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Theta fuel

Theta Fuel (TFUEL)

Theta Fuel (TFUEL) is a utility token integral to the Theta Network, where it plays a vital role in facilitating various network operations. It serves as the main medium for executing transactions on the Theta blockchain, allowing for the exchange of value within the ecosystem. TFUEL is also essential for covering gas fees needed for deploying and interacting with smart contracts on the Theta platform.

TFUEL is used to cover various operational expenses, such as payments to relayers for sharing video streams and other transaction fees. It incentivizes participation in the network by rewarding activities like running Edge Nodes or Guardian Nodes, which are key components in maintaining the network's decentralized infrastructure.

Ticker TFUEL
Category Smart Contract Platform
Website https://www.thetatoken.org/
Twitter @Theta_Network
Reddit https://www.reddit.com/r/theta_network/

In addition, TFUEL enhances decentralized content delivery by using users' excess bandwidth to improve the quality and efficiency of video streaming on the Theta Network. It also contributes to network security by imposing transaction fees that help prevent spam. TFUEL holders can engage in governance processes by voting on important network decisions and proposals, thus influencing the network's development and management.

Tokenomics of Theta Fuel

Theta Fuel (TFUEL) possesses a unique tokenomics structure designed to support and incentivize the Theta Network:

Supply and inflation

  • Annual inflation: TFUEL has an annual inflation rate, which generates new tokens to reward participants and encourage resource sharing.
  • Burn mechanism: A portion of TFUEL is periodically burned to manage supply effectively.

Earning mechanisms

  • Staking rewards: Users can earn TFUEL by staking THETA tokens and operating Guardian Nodes, which help secure the network and validate transactions.
  • Edge Node rewards: Participants can also earn TFUEL by running Edge Nodes, contributing bandwidth and computing power for video relaying and caching.

Usage

  • Transaction fees: TFUEL is used to pay transaction fees on the Theta Network.
  • Smart contracts: It acts as the gas fee for deploying and executing smart contracts on the Theta blockchain.
  • Incentives: TFUEL encourages network participants to share resources and support the decentralized infrastructure.

Circulation

  • Distribution: TFUEL is distributed to users as a reward for their contributions to the network.
  • Market trading: TFUEL can be traded on various cryptocurrency exchanges, providing liquidity and enabling broader use both within and outside the Theta Network.

Consensus mechanism

The Theta Network employs a multi-level Byzantine Fault Tolerant (BFT) consensus mechanism to ensure security and reliability. Within this framework, TFUEL plays a role in transaction validation and security measures. It serves as an incentive for network participants to contribute to the consensus process by staking TFUEL and engaging in activities such as relaying video streams and operating nodes. These actions collectively help protect the network from potential threats.