Layer 1 blockchain platform Fantom has unveiled a new decentralized funding mechanism to finance blockchain projects through a community-driven governance process.

The mechanism, known as the “ecosystem vault,” will provide an opportunity for projects to secure funding to build dApps on the Fantom blockchain, without relying on intermediaries or external sources of finance.

The ecosystem vault will receive 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 the vault was passed in July 2022.

To apply for funding, projects will have to create both a forum post and a governance proposal, which will then be voted on by members of the community.

Proposals will need at least 55% approval from voters to be successfully granted.

The payments will be distributed using Llamapay, an automated crypto payment 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. Currently, the vault holds about 69,000 FTM tokens, which are valued at around $20,000.

The ecosystem vault is a unique and exciting development for the blockchain community, providing a decentralized and community-driven approach to funding blockchain projects.

It is expected that it will help to accelerate the development of dApps on the Fantom blockchain and drive further adoption of the platform.