Fantom announces on-chain funding mechanism Ecosystem Vault
- Fantom Foundation, the platform behind the Fantom (FTM) blockchain announced the launch of Ecosystem Vault on Friday.
- Vault is a decentralised funding mechanism that will be financed by 10% of FTM transaction fees.
- The funds in the vault are available to projects that get 55% approval in community-driven governance vote.
Fantom, a scalable Layer-1 blockchain platform, has officially launched Ecosystem Vault, a decentralised funding pool that will empower and help builders deploy new community-driven projects on the blockchain.
Vault to boost Fantom’s dApps ecosystem
Announcing that Vault was officially live, Fantom noted in a blog post that the funding mechanism will encompass governance proposals from the community.
The project represents Fantom’s continuing evolution as the community eyes further decentralisation, the Fantom Foundation team wrote.
Vault’s on-chain mechanism allows for a funding profile where projects and developers seeking to build decentralised apps (dApps) in the ecosystem can secure financing. As noted above, the funding pool also gives the Fantom community a chance to contribute to the growth of the blockchain via their funding decisions.
Per the Fantom Foundation, the Ecosystem Vault will get funds from 10% of transaction fees. The community controls these funds, which are a result of a reduction in the burn rate of native token FTM.
Anyone can apply for the funds in the Vault, a process that requires applicants to create a Fantom Governance proposal (has 100 FTM fee). Afterwards, the proposal will need approval from 55% of the community based on 55% quorum. The Foundation tweeted:
5/ A proposal must receive at least 55% approval with 55% quorum to be considered successful. @Llamapay_io will be used to distribute all funding. Only wallet addresses included in the application can be paid.
— Fantom Foundation (@FantomFDN) January 19, 2023
As of Friday, 20 January, 2023 at 11:06 am ET, the vault held roughly 69,247 FTM tokens valued at just over $21,000.