IoTeX DAO votes in proposal to share gas fees with…

In the rapidly evolving Web3 space, the success of any blockchain platform hinges on the creativity and ingenuity of its dApp creators. Recognizing developers’ pivotal role in driving adoption, the IoTeX community has voted massively in favor of IoTeX’s Improvement Proposal 15 (IIP-15) for Sharing of Gas-Fee with dApps (SGD).

With its groundbreaking IIP-15, IoTeX aims to unlock a new era of high-level innovation, engagement, and sustainable growth. By sharing a portion of transaction gas fees with dApp developers, IoTeX sets the stage for an ecosystem where creativity thrives, users are captivated, and developers are incentivized like never before.

The IoTeX community has passed the groundbreaking IIP-15 with 98.5% in favor, and 1.5% against the proposal. A total of 224 wallets participated with nearly 157.4 million IOTX staked. The IoTeX Foundation will distribute 224 Soulbound Tokens (SBTs) to reward those who participated in the IIP-15 DAO governance vote.

Becoming the DePIN leader

“The significance of IIP-15 cannot be overstated,” said IoTeX CEO and Co-Founder Raullen Chai. “For IoTeX, it represents another step toward becoming the leader within the burgeoning Decentralized Physical Infrastructure Networks (DePIN) space. It also represents a paradigm shift in how blockchain platforms value and compensate their development community.”

“By proposing the revenue-sharing mechanism through SGD, IoTeX opens the doors for community members to actively participate in shaping the platform’s future and fostering a vibrant ecosystem,” Chai said.

Striking a fair balance

As users interact with dApps on the IoTeX blockchain, a portion of the transaction gas fees is automatically accrued in the SGD treasury. The proposal recommends that 30% of the gas fees be reallocated to the SGD treasury to strike a fair balance and incentivize sustainable growth. At the same time, the remaining portion continues to contribute to the Proof-of-Stake (PoS) rewarding pool. The actual ratio may be subject to adjustment through governance voting.

DApp owners can withdraw their accumulated revenue by initiating a claim action. The SGD treasury verifies the eligibility criteria, including transaction volume and time deployed on the chain, through the SGD registry.

Once the criteria are met, the treasury issues the corresponding rewards. To maintain the integrity and quality of the ecosystem, the IoTeX Foundation implements a review process, approving dApps based on their performance and adherence to guidelines.

Transparency and efficiency

The SGD initiative comprises two main components to ensure transparency and efficient management: the SGD Treasury and the SGD Registry. The treasury module handles gas fee distribution, accounting, and the SGD rewards claims process.

The registry consists of a system contract and an indexer. dApp owners utilize the system contract to register their dApp contracts and reward addresses, while the indexer keeps track of SGD contract addresses, owners, and the number of contract calls.

Implementing this fee-sharing model requires careful consideration to prevent potential abuses. To address this concern, the IoTeX Foundation has set eligibility criteria to qualify for revenue sharing.

DApps must have completed at least 100,000 IoTeX Layer 1 blockchain transactions, have been deployed and running smoothly for at least one month, and receive approval from the IoTeX Foundation.

The Foundation reserves the right to disapprove dApps involved in spam transactions or illegitimate activities, thereby safeguarding the integrity of the SGD program and protecting users’ interests.

Driving innovation

Implementing the SGD feature will be part of an upcoming hard fork, ensuring backward compatibility with existing applications and infrastructure. With this forward-thinking proposal, IoTeX joins a growing movement for blockchain platforms to actively reward their dApp creators, driving a virtuous cycle of innovation, user engagement, and overall ecosystem growth.

As IoTeX continues to expand its reach and influence, IIP-15 solidifies its position as a trailblazer in blockchain technology. Through this revenue-sharing model, IoTeX sets the stage for a new dApp development era that rewards creativity, nurtures innovation, and fosters a new and exciting design space for Web3 applications.