Fantom pays developers for gas fees
The Fantom Opera network (FTM) team has announced a new program called the “Gas Monetization Program” that will pay developers for the gas fees generated by users. The program will pay eligible developers 15% of the total gas fees their apps generate. The program is intended to provide developers with an alternative source of revenue, creating a sustainable ecosystem for Fantom.
The Gas Monetization Program on #Fantom is now live! ⛽ The program provides dApps with a sustainable income by offering them a 15% share of the gas fees they generate. Over 12,000 $FTM has been distributed thus far https://t.co/BqpuKtrZh0
— Fantom Foundation (@FantomFDN) May 31, 2023
As of the announcement, six Web3 apps, including ParaSwap, Beethoven X, Stargate, LayerZero, WOOFi, and SpookySwap, have already been approved for the program and have generated over 12,000 FTM (worth approximately $3,715) of rewards. However, not all apps will be eligible for the program. Protocols that have done less than 125,000 transactions or have been live on Fantom for less than three months will be automatically excluded. Others can apply to become part of the program, but Fantom warned that “the criteria are subject to change as the Fantom Foundation assesses their effectiveness.”
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The program was inspired by the Web2 ad-revenue model implemented by sites like YouTube and Snapchat that pay content creators for their contributions. The Fantom team hopes it will provide developers with an alternative source of revenue, leading to a sustainable ecosystem for Fantom.
However, the team encountered some pushback from users when they first began discussing the Gas Monetization Program. Some speculated that the program might discourage developers from creating gas-efficient contracts, as higher gas fees result in greater FTM rewards for them to claim. However, Fantom argued that this reasoning is flawed. They believe app developers will still need to make gas-efficient contracts; otherwise, the apps will be challenged by competitors. The team clarified that apps perceived to be abusing the program may be suspended from participation.
Fantom has been preparing for the Gas Monetization Program since December when it proposed a 75% cut to the token burn rate to finance it. Later that month, Fantom Foundation director and DeFi architect Andre Cronje announced that the team would focus on “gas reform” in 2023 to onboard more developers and users.