Phantom (FTM) Gas Incentives: The Secret Sauce to Reclaiming L1 Dominance

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Phantom (FTM), a leading Layer 1 (L1) blockchain platform, has launched a new gas monetization program to encourage high-quality decentralized applications (dApps) and attract top talent to the ecosystem.

with recent Announcement The community is brimming with enthusiasm for the future of Phantom, thanks to the long-term vision for the protocol by Andre Cronje, the co-founder of the blockchain platform.

Phantom’s gas monetization, which just went live on May 28, is one of the most anticipated updates for the platform. The governance proposal was first approved in January 2023 with an overwhelming 99.8% of the vote, demonstrating community support for the initiative.

Phantom launches gas monetization program

Gas Monetization is an incentive program to reward high quality DApps for the fees they generate. These DApps will receive a 15% kickback on all gas fees generated, encouraging growth and attracting more developers to the ecosystem. The money for this bounty comes from the fact that the FTM burn rate will be reduced from 20% to 5%.

It is a win-win situation for both the developers and Phantom Network. Developers are compensated for the value they create on the network, while the network benefits from increased adoption and usage. The reduction in the FTM burn rate also helps control inflation and provides more stability to the token’s value.

Francesco, a leading figure in the blockchain industry, commented This growth spurt is exactly what Phantom needs to achieve its goals. With gas monetization, the platform is taking an important step to become one of the leading L1 giants in the blockchain industry.

However, the mechanism can be targeted by spam dApps and malicious actors trying to exploit it. To prevent such exploitation, Fantom has implemented certain criteria that dApps must meet in order to be eligible for gas monetization.

Phantom Eligibility Criteria

To be eligible a dApp must have completed at least 1 million transactions and must have been live on the Phantom Network for at least 3 months. These parameters are valid for each smart contract on the Phantom mainnet and may be subject to change during the course of the program depending on their effectiveness.

Once approved for the program, dApps will receive 15% of the gas fees they generate. Received FTM tokens are unlocked and can be used as per dApps. However, what happens to the 15% share of gas charges incurred by DAPs that do not participate in the gas monetization programme?

These transactions are ineligible and do not qualify for the 15% portion of the gas fee. The Phantom Foundation has clarified that only DApps that meet the eligibility criteria can participate in the gas monetization program and receive rewards for their contributions to the network.

The Foundation also reserves the right to suspend rewards from participating dApps for any necessary reason, including fraudulent user activity or the overall well-being of the Phantom ecosystem.

The Gas Monetization Program is a great opportunity for DApps to showcase their value and get rewarded for their contribution to the network. However, it is necessary to ensure that spam dApps or malicious actors do not exploit the program.

This new approach is just one of a series of incentives created by Fantom to attract developers and keep them engaged in the ecosystem. The long-term vision of the platform includes creating a decentralized finance (DeFi) ecosystem that is fast, secure, and user-friendly with a variety of dApps and tools that make it easier for users to interact with the network.

Featured image from Unsplash, chart from TradingView.com