- Transaction fees: Being the native currency on the Fuse Network blockchain, users must pay fees in FUSE to approve transactions.
- Validation: Token holders can stake FUSE to become a validator. The minimal staking requirement is 100K FUSE. While the network is continuously growing, currently, there are 60+ validators.
- Voting: Validators vote on protocol changes with their staked FUSE and with the tokens delegated to them by stakers. This means validators with higher amounts of Fuse staked can have a more significant vote on network upgrades and governance changes.
- Staking (for delegators): Any FUSE holder can choose one or more validators to delegate any amount they wish. They receive a share of the Fuse block rewards proportionate to the share of their stake in the total stake, minus the minimum 15% fee paid to the validator(s).
- Payments: As FUSE is the native currency on Fuse Network, sending it does not require interactions with smart contracts. Thus, FUSE transfers are potentially faster and less costly regarding transaction fees.
IMPORTANT: Merely possessing any amount of FUSE tokens does not grant holders any rights to participate in the governance of the Fuse Network platform or any revenue streams related to its real-world performance.
With each new block created every 5 seconds on Fuse Network, the validator who creates it and the delegators who staked with them receive the block rewards in newly issued FUSE tokens. This is designed to secure the network's consensus mechanism.
The reward amount per block is set so that the FUSE total supply increases by 5% yearly.
The main reason for choosing an inflationary model at the early development stage was to ensure certain predictability of the flow of revenue for network validators and delegators.
If they had to rely exclusively on transaction fees as the reward for staking FUSE and validating, it would be harder to predict their future returns, as transaction activity on the network can fluctuate.
The relative predictability of validator revenue is an essential assumption behind the blockchain consensus theory on which the Fuse consensus mechanism is based.
Having substantial block rewards also makes it possible to keep transaction fees on the network low, facilitating the adoption of Fuse.
As was mentioned in the Intro to Fuse section, the upcoming transition to Fuse V2 will also involve the implementation of new tokenomics for the FUSE token described in the Fuse V2 section.
FUSE on Other Chains
One way to ensure the growth of Fuse and its prospects is by enabling additional versions (wrappers) of FUSE on other chains.
Unlike FUSE on Fuse Network, those wrappers are ERC20 tokens created whenever someone locks a certain number of tokens on the Fuse and gets issued the same amount of wrapper tokens on the target blockchain. If a user withdraws the wrapper from the target blockchain, the tokens are burned, and the FUSE tokens on Fuse are unlocked.
Currently, wrapped versions of the FUSE token exist on Ethereum (mainnet), Binance Smart Chain, and the Arbitrum One layer-2 optimistic rollup chain for Ethereum. The latter is a wrapper of a wrapper powered by the Ethereum-Arbitrum bridge, and its withdrawals from Arbitrum are subject to the optimistic rollup rules.
FUSE on Ethereum
Token contract: https://etherscan.io/token/0x970b9bb2c0444f5e81e9d0efb84c8ccdcdcaf84d
FUSE on Polygon
Token contract: https://polygonscan.com/address/0xf915fdda4c882731c0456a4214548cd13a822886
FUSE on BNB Chain
Token contract: https://bscscan.com/address/0x5857c96dae9cf8511b08cb07f85753c472d36ea3
FUSE on Arbitrum One
Token contract: https://arbiscan.io/token/0xbdef0e9ef12e689f366fe494a7a7d0dad25d9286
Where to Buy?
FUSE is available on several centralized (CEX) and decentralized DEX exchanges.
Centralized exchanges: Gate.io, Huobi Global, MEXC Global, AscendEX, Bimart, and Bittrex Global.
DEXes: Uniswap V2 and V3 (Ethereum), PancakeSwap (Binance Smart Chain), Quickswap (Polygon), Voltage DEX (Fuse), Sushiswap (Fuse), 1inch (Ethereum), Loopring (Ethereum).
The best information about FUSE trading volumes and prices on various exchanges can be found on the FUSE token CoinMarketCap page.
Currently, the project team occasionally uses the FUSE token to power liquidity rewards (yield farming) programs to boost liquidity on DEXes and participation in the Fuse Lending Network.
The ongoing liquidity rewards programs on DEXes can be discovered here.
Other ways of getting FUSE
From time to time, the Fuse team uses FUSE to reward community members for various forms of participation and community engagement. Following Fuse's social channels is the best way to stay up-to-date about these opportunities.