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Gas Monetization

What is Gas Monetization?

The Gas Monetization program on Fantom aims to provide high-quality dApps with a sustainable income, retain talented creators, and support network infrastructure. The program offers dApps a 15% share of the gas fees they generate.
The reward is made possible by a decrease in the burn rate of FTM from 20% to 5%, which leaves the gas fees paid to validators unchanged. With Gas Monetization, Fantom seeks to foster a thriving ecosystem for builders, similar to the ad revenue model on traditional web platforms.

Why implement Gas Monetization?

The creators on social media platforms are the driving force behind the success and growth of their platforms, and dApps and their builders serve a similar purpose on smart contract platforms.
In Web2, these creators are rewarded through a share of the ad revenue their content generates. Fantom aims to bring the same model to Web3 by allowing dApps to earn a share of the gas fees their applications generate, which is related directly to the amount of traffic they bring to the platform.
By offering this monetization opportunity, Fantom hopes to attract and retain high-grade talent, ensuring a healthy and sustainable network. Both builders and validators will be recognized and rewarded for their roles on Fantom.

How does Gas Monetization work?

The Gas Monetization program has established several requirements that dApps must fulfill to participate. With these criteria to participate, the program seeks to prevent spam, clunky dApps, and other extraction loopholes.
To be eligible to participate, each dApp must have:
Completed at least 1,000,000 transactions
Been live on Fantom for at least 3 months
Note that the above criteria are measured against each individual smart contract deployed on the Fantom mainnet.
The criteria are subject to change as the Fantom Foundation assesses the effectiveness of the requirements — any changes will be made based on advice from the community.
Upon approval to participate in the program, a dApp will begin to receive 15% of the gas fees they generate. The FTM earned through Gas Monetization can be used at the dApp's discretion.
At present, the Fantom Foundation is working with a select number of established projects that meet the participation criteria. Once the application process is open to the public, this page will be updated with further instructions.

Ineligible transactions

The Gas Monetization program decreased the burn rate of FTM from 20% to 5%, and the resulting 15% of gas fees were allocated to dApps participating in the program.
However, not all transactions on Fantom stem from dApps that are participating in the Gas Monetization program. The 15% share of gas fees from ineligible transactions gets stored in a multisig wallet and is used for:
  • Increasing bonuses for participating dApps
  • Supporting public good infrastructure subsidies (e.g. RPC providers)
  • Donating to Gitcoin matching grants or the Ecosystem Support Vault
  • Rewarding successful content creators
  • Sending to the burn address

Terms & conditions

The Fantom Foundation reserves the right to suspend rewards to participating dApps for any reason deemed necessary at its sole discretion, including fraudulent user activity or the overall well-being of the Fantom ecosystem.