20 Jan 2023
Ecosystem Vault, a decentralized funding system by Fantom
Ten percent of all network transaction fees will be allocated to the vault to fund new initiatives. Funding requests will be considered only after projects submit governance proposals and receive consensus through an on-chain vote
To finance blockchain projects through a community-driven governance process, Fantom has introduced a decentralized funding mechanism. According to an official blog post, the mechanism referred to as the “ecosystem vault” gives projects a chance to secure funding as they work to create dApps on Fantom. It offers an efficient method for developers to get funding without relying on intermediaries or outside funding sources.
The ecosystem vault will receive 10% of all transaction fees paid on the blockchain in FTM, which is the native asset of the blockchain that is only under the control of FTM stakers. In July 2022, the decision to fund this vault was made.
Projects must submit a governance proposal approved by an on-chain vote and a forum post to be considered for funding. Following this, the community will vote on these proposals, with a successful grant requiring at least 55% of the vote. Llamapay, a program for automatic cryptocurrency payments, will be used to distribute the payments. The application will only pay the wallet addresses you provided. The amount of Fantom tokens available in the vault at the time of the application will determine the maximum amount that can be requested. Around 69,000 FTM tokens, currently worth around $20,000, are kept in this vault.
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