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Fuel Network (FUEL)

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Fuel Network (FUEL) is a modular execution layer enabling high-throughput, low-fee, and scalable decentralized applications.

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FUEL
$0.0492623.3%

Introduction

Fuel Network (FUEL) is a modular execution layer designed to enhance blockchain scalability by delivering high security, flexible throughput, and an improved developer experience. Initially launched in late 2020 as the first optimistic rollup on Ethereum, Fuel has evolved to address the limitations of monolithic blockchain architectures.

 

What Is Fuel Network (FUEL)?

Fuel Network operates as an execution layer that decouples transaction execution from data availability and consensus, enabling greater flexibility and scalability. By utilizing a modular approach, Fuel enhances transaction processing speeds and reduces costs, making it a robust solution for decentralized applications (dApps) requiring high throughput.

 

Core Features of Fuel Network

  • Parallel Transaction Execution: Fuel employs a UTXO-based model with strict state access lists, allowing for parallel transaction execution. This design leverages multiple CPU threads and cores, significantly increasing computational capacity and transaction throughput compared to single-threaded blockchains.

  • Fuel Virtual Machine (FuelVM): The FuelVM is engineered to overcome inefficiencies in traditional blockchain virtual machines. It incorporates enhancements inspired by the Ethereum ecosystem, facilitating more efficient and flexible smart contract execution.

  • Developer Tooling with Sway and Forc: Fuel offers a domain-specific language called Sway, based on Rust, along with a supportive toolchain named Forc (Fuel Orchestrator). These tools provide developers with a streamlined and powerful environment for building dApps, integrating the strengths of existing smart contract languages with novel features from the Rust ecosystem.

Fuel Network’s Use Cases and Applications

Fuel Network’s ecosystem | Source: Fuel Network blog

 

Fuel's modular architecture and high-performance capabilities make it suitable for various applications, including:

 

  • Decentralized Exchanges (DEXs): Fuel's high throughput and low latency are ideal for DEXs requiring rapid transaction processing.

  • Gaming Platforms: The network's scalability supports complex in-game economies and real-time interactions.

  • NFT Marketplaces: Fuel facilitates efficient minting and trading of non-fungible tokens, enhancing user experience.

  • Cross-Chain Bridges: Its interoperability features enable seamless asset transfers between different blockchain networks.

Fuel Network (FUEL) Token Utility and Token Allocation

FUEL Token Utility

The FUEL token is the native utility token within the Fuel Network ecosystem, designed to support various functionalities and incentives. It plays a pivotal role in maintaining the network's operations, governance, and ecosystem growth. The primary use cases of the FUEL token include:

 

  1. Gas Fees: FUEL is used to pay for transaction fees on the Fuel Network. Its efficient architecture ensures low and predictable gas costs for executing transactions and deploying smart contracts.

  2. Staking and Security: Users can stake FUEL tokens to participate in network security and operations. Staking helps validate transactions and maintain network integrity while rewarding participants with additional tokens.

  3. Incentives for Developers and Users: FUEL tokens are used to incentivize developers building dApps and protocols on the Fuel Network. Users engaging with these dApps may also receive rewards in FUEL.

  4. Governance: FUEL token holders can participate in the decentralized governance of the network. They can propose and vote on protocol upgrades, feature enhancements, and resource allocation, ensuring a community-driven ecosystem.

  5. Liquidity and Trading: FUEL serves as a medium for trading and liquidity provision within the Fuel Network ecosystem. It can be used on DEXs for trading fractionalized assets and other tokens.

  6. Developer Tools and Grants: FUEL tokens fund grants and developer initiatives through the Fuel Ecosystem Fund, promoting innovation and the creation of new tools, applications, and integrations.

FUEL Token Allocation

Fuel Network token allocation | Source: Fuel Network blog

 

Fuel Network has a well-structured token allocation plan designed to support ecosystem development, incentivize participation, and ensure long-term sustainability. The total supply of 1,800,000,000 FUEL tokens is distributed as follows:

 

  1. Ecosystem Development (50%) – 900,000,000 Tokens

    • Supports developer grants, partnerships, incentives, and overall ecosystem growth initiatives.

  2. Community and Airdrops (20%) – 360,000,000 Tokens

    • Genesis Drop: 1 billion FUEL (10% of the total supply) allocated to over 200,000 unique addresses. Categories include:

      • Phase 1 Pre-Depositors: 287,000,000 FUEL

      • Testnet Users: 64,200,000 FUEL

      • NFT Connoisseurs: 125,000,000 FUEL

      • Fuel Bridgoors: 200,000,000 FUEL

      • Ecosystem Glass Eaters: 138,800,000 FUEL

      • Open Source Community: 175,000,000 FUEL

      • Fuelet Magisters: 10,000,000 FUEL

    • An additional 10% is reserved for future community incentives, campaigns, and activations.

  3. Node Operators (15%) – 270,000,000 Tokens

    • Rewards node operators for maintaining network infrastructure, security, and efficiency.

  4. Team and Advisors (10%) – 180,000,000 Tokens

    • Reserved for core team members and advisors, with a vesting schedule to align long-term incentives with network growth.

  5. Private and Strategic Sales (5%) – 90,000,000 Tokens

    • Funds early operational needs, strategic partnerships, and infrastructure development.

Vesting Schedule

To ensure market stability and incentivize long-term contributions, Fuel Network implements a structured vesting schedule:

 

  • Team and Advisors: 12-month lock-up period, then gradual release over 36 months.

  • Node Operators: Daily linear unlock over 36 months.

  • Community and Airdrops: 50% at Token Generation Event (TGE), with the remainder distributed over 6 months.

  • Ecosystem Development: Gradual monthly unlock over 48 months.

  • Private and Strategic Sales: 15% at TGE, followed by a 3-month lock-up and monthly unlock over 24 months.

Fuel Network Airdrop: Fuel Points Program

The Fuel Network has initiated the Fuel Points Program, a strategic airdrop campaign to reward early contributors and active participants within its ecosystem. This program is structured in multiple phases, each designed to incentivize specific actions that support the network's growth and prepare for its mainnet launch.

 

Phase 1: Pre-Deposit Program

In Phase 1, participants were encouraged to deposit qualifying tokens into Fuel's pre-deposit smart contract on Ethereum. This phase aimed to bootstrap liquidity and ensure a robust launch for the Fuel mainnet. Participants earned points based on the amount and duration of their deposits, with longer and larger deposits yielding more points. These points are anticipated to translate into future rewards, potentially including FUEL tokens upon mainnet launch.

 

Phase 2: Post-Mainnet Launch Activities

Following the mainnet launch, Phase 2 focuses on rewarding users for active engagement with the Fuel ecosystem. Participants can earn points through:

 

  • Activity Points: Gained by interacting with dApps on Fuel's mainnet, such as providing liquidity, lending, or other on-chain activities.

  • Gas Points: Accumulated by spending on gas fees within the Fuel network, with a specified number of points awarded per dollar spent.

  • Passive Points: Earned by maintaining asset deposits in the network, providing a steady accumulation of points over time.

When Is the $FUEL Genesis Drop? 

As part of its commitment to community engagement, Fuel Network announced the Genesis Drop, allocating 1 billion FUEL tokens (10% of the total supply) to over 200,000 unique addresses. This distribution recognizes various contributors, including early adopters, testnet users, NFT enthusiasts, and ecosystem developers. Eligible participants can claim their tokens between December 19, 2024, and January 19, 2025.

 

How to Participate in $FUEL Airdrop: Eligibility Criteria

To participate in the Fuel Points Program and potential future airdrops:

 

  1. Install the Fuel Wallet: Necessary for interacting with the Fuel network and its dApps.

  2. Bridge Assets: Transfer supported assets into the Fuel network using the official bridge to begin earning points.

  3. Engage with dApps: Actively use applications within the Fuel ecosystem to accumulate Activity and Gas Points.

  4. Maintain Deposits: Keep assets deposited in the network to earn Passive Points over time. 

Fuel Network (FUEL) Key Metrics and Roadmap

Key Metrics

Fuel Network’s architecture is designed for high throughput, low fees, and scalability while maintaining decentralization. Its modular execution layer ensures flexibility and efficiency, making it suitable for mass adoption on consumer hardware. Below are the key metrics highlighting Fuel's performance and capabilities:

 

  • Transactions Per Second (TPS):

  • Fees: Transaction fees as low as $0.0002 per transaction, making Fuel highly cost-effective for users and developers.

  • Total value locked (TVL): Over $17.9 million

  • Block Time: 1-second block time, ensuring near-instant transaction finality and rapid confirmation times.

  • Data Availability (DA) Security: Secured by Ethereum (EIP-4844), leveraging Ethereum's robust DA layer for enhanced security and reliability.

  • Stage-2 Security Status: Fuel V1, launched in 2020, was the first optimistic rollup on Ethereum mainnet and achieved Stage-2 security status, ensuring high levels of safety and decentralization.

Fuel Network Roadmap

 

Fuel Network’s roadmap focuses on enhancing scalability, usability, and ecosystem growth. The upcoming milestones and developments aim to solidify Fuel's position as a leading modular execution layer:

 

  1. Mainnet Launch (Q3 2024): Introduction of the Fuel Network mainnet with full-featured execution, enhanced scalability, and robust security mechanisms.

  2. Decentralized Sequencing: Plans to implement decentralized sequencing for increased fault tolerance, liveness, and resistance to censorship.

  3. Ecosystem Expansion: Continuous growth of partnerships, developer grants, and dApps building on the Fuel Network. Focus on verticals like gaming, DeFi, and NFT marketplaces.

  4. Consumer Hardware Compatibility: Ensuring Fuel remains efficient and decentralized by maintaining low hardware requirements, enabling mass adoption on consumer-grade devices.

  5. Technical Upgrades:

    • Enhancements in the Fuel Virtual Machine (FuelVM) for better performance.

    • Improved native account abstraction and native asset support for a seamless developer experience.

  6. Community Initiatives: Increased support for community-driven development, hackathons, and educational programs to foster innovation.

Conclusion

Fuel Network represents a significant advancement in blockchain scalability and developer experience. Its modular design, combined with innovative features like parallel transaction execution and the FuelVM, positions it as a leading solution for high-performance decentralized applications. As the network approaches its mainnet launch and continues to expand its ecosystem, Fuel is poised to play a pivotal role in the evolution of scalable blockchain technologies.

 

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