Fantom Foundation has announced they will be committing 370,000,000 Fantom (FTM) to a new rewards program.
Fantom announced on Monday the launch of a new 370 million FTM inventive program for builders that starts today. “If you’re a protocol team, we’ll reward you for sustaining and increasing your TVL on Fantom,” said the company in a recent tweet.
The idea for the program came about over the last few months when Fantom Foundation began to notice “a lot of exciting things going on in regards to liquidity mining,” according to a press release. Fantom noted that other foundations behind their unique chains had begun to provide rewards for users of protocols who deploy on top of their respective chains. Fantom wanted to also reward users but wanted to do so in its own way. “The program was developed by Fantom Foundation to “better align incentives between users, builders, and the network.”
Fantom says that the builders themselves know how best to allocate funds and “whether they should be provided to build the protocol, or if they need to be used for liquidity mining.” The program does not “play favorites” and will provide the majority of resources available to every dev team that deploys on Fantom.
Starting on August 30, protocol teams will have the ability to apply for these rewards from Fantom. Rewards are based on the team’s total value locked and scale from 1 million FTM to five million in its first iteration. The specifics will be altered depending on specific builder needs.
Fantom says they will be “committing 370,000,000 FTM to this program.”
Requirements to earn rewards from the program
Fantom Foundation added to the press release a list of prerequisites for earning rewards from the new program. First off, a protocol team may apply for rewards if the TVL on said protocol remains north of a “time-weighted-average of $5 million or $100 million for an extended period of time.” The specific period of time is not stated in the release. Next, Fantom will require that teams provide information about the protocol, a team address that is publicly verifiable, and a DeFiLlama link to track the total value locked.
If and when the Foundation approves an application, it begins a two-month-long cliff and rewards will start to vest monthly.
The requirements add that if at any point the time-weighted average of the protocol dips below the $5 million minimum threshold, all rewards will be put on hold until the TVL recovers. Fantom adds that the program applies to protocols that are both new and existing.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.