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.

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 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 now will be recognized and rewarded for their roles on Fantom.

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.

How to participate in Gas Monetization?

The Gas Monetization program has established several criteria that dApps must fulfill to participate. With these, the program seeks to prevent spam, clunky dApps, and other extraction loopholes.

To be eligible to participate, each dApp must have:

Completed at least 125,000 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 their effectiveness.

Upon approval to participate in the program, dApps will begin to earn 15% of the gas fees they generate. The FTM earned through Gas Monetization can be used at the dApps' discretion.

To apply for your dApp to participate in the Gas Monetization program, fill out the official application form.

Quarterly bonus

The Gas Monetization program decreased the transaction 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 is distributed to the top twelve earning projects through a quarterly bonus.

These twelve projects are divided equally into four tiers that determine the amount of FTM they receive quarterly:

• Tier 1 (top three projects): 40% of FTM

• Tier 2 (next three projects): 30% of FTM

• Tier 3 (next three projects): 20% of FTM

• Tier 4 (final three projects): 10% of FTM

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.