Fuel Network has launched FUEL, its native coin as it plans to eliminate transaction fee to onboard more users.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Fuel Network, an Ethereum-based optimistic rollup protocol, has announced a major step toward decentralization with the launch of its native token, FUEL. The project introduces 10 billion tokens designed to eliminate transaction fees, marking a significant milestone in blockchain infrastructure development.
The tokens are designed to revolutionize the user experience, creating a more accessible and scalable ecosystem. This initiative is designed to challenge the barriers that often stifle adoption.
Fuel’s launch of the native token is not just about creating a new digital currency. It represents a major change in how blockchain systems work. The token, an ERC-20 type, will help decentralize the Fuel network, making it an important part of the blockchain industry.
Fuel Genesis is coming.
Introducing FUEL—the native token of the Fuel network.https://t.co/Z9KfE1MZWr pic.twitter.com/IauB1ofxEF
— Fuel (@fuel_network) December 10, 2024
The issuance of 10 billion FUEL tokens aims to distribute control and value throughout the network, empowering both users and developers with significant ecosystem stakes. One of the most exciting features of Fuel’s token is its ability to eliminate transaction fees on the network.
This is possible through a mechanism called application-specific sequencing. Developers can lock their FUEL tokens to ensure transaction order within their platforms. This system not only rewards developers with tokens.
It also allows users to make transactions without the typical gas fees associated with blockchain operations. By removing this major barrier, Fuel is making Web3 a technology everyone can use regardless of economic status.
Several projects, including OpenSea and MetaMask, have attempted to eliminate or reduce gas fees in various ways. Impressively, the Ethereum blockchain gas fee has dropped to a 5-year low, as reported in August.
Fuel recognizes that its community is vital to its success. As such, 20% of the FUEL tokens is allocated to the community. This will be used to reward participants in the Points Program and testnet users.
This focus on community engagement ensures that early adopters and active participants are incentivized. Fuel also plans to expand its user base by partnering with influential platforms such as Legion, Impossible Finance, and Bitget.
These partnerships will include incentive programs to drive adoption and ecosystem participation further.
Fuel is working toward a fully decentralized network by gradually shifting control from a small group of validators to a broader, distributed set of participants. For now, the management of the network hinges on a limited number of validators.
Over time, the project plans to increase this number to strengthen security and make the system more resistant to censorship. Fuel will adopt a Proof of Stake (PoS) model based on the Tendermint consensus to achieve this.
This would allow participants to validate transactions. This setup not only enhances the security and decentralization of the network. It also allows users to earn rewards for validating transactions, making them active participants in maintaining the network’s integrity.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
