Fantom Opera network has launched a Gas Monetization Program that will pay developers for the gas fees incurred by users of their apps. Announced on May 31, the program will provide eligible developers with a 15% share of the total gas fees their apps generate. Six Web3 apps have already been approved for the program, including ParaSwap, Beethoven X, Stargate, LayerZero, WOOFi, and SpookySwap. These apps have already generated over 12,000 Fantom (FTM) in rewards, valued at approximately $3,715.
The Gas Monetization Program was inspired by the “Web2 ad-revenue model” implemented by social media sites that pay content creators for their contributions. Fantom’s team hopes that paying developers for their contributions will provide an alternative source of revenue that could lead to a sustainable ecosystem for Fantom. However, not all apps are eligible for the program, with protocols that have completed less than 125,000 transactions or have been live on the Fantom network for less than three months automatically excluded. Other apps can apply to become part of the program, but Fantom warned that the criteria are subject to change as the Fantom Foundation evaluates their effectiveness.
When the Fantom team first announced the Gas Monetization Program, there was some pushback from users. Some experts believe that it might discourage developers from creating gas-efficient contracts, as higher gas fees would ultimately result in greater FTM rewards for them to claim. However, the Fantom team believes that app developers will still need to create gas-efficient contracts, otherwise their apps will be challenged by competitors. The team clarified that apps abusing the program may be suspended from participation.
Fantom has been preparing for the Gas Monetization Program since December 2022, when it proposed a 75% cut to the FTM token burn rate to finance it. Later that month, Fantom Foundation director and decentralized finance architect Andre Cronje announced that the team would focus on “gas reform” in 2023 to onboard more developers and users.
The Gas Monetization Program is a crucial aspect of Fantom’s ongoing efforts to create a sustainable ecosystem for dApps and network participants. By providing developers with an alternative revenue stream, Fantom hopes to attract more developers to the platform and improve network participation. Developers benefit from additional income, while Fantom benefits from the added recognition and exposure that the program generates. Ultimately, the Gas Monetization Program is an innovative and promising solution to the challenges associated with creating an open and sustainable blockchain ecosystem.