Fantom Passes new Proposal: Will FTM Propel itself toward Recovery?

Fantom [FTM], an open-source smart contract platform, announced on January 5 that it had passed the governance proposal to establish gas monetization for decentralised applications (dApps). According to its Foundation, 55.9% of its community voted to increase the network’s revenue.

The process resulted in 99.8% of voters supporting the November 2022 proposal on the ballot, with only 0.1% voting against it.

Fantom, which experienced a decline in the first half of 2022, described this acceptance as a supplement to its next growth phase. Andre Cronje, Fantom’s exiled co-founder, revealed the project’s plans for 2023 last week.

The Fantom Foundation stated that the model would allow more developers to build on the Fantom network in addition to serving as a revenue source. The layer-1 platform posted the following tweet:

“dApp gas monetization takes the framework of a revenue model that already works in Web2 (ad monetization) and adjusts it to incentivize developers building on the Fantom network. It is a powerful tool to attract and retain high-performing dApps.”

FTM was unable to restart its development activity, regardless of the progression. According to Santiment data, Fantom’s development activity was 0.48 at the time of publication.

This metric is used to assess a project’s commitment to continuous network upgrades. With its current position, Fantom may not have actively begun pushing toward its 2023 roadmap.

A similar situation occurred with its network growth, which was reduced to 27. This decline meant that user interest in Fantom was at its lowest point.

As a result, fewer new addresses were created on the network. If the development activity and network growth continue, the situation could complicate Fantom’s recovery mission.

Unfortunately, Fantom’s subsequent updates did not generate significant social attention. Although on-chain data showed that FTM social dominance had improved to 0.137%, it was still far from the previous year’s notable spike on December 23.

This metric indicated that the hype surrounding FTM was insufficient to spur increased participation. The social volume also indicated that there was little interest in the cryptocurrency.

Meanwhile, responses to the Fantom announcement indicated that the community vote was not an accident. For some, the development could aid Fantom’s longevity and survival. According to WhaleStats, FTM was also one of the top ten trading tokens used by ETH whales.