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Staking

Unlike the old L1 Fuse Network, staking on the new L2 Fuse Ember network will have a fundamentally different profitability mechanism.

The Fuse team propose the creation of a native revenue share token on the Fuse Ember network, called stFUSE, which will distribute revenue from various activities across the network. This token will also enable liquid staking, allowing rewards to auto-compound, be (re)staked, and remain compatible with DeFi. In doing so, stFUSE introduces both a new governance model and a new revenue model to the Fuse ecosystem. Moving away from the legacy inflationary model, this proposal suggests a sustainable and secure approach, where rewards are tied to real network activity.

stFUSE token​​

stFUSE is a receipt token for locking Fuse. Locking for longer periods will give you more tokens, similar to vote escrow tokens. Locking intervals will range from 1 month to 2 years.

By holding stFUSE users taps into multiple revenue streams on the Fuse Ember network and can auto-compound their rewards.

stFUSE token can be used in DeFi and in future (re)staking activities

Voting Power Delegation​​

By locking Fuse tokens in stFUSE, users select a Data Availability (DA) node operator and delegate Voting Power to it. Only DA node operators can vote on changes to the network.

Revenue Streams​​

Holding stFUSE entitles users to a share of revenue generated from various network activities. Rewards are collected into a dedicated vault. stFUSE holders can claim their share of the accumulated rewards during regular intervals.

There are several sources for generating revenue that stakers can benefit from on Fuse Ember:

  • Node Sale revenue share: A share of the revenue received by Fuse Foundation during the Node Sale will be allocated to boost the staking reward on the first year after the mainnet launch.
  • Sequencer fees: stFUSE holders are getting 10% of sequencing fees. Sequencing fees are paid by the network users to get their transaction included in the L2. They are similar to the validation fees on the L1.
  • Liquid Staking, Re-Staking tokens and Real World Assets yield: On a completely new staking DApp, users can stake the most popular LST, LRT and RWA tokens directly on the Fuse Ember network without having to bridge funds to other networks. The team of the product will take care of finding the best APYs on the market. For using this service, the Fuse team takes a small commission from the user's staking yield and share 10% of this revenue with stFUSE stakers.
  • Fuse Foundation incentive: The Fuse Foundation allocates 20,000,000 FUSE to incentivize staking rewards over the first 2 years to guarantee a minimum APY of 9.79%, which is no less than the staking return on the L1 Fuse Network.