Fantom’s FTM tokens have increased by 50% since the company announced a $315 million DeFi incentive program.
Fantom is a blockchain platform built on the Directed Acyclic Graph, also used by Hedera Hashgraph and IOTA.
Many cryptocurrency community members appear to have been reassured by the announcement of the launch of an incentive program within the Fantom ecosystem. Because the FTM token increased in value by 50% on the same day, reaching $0.89 against the morning rate of $0.56 per token on the Binance cryptocurrency exchange.
The various teams in charge of running the protocols can now apply for a Fantom Foundation Bounty. In this case, remuneration is directly proportional to the project’s total blocked cost (TVL). Grants will range from 1 million FTM tokens (approximately $820,000) to 5 million FTM (over $4.1 million). The total amount of grant funds allocated exceeds $315 million.
The Fantom Foundation believes that the development teams that comprise the network are better than its participants at allocating funds. Therefore, instead of dividing funds evenly among several favorite protocols, management decided to give each development team operating on the Fantom blockchain platform a chance to prove themselves.
The Fantom Foundation mentioned the requirement for “proof of value” to participate in the DeFi program when discussing TVL participating projects that can receive grants. To accomplish this, the protocol’s TVL value must be maintained at a weighted average level in the range of 5 to 100 million dollars over an extended period.
At the moment, the FTM token’s growth rate has slowed slightly, with its value on Binance falling to $0.80. However, according to CoinMarketCap data, its daily rate of growth is still around 20%. At the same time, the token set a new record on May 10, 2021, and it has yet to match its success since then. However, if the news backdrop remains as favorable to the project as it has been in recent days, the FTM price will undoubtedly rise above $1 per token.