Ecosystem Support Vault
(Discussion for Upcoming Governance Vote)
TL:DR Redirect one third (10% of total transaction fee value) of the existing burn rate (30%) to an “Ecosystem Support Vault” held via the SFC (Special Fee Contract). The SFC is controlled by the validators/stakers via on-chain governance and proposals…
As part of Fantom’s continuous evolution toward decentralization, this proposal empowers the Fantom community of validators and stakers through an on-chain Ecosystem Support Vault.
This Vault will provide an alternative avenue via community driven decisions for the funding of projects, ideas, and creations on the Opera network.
How is it funded?
Today, 30% of all transaction fees on the Opera network are “burned.” If passed, this proposal would redirect 10% of the current 30% burn allocation towards an Ecosystem Support Vault.
This would result in 10% of all network transaction fees going to the Vault while continuing to burn the remaining 20% of transaction fees.
Who decides where it’s spent?
All proposals regarding use of ecosystem funds should be submitted via the governance portal through the fWallet. We strongly recommended including a detailed submission here to provide additional detail and establish a place for community feedback.
The validators and stakers will then approve or deny proposals through the existing voting mechanism.
In order to pass, proposals require a 55% turnout + 55% agreement rate.
What are the requirements for a submission?
Three key points to remember when making a submission.
- Clearly outline why and how it will benefit the Fantom network/community
- Specify the amount of FTM needed and the duration of payments (please head to “Payments” heading for more information)
- Include a wallet address (preferably mutli-sig)
There are no limits on projects or objectives seeking funding. The submission’s purpose is to convince the community to vote for your idea!
Who will provide custody
The Special Fee Contract (SFC). The SFC will ultimately be administered by a governance contract, which in turn is administered by token holders.
Payments
Example 1) Project A applies for a 100,000 FTM Grant / streamed over 1 year
Example 2) Project B applies for a 5,000 FTM grant / streamed over 2 months
If the vault’s FTM value is below the grant’s submission requirements, the stream will pause until further network fees are paid into the vault.
Please note that automated payment functions will not be available immediately at launch. Payments will initially be manually executed via the Fantom Foundation until further notice. For these manual payments, we will be looking to leverage tools such as LlamaPay to distribute the full payment amount to projects whose proposals are approved by the Ecosystem Vault. The payment will be streamed over the period of time outlined in their application. We strongly encourage voters and proposers to add streaming and vesting to the payments
What are the biggest risks?
The three largest risks understood today are:
- Malicious submission passes
- A proposal is made without the intention to uphold proper use of funds.
- Funding Estimation Error
- A project over-promises and cannot deliver with the received funds.
- Network Control
- If a single entity or group controls over 50% of the voting power, they can fund themselves or promote projects they control.
Pros & Cons Evaluation
Pros:
- The Ecosystem Support Vault will be self-governing and entirely run by the community.
- On-chain proposals and fund disbursements ensure complete transparency.
- The fund will continue to run and grow in perpetuity with the Fantom network.
- The fund represents another avenue for project funding.
- Both new and established projects can apply for smaller amounts of funding to support specific initiatives.
Cons:
- Fewer fees are burned (30% to 20%), making the network less deflationary
Terms & Conditions
As the Ecosystem Vault is a prototype, the Fantom Foundation reserves the right to halt any payment stream indefinitely if fraudulent user activity is suspected or if the Foundation believes it presents a negative risk to the Fantom ecosystem.
