The launch of Theta 3.0 on April 2 could lead to further TFUEL supply reductions and price increases in the future.
Major Signals
- Theta Fuel is the second token on the Theta project's network.
- It is used to carry out tasks on the network like payments and communicating with smart contracts.
- The price of TFUEL useged by 775% over the past five weeks, from $0.026 on Feb. 1st to a new peak at $0.22 on March 10th.
Theta Fuel is the Theta Network's second token (gas token). Theta's key concept is a decentralized video content exchange driven by blockchain technology. Theta video is distributed via node computers linked to the blockchain, rather than conventional "information distribution networks" that rely on server centers.
In essence, it's a well-known peer-to-peer technology that's similar to the technology used by torrent trackers. Data is exchanged between peers in groups of up to ten users who are linked by their geographical location and Internet connection speed.
On the Theta blockchain, Theta Fuel is a native token. TFUEL is used to power undertakings on the block chain like paying relayers for sharing a video stream or deploying and communicating with smart contracts. Any video stream that relayers transmit to other users on the network earns them TFUEL.
As of March 10, the network had 57.96 percent of the 1 billion THETA available.
TFUEL's role in the ecosystem grows as more THETA is staked on the network and the token is used to engage with community members and make transactions.
Token holders will be able to stake TFUEL as another way to earn passive income and help protect the network following the launch of Theta 3.0 on April 21. The upgrade will also include a new burning mechanism, which functions as a sort of "network fee" for using the Theta edge. This could lead to further TFUEL supply reductions and price increases in the future.
Theta 3.0 mainnet launch and other upcoming protocol developments suggest that the rally for this dual token system may only be getting started.
The Theta ecosystem is nicely situated to attract new users and assist increased engagement as smart contract features become available, enabling NFT creation and decentralized finance applications.
