The Fantom community is voting on a governance proposal that seeks to reduce the rewards paid to network validators. The community wants to reduce the rewards it receives from the staking system.

Currently, Fantom rewards users for “locking” their FTM tokens – the blockchain’s native asset – on the network. In this way, users with 50,000 staking FTMs can also run validator nodes to process transactions on the network and earn rewards.

Today, the reward is 13% for staking tokens with a one-year vesting period. These rewards come from transaction fees paid on the network and are scheduled to be distributed by 2024.


However, Fantom’s new proposal advocates lowering the staking reward rate to be in line with the market average. According to the proposal, Fantom’s fee is higher than other large “notable” Tier 1 networks. This includes, for example, Ethereum, Solana, Avalanche and Binance Smart Chain (BNB).

In addition, the proposal advocates lowering the rate due to the increased volume of staking rewards for validators. FTMScan data shows that there was a 120,000% increase in validator earnings between January 2021 and January 2022.

By reducing the reward rate for validators, the proposal could extend FTM emissions beyond 2024. The proposal has five voting options, four of which give the option of reduced rates from 3% to 6%.

These fees will extend MTF emissions between four to nine years (2026 to 2031). Meanwhile, the fifth voting option is to not change the reward rate that will cause Fantom issues to end in 2024.

Voting on the proposal began on Monday and could run until February 4, 2023. Voting could end on August 15 if polls reach the 67% quorum mark. The quorum is currently at just 1.8% at the time of publication.

The polling page data shows 99% of voters favor a 6% reward rate on the network. Fantom issues will continue for another four years if that reward rate emerges as the winner of the vote.

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