Fantom releases decentralized funding system called ecosystem vault

Quick Take

  • Fantom has released a decentralized funding system to finance new projects, dubbed the “ecosystem vault.”
  • The vault will get 10% of all transaction fees paid on the network, which will be granted to projects.
  • To apply for funding, projects will have to make a governance proposal and get approved via an on-chain vote.

Layer 1 blockchain Fantom has launched a decentralized funding mechanism aimed at financing blockchain projects through a community-driven governance process.

Known as the "ecosystem vault," the mechanism provides an opportunity for projects to secure funding in their efforts to build dApps on Fantom, an official blog post explained. It provides a way in which developers can obtain capital without relying on intermediaries or external sources of finance.

The ecosystem vault will get 10% of transaction fees paid on the blockchain in FTM — the blockchain’s native asset which is controlled exclusively by FTM stakers. The decision to fund this vault was passed in July 2022.


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To apply for funding, projects will have to create both a forum post and governance proposal get approved via an on-chain vote. These proposals will then be voted on by members of the community, with at least 55% voting approval needed from voters for a successful grant. 

The payments will be distributed using Llamapay — an automated crypto payments service. Only the wallet addresses provided in the application will be paid. The maximum amount that can be requested will be equal to the total supply of Fantom tokens in the vault at the time of the application. This vault currently holds about 69,000 FTM tokens (currently valued at about $20,000).

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]


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