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Fantom Announces Token Fee Rebate Program, Granting 15% Returns To Leading Projects
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Fantom blockchain has unveiled a novel initiative to incentivize projects building on the network, and contributing to substantial usage of gas fees with a portion of fees in paybacks, aiming to promote greater demand for block space. According to a Sunday tweet, under this program, eligible applications will receive a 15% reward based on the gas fees they generate, providing their developers with an additional source of income.
The initiative forms part of the dApp Gas Monetization Program, a strategic proposal approved through a governance vote in January this year. Its objective was to decrease Fantom's burn rate from 20% to 5%, redirecting the ‘remaining' 15% of network fees to sought-after applications built on the blockchain. Fantom hopes to leverage this gas monetization opportunity to strengthen its network infrastructure, attract and retain top-notch talent to sustain a healthy and sustainable network.
Multichain's turmoil delays push crypto entities to remove liquidity amidst market speculation
Multichain, a cross-chain bridging protocol designed for seamless asset transfers between blockchains, has recently been plagued by a series of issues, including transaction delays and rumors surrounding the project's leadership, causing concern and speculation within the crypto community, which have led to a flurry of actions by major players in the industry.
Fantom exited millions of dollars in liquidity from SushiSwap
The Fantom Foundation, the team behind the Fantom blockchain, removed as much as $2.4 million in liquidity from a trading pool for Multichain's native token on SushiSwap on May 24. Etherscan data shows a wallet controlled by the Foundation withdrew approximately 450,000 MULTI and 1,363 ETH from a liquidity pool on the decentralized exchange SushiSwap. This transaction was initially identified by on-chain research platform LookOnChain.
Fantom Foundation Director Andre Cronje told The Block he was not too fussed about the significant exposure of the Fantom blockchain to Multichain, considering that numerous tokens on its network were issued via the protocol. Nonetheless, the Foundation withdrew the liquidity it had been providing through MULTI owing to the prevailing uncertainties. Cronje added that the tokens hadn’t been sold, and Fantom is only awaiting clarity regarding this entire situation before it can resume its liquidity provider status.
To learn more about Fantom, check out our Investing in Fantom guide.
A cautious approach to Multichain industry-wide
Several other prominent crypto entities have taken action regarding the Multichain situation. Chinese crypto investment firm HashKey Group moved $250,000 worth of MULTI to crypto exchange Gate.io. Tron founder Justin withdrew 470,000 of the USDD stablecoin from the Multichain protocol, while Binance temporarily suspended deposits for tokens associated with Multichain on its platform.
Meanwhile, the Stargate DAO, the governing entity overseeing the Stargate bridge, has introduced a proposal to mitigate its exposure to Multichain. Among these measures is segregating pools housing the Multichain-issued stablecoin anyUSDC (commonly used on Fantom) from other pools within the expansive Stargate network. The community has overwhelmingly rallied behind this proposition. Multichain users, on their part, have been grappling with a series of transaction delays originating from a longer-than-expected upgrade on May 21.
The pseudonymous VP of strategic partnerships at Multichain, Mog, told the community that while the bridge/swap mechanism continues to function seamlessly, an upgrade for Router2 routing is pending hence the delays. The future of the cross-chain router protocol remains uncertain, as there have been no updates regarding the whereabouts of the project's co-founder. Speculations about the team's potential arrest in China have circulated, but no concrete information has emerged to substantiate these claims.
To learn more about Multichain, check out our Multichain guide.
