Fuel unveils the FUEL tokenomics with a total supply of 10 billion, focusing on decentralizing the chain, developing the ecosystem, and driving Layer 2 technology innovation.
Layer-2 Fuel announces tokenomics, airdropping 20% of the total FUEL supply to users
On the evening of December 10, 2024, the layer-2 solution Fuel Network introduced its FUEL token in the form of an ERC-20 standard on the Ethereum mainnet, while also announcing the tokenomics and detailed allocation schedule.
Fuel Genesis is coming.
— Fuel (@fuel_network) December 10, 2024
Introducing FUEL—the native token of the Fuel network.https://t.co/Z9KfE1MZWr pic.twitter.com/IauB1ofxEF
Specifically, the FUEL token will have a total supply of 10 billion and the tokenomics will be distributed as follows:
- 20% of the total supply - For the community (Airdrop): Early supporters of the Fuel ecosystem, including participants in the Fuel Points program and the incentivized testnet, will receive tokens during the TGE in the form of an airdrop. Unused tokens may be used to establish the sequencing network. All staking rewards will be used for community activities.
- 15.4% - Allocated for the ecosystem and protocol research and development activities: Unallocated tokens will support the establishment of the sequencing network, while staking rewards will be used for ecosystem development activities and providing incentives on Layer 2.
- 15.4% - Ecosystem and protocol research and development activities 24: Unlike the above, the tokens in this group will be locked and released on a 24-month linear vesting schedule. The tokens can be staked to support the sequencing network and drive ecosystem development.
- 9.8% - Contributors 48: Tokens for the project's core contributors, released linearly over 48 months.
- 6.2% - Contributors 24: Includes past and present contributors to Fuel, with a 24-month linear vesting schedule.
- 33.1% - Investors: Tokens for investors who have invested in the project, to be distributed linearly over 24 months from 2020 to 2022.
Fuel Network is an layer-2 solution on Ethereum, using a Modular Execution architecture and a new programming language to address the limitations of the Ethereum Virtual Machine (EVM). The primary goal of Fuel Network is to create a flexible, secure, and highly scalable system for decentralized applications.
Fuel's Ignition network uses the FuelVM virtual machine architecture, providing suitable performance to scale decentralized applications (dApps). FuelVM, combined with the Sway programming language built on Rust and a UTXO-based asset-centric model, allows the chain to operate on standard user hardware, resulting in low usage costs.
Fuel Labs, the organization behind the project, successfully raised $80 million in 2022, affirming the significant potential of the ecosystem and the FUEL token - playing a crucial role in decentralizing the Fuel chain, helping to reduce transaction fees, and incentivizing dApp development.
According to the development team, the FUEL token will be used to secure the Fuel sequencer network and establish a new economic structure to eliminate transaction fees for users. This will be achieved through a "application-specific sequencing" mechanism, where Fuel developers can stake FUEL tokens into their applications, receiving rewards while users do not need to pay gas fees.
The FUEL token is expected to TGE within the next 2 weeks. However, there is a possibility that a public sale will appear in 1 week through the Impossible Finance, Bitget, and Legion platforms in an effort to expand the project's community.
While our community forms the backbone of Fuel, we're eager to welcome newcomers into our ecosystem.
— Fuel (@fuel_network) December 10, 2024
Alongside our ongoing Phase 2 Points Program, we will collaborate with @legiondotcc, @impossiblefi, and @bitgetglobal to expand our community before launch.
Further details… pic.twitter.com/8dBVydTkBV
Compiled by Coin68
