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 an effective 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.

(By Vishal Chawla)