Theta token is the native cryptocurrency of the Theta network, a decentralized video streaming and delivery blockchain that has both technical and economic use. The project is considered as one of the most exciting in the crypto space at the moment, and it is looking forward to releasing a second currency, the Theta Fuel.
Theta Mainnet and TFUEL Launch
Theta is on track to launch its mainnet on March 15th, 2019, and one of the most important protocols is the release of Theta Fuel (TFUEL), an operational token. TFUEL will be the second token in the Theta network and would work alongside the current Theta Token (THETA).
THETA is the governance token of the platform. The cryptocurrency is utilized to stake as a Validator or Guardian node, allowing users to contribute to the block production and overall governance of the Theta blockchain. It is currently an ERC20 token, but the token would be migrated to the Theta blockchain once the mainnet goes live.
Users of the network can earn
TFUEL Generation and Distribution
The first distribution of the TFUEL token would occur when the mainnet goes live on March 15th. For each THETA a user holds at the time of the mainnet, they will get 5 TFUEL tokens to contribute to the ecosystem. Those interested are required to follow the mainnet token swap process discussed by the development team.
Initially, five billion TFUEL tokens would be distributed. The supply will increase by 5% afterward, with the new supply rate to be determined at the blockchain level. The developers can adjust the supply rate according to the network consensus.
The development team revealed that network participants acting as validators and guardian nodes would earn some of the new TFUEL, and it would be equal to the number of THETA coins they are staking.
Advantages of Introducing a Second Platform Token
Launching the TFUEL token would have some benefits for the THETA network. Firstly, the introduction of a second token would enable the purpose and utility of each coin to be separated from the other. THETA would be used in staking and securing the blockchain while TFUEL would be utilized in powering transactions and other operations on the network.
Secondly, two tokens would be required to solve governance problems that spring from using one token for staking and operations. Using two coins on the network would make it harder for hackers to acquire a large amount of coins and control a significant stake on the blockchain.
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Hassan is a cryptocurrency and stock market writer and enthusiast. The financial world has become his primary interest, with movies and books being some of his favourite pastime activities. He is an investor in many blockchain projects including Bitcoin, Stellar Lumens, Cardano, VeChain, Gifto, and Cindicator. Hassan also writes for important outlets like Blokt.com