The Fantom Foundation announced that it has created a new governance proposal. The foundation made the announcement via a post on Twitter on July 5.
According to the update, the new governance proposal seeks to encourage decentralization of the Fantom ecosystem by empowering the community of validators and stakers. Community members, validators and stakers are encouraged to participate in the voting process for the support vault.
Funding from Burning
According to the foundation, the funding of the vault would comprise one-third of the subsisting burn rate of the network transaction fees. This fraction of the 30% burn rate would be diverted to the Ecosystem Support Vault. The validators and stakers would be in control of the vault funds through the on-chain governance system.
A community member, @SlothtopiaNFT concedes that this is a good proposal. According to them,
“This is one more way the FDN and its stakers/validators can help its developers“
The ESV would play an active role in the community funding of viable projects built on the Fantom blockchain. The release by the foundation says that submission of projects and creation for funding should be done via the governance portal of the fwallet.
Voting Mechanism for Approvals
Such proposals should be detailed to give room for community feedback. The ecosystem governance will approve or reject proposals via the existing voting mechanisms. 55% turnout, as well as 55% agreement rate is required for a proposal to be passed.
📢 A new governance proposal has been created: Ecosystem Support Vault
As part of Fantom’s continuous evolution toward decentralization, this proposal empowers the community of validators & stakers through an on-chain Ecosystem Support Vault.
Vote open👇 https://t.co/u0ZBeBiAkO
— Fantom Foundation (@FantomFDN) July 5, 2022
Any Project Could Be Supported
On the modalities for the funding of the vault, the statement said,
“One third of the existing 30% burn rate from transaction fees would be diverted to the Ecosystem Support Vault. These diverted funds would be controlled by the validators/stakers via on-chain governance and proposals.”
This means that 10% of all the transaction fees made on the network goes to the vault.
The Fantom Opera network ESV is available for all types of projects. The essence of proposal submission is to convince the community that the project is worth funding, the release said.