The Theta protocol has two native tokens, the Theta Token (THETA) and also Theta Fuel (TFUEL). Theta Fuel is the operational token of the Theta protocol, as such, it powers on-chain operations, as well as the governance of the protocol.

Theta Fuel was created in 2017 as an extension to the Theta Ecosystem, which functions as a decentralized peer-to-peer network that aims to offer improved video and data delivery at lower costs than currently available.

What are Theta Fuel’s key features and how does it work?

As an extension to the entire Theta Ecosystem, Theta Fuel powers all on-chain transactions. This includes transactions for payments to relayers for sharing a video stream, for deploying and interacting with smart contracts. As well as paying for the fees that are associated with transacting NFTs and DeFi applications.

Additionally, it also serves as an incentive to ecosystem users to share their unused computing power and bandwidth resources to become network nodes for video streams and data delivery. This works by rewarding users that stake THETA, and run a node, with a proportional amount of the new TFUEL that is generated.

What is noteworthy about Theta Fuel?

Deploying two tokens on a network generally comes with benefits. As the second token of the Theta protocol, TFUEL comes with several advantages.

Firstly, having two native tokens means that utility and purpose can be separated. Where THETA’s purpose remains for staking and securing the network. TFUEL is used for microtransactions and all operations of the network. This is notable since the staking of a token results in a decreased circulating supply. However, due to the specific nature of the Theta network, where it is planned to facilitate millions of daily transactions, a high supply is desirable.
Secondly, having two tokens improves the overall security of the network. This is because staking and operations can be split between the two tokens. A token used for operations must be liquid to facilitate the numerous amount of transactions. However, if this same token is also used for staking, a potential threat could be introduced if an actor were to acquire a significant amount of the staking token.

Where can you buy Theta Fuel?

Theta Fuel (TFUEL) can be bought from the CEXs:

Binance;
Gate.io;
Crypto.com;
Bithumb;
Bitmart.