Layer 2 Project Fuel Unveils FUEL Token Details

Fuel, a Layer 2 project, has announced details about its native token for its optimistic rollup aimed at decentralizing the chain.

The FUEL token will have a total supply of 10 billion and will be distributed as an ERC-20 token on the Ethereum mainnet.

Community Allocation

20% of the total supply is dedicated to the community. Early supporters of the Fuel ecosystem, including participants in the Fuel Points Program and incentivized testnets, will receive tokens through an airdrop at launch.

Economic Incentives

Core developers explain that the native FUEL token will secure Fuel's sequencer and establish an economic incentive structure that removes user transaction fees. This will be achieved through application-specific sequencing, allowing Fuel developers to bond their tokens to applications. In return, developers will earn rewards while users enjoy 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.

Technical Innovations

Fuel's Ignition network utilizes its virtual machine architecture (FuelVM) to optimize performance for scaling decentralized applications. It also employs a new Rust-based programming language called Sway and a UTXO-model for managing assets, allowing it to run on low-cost consumer hardware.

Fuel Labs raised $80 million in a September 2022 funding round led by Blockchain Capital and Stratos Technologies.