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

    Fantom will use 10% of the burn 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’s ecosystem.

    The governance proposal was created on 5 July and sought the community’s approval via a vote. According to the Fantom Foundation, the vote passed on Tuesday, 26 July by a majority of 99.75%.

    What’s the Ecosystem Support Vault?

    The Ecosystem Support Vault allows Fantom to support new projects and ideas on the Fantom Opera network via funds set aside from a percentage of the 30% transaction fees burn rate.

    Through the proposal, 10%, or a third of the 30% burn fees will go to a vault controlled by Fantom validators and stakers. 

    The community will oversee the application of the funds on key ecosystem projects, doing so via on-chain governance mechanisms to ensure a decentralised approach is maintained.

    Fantom is a high performance blockchain fully compatible with Ethereum and has seen over 200 decentralised applications (dApps) deployed.

    These include apps across decentralised exchanges (DEXs), Lending and Borrowing, non-fungible tokens (NFTs) platforms, GameFi, wallets and Cross-chain Bridges. Top DeFi protocols on Fantom include Aave and Alpaca Finance.

    Notably, the adoption of the governance vote means Fantom’s burn rate is effectively 20%.

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