Fantom vote diverts 10% of burn fees to funding new projects

Fantom uses 10% of the burning fee to support various projects within its ecosystem.

The Fantom (FTM) community has passed an on-chain governance proposal aimed at supporting the continued evolution of the Layer 1 platform ecosystem.

Governance proposals Created On July 5th, we sought community approval through a vote. According to the Fantom Foundation, the vote was passed by a majority of 99.75% on Tuesday, July 26th.

Voting for Ecosystem Support Vault Governance Proposals has ended.

Voting: Pass https://t.co/MaDhvbrJss pic.twitter.com/w3nSKG7XBQ

Fantom Foundation (@FantomFDN) July 26, 2022

What is an Ecosystem Support Vault?

The Ecosystem Support Vault Fantom can support new projects and ideas on the Fantom Opera network through funds set separately from the 30% transaction fee burn rate percentage.

Through the proposal, 10%, or one-third of the 30% burning fee, will be sent to the vault controlled by the Fantom validator and stacker.

The community oversees the application of funding to major ecosystem projects and does so through on-chain governance mechanisms to maintain a decentralized approach.

Fantom is a high-performance blockchain that is fully compatible with Ethereum, with over 200 decentralized applications (dApps) deployed.

These include decentralized exchange (DEX), lending and borrowing, non-fungible token (NFT) platforms, GameFi, wallets, and apps that span cross-chain bridges. Fantom’s top DeFi protocols include Aave and Alpaca Finance.

In particular, the adoption of governance votes means that Fantom’s burning rate is effectively 20%.