The Fantom community passed a governance proposal to form an Ecosystem Support Vault to fund projects from a percentage of transaction fees currently being burned.Â
The voting for the proposal commenced on July 5 has collected the majority of votes in favor and marked a one-sided win. The proposal got 99.75% of votes in support of the plan.
The last date for the voting was October 3, however, there was a provision with a proposal that closed the voting abruptly when the vote crossed the 55% quorum requirement.
With this proposal, Fantom will divert 10% transaction fees to Ecosystem Support Vault, which is a third of the network’s 30% burn fee.
Fees burning mechanism destroys transaction fees instead of giving it to validators as a reward. By doing so, the networks continuously work to reduce total supply and prevent inflation of tokens.
Now, 10% of this burn token supply will go to the vault, which means the burn rate will be reduced to 20%. In a nutshell, the FTM token supply that is being destroyed each year will be reduced.
Fantom’s Special Fee Contract that distributes rewards to Fantom stakers and delegators will be accountable to deliver custody of the vault’s funds.
So now, Fantom projects striving to secure grants, can now apply for funding. These applications will also proceed through proposal and voting.
