Announcing 370m FTM incentive program
Over the past few months, we’ve seen a lot of exciting things going on in regards to liquidity mining. So exciting, that even other foundations behind their respective chains started to provide rewards to users of protocols willing to deploy on top of their chain.
We’ve been asked to do the same, but we believe that playing by the book doesn’t warrant different results. Therefore we have decided to introduce a different kind of program to better align incentives between users, builders, and the network.
We believe that builders are the best ones to judge where funds should be allocated, whether they should be provided to build the protocol, or if they need to be used for liquidity mining.
Rather than playing favorites and providing a majority of our resources to a handful of protocols, we’re opening this up to every dev team that will deploy on Fantom.
From today on, protocol teams will be able to apply for rewards from the Fantom Foundation based on their total value locked (TVL), scaling from 1,000,000 FTM up to 5,000,000 FTM in its first iteration, and to be changed accordingly depending on the needs of builders.
We are committing 370,000,000 FTM to this program.
Protocols are rewarded based on their time-weighted average TVL.
At the moment, there are four bands as follows:
$5,000,000 to $50,000,000 TVL = 1,000,000 FTM
$50,000,000 to $100,000,000 TVL = 1,800,000 FTM
$100,000,000 to $200,000,000 TVL = 5,000,000 FTM
$200,000,000 TVL and above = 12,000,000 FTM
How to apply
- Fill out this form providing information about your protocol, including a publicly verifiable, preferably multi-sig team wallet address for reward distribution.
- Make sure that your project is listed on DefiLlama, as it will be used to track TVL.
- Submit your project on Fantom Projects.
Once the Foundation has approved an application, a two-month cliff begins.
- Awards are vested monthly over 12 months.
- If the protocol TVL falls below $5M during the vesting period, vesting is paused until minimum TVL is regained.
- If the TVL of a protocol that applied for a lower award rises above the required average TVL of a higher tier – for example, from (avg. TVL > $5,000,000) to (avg. TVL > $50,000,000) – 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.
Use of rewards
We believe that builders and devs know best how to allocate funds, so there are no restrictions on how awards may be used – whether to build the protocol or even for liquidity mining.
For any further questions, you can reach out to us at [email protected]