What is Fusion? How does Time Lock work?
What is Fusion?
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Fusion is a blockchain using the Ticketed Proof-of-Stake (TPoS) consensus protocol. To stake on TPoS, validators buy tickets [tickets] with the project’s FSN tokens.
The Fusion network selects tickets at random. Their owners gain the right to sign the next block. Validators receive rewards: 2.5 FSN and the transaction fees in the block. FSN staking yields can be calculated on stakingrewards.com.
What is FSN?
FSN is Fusion’s native token. It is used to pay transaction fees, deploy smart contracts and buy staking tickets.
FSN’s supply is capped at 81,920,000 FSN. A staking ticket on Fusion costs 5,000 FSN.
What is Time Lock?
Time Lock (TL) is a technique that splits FSN into time-value parts: with a limited lifetime (TL FSN) and an unlimited one (FSN∞).
When splitting a token, the user sets the lifetime of the TL FSN. It is visible to other Fusion users and to smart contracts on the network.
The market value of TL FSN is lower than that of full FSN. It depends on the benefit that can be extracted during the token’s lifetime.
When the TL FSN lifetime ends, the tokens are burned. The corresponding FSN∞ convert into FSN.
Time Lock is akin to an interest-bearing loan or renting out property.
Example: Alice bought a book for $10. Bob borrowed it for a month and paid Alice $1. Alice still owns the book. However, Alice cannot read or transfer the book until Bob returns it.
Now imagine Alice bought FSN. She split the token into TL FSN with a 30-day lifetime and FSN∞, then sold the TL FSN to Bob. Alice cannot dispose of the FSN∞ until Bob’s TL FSN burn.
How to split FSN tokens?
To split tokens, you must send a transaction from a wallet that supports Time Lock. The user chooses a transaction type:
- null — send FSN;
- Timelock — split FSN and send TL FSN;
- forever — split FSN and send FSN∞.
What are the advantages of Time Lock?
Time Lock lets users invest or delegate tokens without risk. Users transfer TL FSN for a period after which the tokens will be burned. The FSN remain in the owner’s wallet.
Example: an investor put TL FSN into a DeFi project, but hackers broke the project’s smart contract and stole tokens. The investor will not lose funds. When the TL FSN burn, the investor regains access to FSN at full value.
Users can buy temporary tickets for staking for 5,000 TL FSN, and also send tokens to staking pools. TL FSN automatically return to their owners after the tokens’ lifetime ends.
Example: Alice split 10,000 FSN into two parts: TL FSN with a 30-day lifetime and FSN∞. Bob bought 10,000 TL FSN for 50 FSN and staked the tokens. After a month, Bob will earn 100 FSN, and Alice will regain access to 10,000 FSN. She can split and sell the tokens again.
What is FRC758?
FRC758 is a token standard with Time Lock support. With FRC758 you can tokenise assets such as BTC and USDT, then split them into time-value parts.
Tokenised assets with a limited lifetime are called TL tokens.
How can TL tokens be used?
The owner can send FRC758 tokens to another user or sell them on a decentralised exchange.
Other uses for TL tokens:
- crypto loans. The owner can issue them without intermediaries;
- liquidity pools. The investor contributes tokens without the risk of losing assets;
- renting out property or NFTs. The token serves as a temporary access key to the property.
Example: a car owner created and sold a TL token that grants access to the vehicle. The token holder can drive the car or transfer the TL token to another person. When the token burns, control of the car returns to the owner.
Where to buy FSN?
FSN is traded on Huobi, AnySwap, MXC, Hotbit, OKex, Bittrex, Bibox, UpBit, Citex and COINBIG.
TL FSN will be traded on Chainge Finance, AnySwap and other decentralised platforms.
Fusion recommends storing FSN in Whallet or My Fusion Wallet with Time Lock support:
- splitting FSN into TL FSN and FSN∞;
- merging matching TL FSN and FSN∞ into FSN;
- displaying FSN, TL FSN and FSN∞ balances in the wallet.
Where to learn more about FSN and FRC758?
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