In an unprecedented move, the Fantom Opera network team unveiled their groundbreaking initiative on May 31. Aptly named the “Gas Monetization Program,” this program aims to compensate developers for the gas fees incurred by users of their applications. Under this program, eligible developers stand to earn a handsome 15% of the total gas fees generated by their apps.
Gas Monetization on #Fantom is live! ⛽
The program provides dApps with a sustainable income by offering them a 15% share of the gas fees they generate.
— Fantom Foundation (@FantomFDN) May 31, 2023
Already, six esteemed Web3 apps have received approval to participate in the program. These apps, namely ParaSwap, Beethoven X, Stargate, LayerZero, WOOFi, and SpookySwap have collectively generated a staggering 12,000 Fantom tokens.
The traction gained by these initial participants demonstrates the potential of the Gas Monetization Program. Drawing inspiration from the ad-revenue model employed by Web2 giants like YouTube and Snapchat, the Fantom team seeks to offer developers an alternative source of revenue.
By doing so, they hope to foster a sustainable ecosystem for Fantom’s growth and development. It’s important to note that not all apps will be eligible for this program. Protocols that have facilitated less than 125,000 transactions or have been live on the Fantom network for less than three months will be automatically excluded.
The introduction of the Gas Monetization Program initially raised concerns among users. Some skeptics speculated that developers might prioritize maximizing gas fees over-optimizing gas efficiency.
This would imply that higher gas fees translate into greater FTM rewards for developers. Moreover, potentially compromises the overall efficiency of the platform. However, Fantom promptly addressed these concerns, emphasizing that developers must still prioritize gas efficiency to remain competitive in the market.
Furthermore, any apps deemed to be exploiting the program may face suspension from participation, ensuring fair and balanced implementation. This initiative has been in the works since December when Fantom proposed a reduction in the token burn rate by 75% to secure funding for the Gas Monetization Program.
As part of their commitment to enhancing the platform in 2023, Fantom Foundation director and decentralized finance architect Andre Cronje had previously announced a focus on “gas reform” to attract more developers and users.
Fantom’s Gas Monetization Program Sets New Precedent
Fantom’s recent foray into compensating developers for gas fees marks an exciting chapter in the world of cryptocurrency. With the Gas Monetization Program, Fantom has deftly navigated the path paved by Web2 predecessors and established a pioneering model for incentivizing developer participation.
By adopting the proven ad-revenue approach, Fantom hopes to create a sustainable ecosystem that rewards developers while maintaining efficiency and competitiveness. The program’s initial success, as demonstrated by the six approved Web3 apps and their impressive Fantom token generation, showcases the viability of this unique concept.
While skeptics initially voiced concerns about potential drawbacks, such as developers prioritizing gas fees over efficiency. Fantom remains committed to upholding high standards.
They intend to foster an environment where gas-efficient contracts thrive, compelling developers to continue optimizing their applications. Any attempts to exploit the program will be met with swift action. Ensuring a fair and balanced playing field for all participants.
As Fantom looks ahead to the future, the Gas Monetization Program is a testament to its dedication to growth and innovation by introducing this pioneering initiative and actively encouraging developer engagement. Fantom aims to attract a greater number of talented individuals to its platform.
However, with the reduction in token burn rate and the commitment to “gas reform” in 2023. Therefore, Fantom is well-positioned to emerge as a trailblazer in crypto.