Fuel Unveils Native Token Launch

The Layer 2 project Fuel, touted as the “world’s fastest modular execution layer,” has announced the launch of its eponymous token as part of its network decentralization strategy.

Fuel Genesis is coming.

Introducing FUEL—the native token of the Fuel network.https://t.co/Z9KfE1MZWr pic.twitter.com/IauB1ofxEF

— Fuel (@fuel_network) December 10, 2024

The total supply of FUEL will be 10 billion ERC-20 standard tokens. Twenty percent of the coins are set to be distributed among the community, including testnet users and participants in the Fuel Points program.

According to key developers, the new asset will secure the Fuel sequencer and introduce an “economic incentive structure that eliminates transaction fees.”

This will be achieved through a special mechanism allowing Fuel developers to link tokens to their applications. In turn, they will receive rewards, and users will conduct operations without gas fees.

“The launch of FUEL is a pivotal moment for Fuel, as it not only secures our network but also addresses the fundamental issue of transaction fees faced by users of many blockchain ecosystems,” said Nick Dodson, CEO and co-founder of the project.

Fuel’s Ignition network employs the FuelVM virtual machine, which provides high performance suitable for scaling decentralized applications. It also uses the blockchain-oriented programming language Sway and a unique UTXO model. 

Developers claim the performance of the Ignition “optimistic” rollup exceeds 600 transactions per second, with fees under $0.0002.

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 (@fuel_network) December 10, 2024

In September 2022, Fuel raised $80 million in a funding round led by Blockchain Capital and Stratos Technologies. Investors valued the project at $1 billion. 

Previously, the startup introduced the Rollup OS solution, aimed at overcoming “critical limitations” inherent in current rollup architectures.