Fantom Foundation, the team behind the Layer 1 blockchain Fantom, announced yesterday the launch of the “Ecosystem Vault”, a fund created to empower builders on Fantom by providing a decentralised route for supporting initiatives, concepts, and creations through a procedure based on a community-driven decision process.
The Ecosystem Vault is an on-chain fund sponsored by 10% of the transaction fees on Fantom and managed by the community as part of Fantom’s ongoing evolution toward decentralisation. The initiative was made possible by lowering the $FTM burn rate and rerouting the resulting 10% to the Vault.
The Vault offers projects an excellent chance to obtain funding as they work to create creative dApps on Fantom. Additionally, Fantom Foundation sees this as an opportunity for the Fantom community to unite and influence the platform’s future through its financing selections.
How do Projects Have to Apply for Receive The Funding?
Projects must apply for financing if they have a project deploying and expanding on the Fantom network. The entire supply of FTM in the Vault at the moment of the application determines the maximum amount of funding they could seek. To apply, two steps are required:
- Create a Forum Post: Projects should describe themselves in as much detail as possible, including what it is creating or enhancing, why it merits funding, timetables and milestones, KPIs, team wallet addresses, and the amount of FTM required;
- Create a Governance Proposal: There is no need for projects to provide further content in the proposal’s description, just the link to their forum post. A 100 FTM submission fee is needed for the project.
For an application to be successfully approved, the proposal must receive at least 55% approval, with no less than 55% of FTM stakers in attendance.
For the time being, only the wallet addresses specified in the application can be paid because Fantom Foundation is using Llamapay (an automated crypto payments service) to disburse funding. There will only be five projects receiving funds at once during the Vault’s initial launch.
A minimum streaming time applies to all payouts and is based on the quantity of FTM requested:
- 500,000 = one streaming month.
- 1,500,000 to 1,001,001 Equals three months of streaming.
- 1,5001 to 3,000,000 Equals a six months streaming subscription.
- 3,000,0001 and up = a year’s worth of streaming.
By creating this Vault Ecosystem strategy for funding, Fantoms aims to keep innovating and attracting more projects and users in the long run.
Accordingly, DefiLlama, there are currently 273 protocols deployed in the Fantom ecosystem, with a Total Value Locked (TVL) nearing $450m, being SpookySwap, the clear market leader, with $94.84m in TVL, which represents a dominance of 21.08% of the total TVL in the Fantom ecosystem.
~ By Jordano M. Z. ~
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