Fantom has launched a decentralized funding mechanism known as the “ecosystem vault” to finance blockchain projects through a community-driven governance process.
Projects can secure funding to build dApps on the Fantom blockchain without relying on intermediaries or external sources of finance.
The ecosystem vault receives 10% of transaction fees paid on the blockchain in FTM, the blockchain’s native asset, which is controlled by FTM stakers.
To apply for funding, projects must create a forum post and governance proposal that is voted on by community members, with at least 55% approval needed for a successful grant.
Payments are distributed using an automated crypto payments service and the maximum amount that can be requested is equal to the total supply of Fantom tokens in the vault at the time of the application.
This development is expected to accelerate the development of dApps on the Fantom blockchain and drive further adoption of the platform.