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Tokenomics

In early 2025, Fuse will launch a new network called Fuse Ember. This new network will operate in parallel with the current one. Fuse Ember will boast zero inflation and a maximum supply of 420 million stFUSE tokens from the launch of the mainnet. Existing FUSE tokens will gradually be moved over to ensure a smooth transition.

The reason behind the creation and deployment of Fuse Ember is to leverage Polygon’s zkEVM solution to enable scaling and privacy for business payments on Fuse’s new Layer-2 network. The integration of zero-knowledge (ZK) technology will enable new use cases, and promote the seamless integration and collaboration of diverse payment and financial services and applications. 

Key Benefits​

The migration to the Fuse Ember network introduces several advantages that enhance the overall ecosystem:

  • Network Security: The new stFUSE token strengthens the network by enabling liquid staking, allowing users to auto-compound rewards and contribute to the network’s resilience. By staking and delegating voting power to Data Availability (DA) node operators, stakers directly help secure the Fuse Ember network.
  • Sustainable Economy: Fuse Ember moves away from traditional inflationary models with a fixed supply of 420 million tokens, zero inflation, and a deflationary model. Rewards are tied to real network activity for long-term sustainability,, without affecting the token’s value.
  • Revenue Sharing: stFUSE holders share in the revenue generated by multiple network activities, including node sales and sequencer fees. This creates an ongoing, sustainable reward model where stakers continuously profit from network growth.
  • Frictionless Integration: stFUSE enables seamless participation in DeFi and staking activities without the need for complex bridges or extra steps. This ease of use lowers the entry barriers for both users and developers, promoting engagement.
  • Community Governance: stFUSE holders can lock tokens and participate in network governance by selecting DA node operators, contributing to decisions that impact Fuse Network’s future. By making users a part of the process, Fuse strives to promote a decentralized and community-driven governance model.