Theta is an open-source blockchain platform that solves the problems with the video streaming industry. TFUEL is one of the native tokens on this blockchain. TFUEL is a token that serves as the utility token in the data and video delivery.
As the name suggests, TFUEL acts as a gas token and is used to power all operations on the blockchain. It helps deploy and interact with smart contracts, pay relays for sharing a video stream, and you can use them as fees for transacting NFTs (Non-fungible tokens) and dApps (decentralized applications). TFUEL also attracts users to the ecosystem, which will lead to a more secure network.
why Theta Fuel?
Theta is mostly for decentralizing video streaming, edge computing, and data delivery and makes the deals more cost-efficient for industry participants. The two primary tokens on the platform power the internal economy.
Theta has three main appeals:
1- Viewers get better quality streaming
2- Content creators improve their income
3- Middlemen (video platforms) save money on building infrastructure and developing advertising, subscription revenues
Viewers have an incentive to watch the content, share resources, and earn a reward as TFUEL Holders get governance powers like many other PoS (proof of stake)-based blockchain networks. This open-source platform caters to video, data, computing and provides developers who want to launch decentralized applications such as DeFi (decentralized finance) and NFTs. This platform is an EMV-compatible smart contract network.
Theta Fuel history
Mitch Liu and Jieyi Long, the cofounders of the ecosystem (2017), are also the cofounders of Theta Fuel. Liu is the CEO, and Long is the CTO of the Theta Labs.
Liu is an experienced individual in the gaming, virtual reality, and video industries. Long has many years of experience in design automation, VR, gaming, and large-scale distributed systems. He has written multiple peer-reviewed academic papers.
The digital coin market predicts that TFUEL will be a
profitable investment in a year, and its price will double up. The launch of this token took place on March 15th, 2019. Users who owned Theta received 5 TFUEL for each Theta they had as a reward and to seed the ecosystem. So there were 5 billion TFUELs distributed when it came out, and now it will increase by 5% every year. You can see theta investors on Theta’s official website, including Samsung NEXT, Sony Innovation Fund, CAA Creative Artists Agency, and traditional Silicon Valley VCs.
Theta Fuel is one of the main tools for interaction on this blockchain. There are about 5.3 billion tokens currently in circulation, and every year the number of tokens grows to be used for staking rewards. You can stake your TFUEL, and to do so, you have to stake 1000 tokens to a Guardian Node or run your Guardian Node.
the difference between the Theta Token and Theta Fuel?
As mentioned before, there are two primary native tokens on the Theta blockchain. But how are they different?
The number of TFUEL tokens is not fixed, and it increases every year to be a reward to Stakers. However, the number of Theta tokens in circulation is 1 billion and will not increase.
THETA is the governance token of the protocol. Users use this token to stake as a Validator or Guardian node. Users can make an extra portion of Theta Fuel tokens by staking and running a node.
TFUEL is the operational token of the protocol. Theta Fuel powers all the operations on the blockchain. It is like the gas of the protocol.
Why did they need the second token? There are two reasons:
1-This allows for separated purposes for each token. Theta is only for staking and securing the network, and TFUEL is for powering operations and microtransactions. Why? Because staking decreases circulation supply, smart contracts and video relay transactions need a token to enable millions of daily transactions.
2-These two tokens solve governance issues arising from using the same token for operations and staking. The token for operations needs to be liquid. If the token for operations and staking remains the same, it will increase the risks to the network’s security.