Gas Monetization: Introducing the Quarterly Bonus
We are pleased to announce the next stage of Gas Monetization with the introduction of a bonus reward for projects participating in the program!
The quarterly bonus will be distributed to the top twelve earning projects and will allow the dApps to increase their passive income even further.
What is Gas Monetization?
The Gas Monetization program on Fantom provides high-quality dApps with a sustainable income by offering them a 15% share of the gas fees they generate.
Similarly to the Web2 ad-revenue model that allows platforms to reward the creators that drive their success, the Gas Monetization program allows Fantom to reward developers for the gas usage of their dApps, which is linked to the level of traffic they bring to the platform.
Gas Monetization has been massively successful thus far, with participating projects earning over 70,000 FTM in rewards, and the top-earning project, Beethoven X, earning over 14,000 FTM in rewards!
What is the Gas Monetization quarterly bonus?
The Gas Monetization program decreased the transaction burn rate of FTM from 20% to 5%, and the resulting 15% of gas fees were allocated to dApps participating in the program.
However, not all transactions on Fantom stem from dApps that are participating in the Gas Monetization program. The 15% share of gas fees from ineligible transactions is distributed to the top twelve earning projects through a quarterly bonus.
These twelve projects are divided equally into four tiers that determine the amount of FTM they receive quarterly:
- Tier 1 (top three projects): 40% of FTM
- Tier 2 (next three projects): 30% of FTM
- Tier 3 (next three projects): 20% of FTM
- Tier 4 (final three projects): 10% of FTM
Current analytics show there already are over 410,000 FTM in the upcoming bonus round, a number that is growing every epoch.
Why implement Gas Monetization?
The creators on social media platforms are the driving force behind the success and growth of their platforms, and dApps and their builders serve a similar purpose on smart contract platforms.
In Web2, these creators are rewarded through a share of the ad revenue their content generates. Fantom aims to bring the same model to Web3 by allowing dApps to earn a share of the gas fees their applications generate, which is related to the amount of traffic they bring to the platform.
By offering this monetization opportunity, Fantom hopes to attract and retain high-grade talent, ensuring a healthy and sustainable network. Both builders and validators now will be recognized and rewarded for their roles on Fantom.