Introducing $FUEL—the native token of the Fuel network.
The FUEL token is central to our mission to build a more fair and verifiable internet.
FUEL secures Fuel's decentralized sequencer and eliminates gas fees for users by introducing a novel economic incentive structure based on Application Specific Sequencing.
FUEL will transform the Ignition ecosystem by enabling web2-like, fee-less experiences for users, making blockchain technology accessible to the masses. Fuel Ignition is the fastest (>600 TPS) and least expensive (<$0.0002 min per transaction) Optimistic rollup on Ethereum.
Fuel would be nothing without its community. With the introduction of FUEL, we aim to level the playing field and offer fair access to both existing and new members of our growing ecosystem.
Our launch date target will be in the next two weeks.
20% of FUEL’s total initial supply will go to our community. We’re grateful to our long-standing friends, builders and users who have been with us since the beginning. FUEL will be released to the community based on various eligibility criteria, including participation in the Fuel Points Program and incentivized testnet. In total, over 51% of FUEL will be allocated to the community, ecosystem, and R&D.
The Fuel Points Program is still running, join Phase 2*
While our community forms the backbone of Fuel, we’re eager to welcome newcomers into our ecosystem. As a result, alongside our ongoing Phase 2 Points Program, we plan to launch a community expansion effort in collaboration with Legion, Impossible Finance, and Bitget before launch.
Sign up to your favorite platforms* over the next 7 days:
Details about the community expansion and future incentives will be shared this week.
*Not available to residents of the US, UK, or any countries or regions that are the subject of comprehensive sanctions
Overview of FUEL
$FUEL will secure the Fuel sequencing network, pay for chain resources and eliminate transaction fees for users while creating new markets for L2 applications.
1. Securing the Network
The rollup landscape today is dominated by centralized sequencing solutions, raising concerns about censorship resistance, fairness, and liveness.
Fuel is taking steps to address these challenges. Initially, Fuel will decentralize a network of proposers, then decentralize building, and then will aim to increase the total number of proposers and builders.
The Fuel sequencer employs proof-of-stake (PoS) based on the Tendermint consensus, enabling a decentralized staking network. Users can actively participate in securing the network by delegating their FUEL to sequencer proposers in exchange for a share of staking rewards.
Our vision is to fully decentralize sequencing, which is essential for improving fault tolerance, liveness and censorship resistance. While centralized solutions dominate the space today, Fuel is committed to evolving toward a shared, permissionless network for its rollups.
Validator participation and staking will commence with Fuel Genesis, with detailed information on permissionless staking and running a validator available at a later date.
2. Paying for Chain Resources
FUEL will be used to pay for sequencer resources such as data availability, ordering and inclusion of blocks for rollups on the Fuel sequencer. FUEL will also be used for sequencer network fees, which play an essential role in decentralizing L2s built on Fuel as well as ensuring an open and decentralized sequencing network.
Fuel Ignition will continue to accept gas fees in ETH.
3. Application Specific Sequencing & Eliminating Fees
FUEL gives dApps greater influence on the inclusion and sequencing of transactions, while avoiding the complexities and limitations of traditional blockchain architectures. Stakers can bond their FUEL tokens to a specific application and earn rewards from those applications in exchange for locking their tokens. This allows transactions to be free for the user and executed according to application specific order. The result is a novel market for L2 chain resources that engages stakers to enable best in class user experiences (i.e. staking resources will receive tokens from applications, and enable free user transactions).
Note: More details about these activities, including instructions on how to delegate and stake will be provided soon.
FUEL Supply
$FUEL is an Ethereum Mainnet ERC-20, but will also be available on L2. It will have a total initial supply of 10 billion. The total outstanding supply of FUEL tokens is split across:
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Community - used for incentives, programs, campaigns and activations for the Fuel community, unassigned tokens can be used to help establish the sequencing network. Staking rewards will only be used for community efforts.
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Ecosystem and R&D - for ecosystem development and Fuel technology R&D, unassigned tokens can be used to help establish the sequencing network. Any staking rewards will only be used for ecosystem development efforts and to enable L2 level incentives.
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Ecosystem and R&D 24 - for ecosystem development and Fuel technology R&D. These locked tokens can be staked, unassigned tokens can be used to help establish the sequencing network, during the 24-month block-by-block linear release. Any staking rewards will only be used for ecosystem development efforts and to enable L2 level incentives.
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Contributors 48 - core project contributors subject to a 48-month block-by-block linear release of tokens.
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Contributors 24 - includes past and present Fuel contributors, subject to a 24-month block-by-block linear release of tokens.
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Purchasers - token purchasers from 2020 to 2022, subject to a 24-month block-by-block linear release.
FUEL Release Schedule
Note: Team and Purchasers can't stake locked tokens.
Fuel V1 Upgrade
As a part of earlier efforts to decentralize the Fuel V1 sequencer, an ERC-20 staking token was both privately granted and sold to a select group of Fuel contributors and purchasers which makes up the entirety of the Purchasers, Contributors 24 and Contributors 48 categories specified above. This token will be upgradable to the FUEL token with a programmatic, minimum 24-month, linear block-by-block release starting at the token launch date, which is enforced after being upgraded.
Progressive Decentralization
We outline three key phases for advancing the decentralization of the network.
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Phase 0, now completed, established 12 sequencer proposers and introduced initial security measures.
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Phase 1 focuses on decentralized block building and enhanced security.
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Phase 2 aims to significantly scale the network with more proposers, and advanced security features.
This is just the start of our journey, and we're excited to share our plans for advancing the network.
Community & Resources
We’re grateful to the Fuel community which has grown to nearly 850,000+ members. There are currently over 50 ecosystem dApps deployed on Ignition, including Mira, Griffy and Swaylend. Our global community spans Turkey, Latin America, North America, Africa, and Asia.
To dive deeper into Fuel’s philosophy and architecture, as well as what sets us apart from other blockchain solutions, check out the Fuel Book. Check out our documentation for detailed instructions on how to get started in the Fuel ecosystem.