burned since the Fantom mainnet went live in 2019. Voting for the proposal is ongoing and requires a minimum of 55% turnout from FTM token holders to pass.

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