On May 31, the Fantom Opera network launched a groundbreaking program that promises to compensate developers for the gas fees their users generate. The initiative, known as the “Gas Monetization Program,” will reward qualifying developers with 15% of the total gas fees their applications bring in.
First Applications to Benefit
Six Web3 applications, including ParaSwap, Beethoven X, Stargate, LayerZero, WOOFi, and SpookySwap, have already been given the green light for this program. As per the announcement, these applications have thus far earned rewards exceeding 12,000 Fantom tokens, valued roughly at $3,715.
The conception of this program was influenced by the “Web2 ad-revenue model” employed by platforms like YouTube and Snapchat, which remunerate content creators for their input. The driving force behind this initiative is to provide an alternative income stream for developers, paving the way for a self-sustaining Fantom ecosystem.
Program Eligibility and Potential Pitfalls
Despite the program’s appeal, not all apps will qualify. Protocols that have processed fewer than 125,000 transactions or have been operational on the Fantom network for less than three months will be disqualified automatically. While other applications are allowed for the program, Fantom has cautioned that eligibility requirements may vary as the Fantom Foundation evaluates their effectiveness.
Initial discussions around the Gas Monetization Program met with some opposition from users. Critics speculated that the program could deter developers from constructing gas-efficient contracts, with the prospect of higher gas fees translating to more significant FTM rewards.
Nonetheless, Fantom disputes this line of thought. The team asserts that developers are still incentivized to build gas-efficient contracts; failure to do so might leave their apps open to competition. It was clear that applications suspected of exploiting the program could face suspension.
Since December, Fantom has been gearing up to launch the Gas Monetization Program. A 75% reduction in the token burn rate was proposed to fund it. Andre Cronje, director of Fantom Foundation and a decentralized finance architect, announced later that 2023 would see a concentrated effort on “gas reform” to attract more developers and users to the platform.
