A portion of the burn fee, equal to ten percent, will be allocated by Fantom to fund various ecosystem-related projects.
The Fantom (FTM) community has voted to approve an on-chain governance proposal to encourage the Layer-1 platform’s ecosystem to continue its natural process of evolution.
On July 5th, the governance proposal was drafted, and a vote was held to seek the community’s acceptance of the idea. According to information from the Fantom Foundation, the vote was successful on Tuesday, July 26, thanks to an overwhelming majority of 99.75 percent.
Ecosystem Support Vault governance proposal voting has concluded.
Vote: Passed ✅ https://t.co/MaDhvbrJss pic.twitter.com/w3nSKG7XBQ
— Fantom Foundation (Sonic Labs Coming Soon) (@FantomFDN) July 26, 2022
Ecosystem Support Vault, What Is It?
Using money that has been set aside from a portion of the 30 percent transaction fee burn rate, the Ecosystem Assist Vault enables Fantom to support innovative ideas and initiatives being developed on the Fantom Opera network.
A safe deposit box managed by Fantom validators and stakers will get ten percent of the thirty percent that is contributed as burn fees under the terms of the proposal.
The community will be responsible for monitoring the expenditure of the funds on important ecosystem projects. This will be done through on-chain governance mechanisms to guarantee that a decentralized approach is preserved.
Fantom is a high-performance blockchain that is fully interoperable with Ethereum. To date, it has deployed over 200 decentralized applications or dApps.
Apps that work across decentralized exchanges (DEXs), lending and borrowing platforms, non-fungible tokens (NFTs) platforms, GameFi, wallets, and Cross-chain Bridges are examples of these applications. Aave and Alpaca Finance are two of the most important DeFi protocols on Fantom.
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Notably, after the governance vote was approved, Fantom’s burn rate effectively increased to twenty percent.