Ethereum rollup Fuel unveils native token to decentralize its chain
Quick Take
- Fuel developers have introduced the native token for their Layer 2 network, FUEL, intending to decentralize the chain.
- The FUEL token will play a crucial role in securing Fuel’s sequencer and creating an economic incentive structure that allows for the elimination of user transaction fees through “application-specific sequencing.”
- The launch of the token is anticipated within the next few weeks.
Layer 2 project Fuel has rolled out details regarding the native token of its optimistic rollup — aiming to decentralize its network's sequencer.
The FUEL token will have a 10 billion supply and be issued as an Ethereum mainnet ERC-20 token.
20% of this supply is allocated to its community. Here, early supporters of the Fuel ecosystem, including participants in the Fuel Points Program and incentivized testnet, will receive tokens at launch as an airdrop. The launch of the token is anticipated within the next few weeks.
The core developers say the native FUEL token will secure Fuel’s sequencer and introduce an economic incentive structure that eliminates user transaction fees.
This will be implemented through what is known as “application-specific sequencing,” which will let Fuel developers bond the tokens to their applications. In return, they will earn rewards while users experience gas-free transactions.
“Launching FUEL is a pivotal moment for Fuel, as it not only secures our network but also enables us to eliminate the fundamental pain point of transaction fees that so many blockchain ecosystems face,” said Nick Dodson, CEO and co-founder of Fuel Labs.
Fuel's Ignition network leverages its virtual machine architecture, the FuelVM, which offers performance tailored to scaling decentralized applications. It also uses a new Rust-based blockchain-oriented programming language called Sway and an asset-centric unspent transaction output model (UTXO-model) that can operate on inexpensive consumer-grade hardware.
Fuel Labs raised $80 million in a September 2022 funding round led by Blockchain Capital and Stratos Technologies.
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