KEY TAKEAWAYS
- Fuse launches its Node Sale to support the transition to Layer 2 technology, leveraging Polygon CDK’s zkEVM.
- Significant tokenomics updates include a maximum supply cap of 400 million FUSE and a shift to a deflationary model.
- The migration to Layer 2 will begin in April, featuring a 1:1 Fuse token swap and integration with major DeFi protocols.
- Partnerships with Polygon and other key players aim to enhance network capabilities and introduce new features like private payments.
The Fuse Node Sale is officially live, marking a significant milestone in Fuse’s journey towards migrating to Layer 2 (L2) technology. This transition is powered by Polygon CDK’s zkEVM, with support from key partners such as QuickNode and Avail DA. The node sale aims to enhance governance, improve tokenomics, and support Fuse’s long-term growth.
The node sale is designed to establish a new governance structure ahead of the L2 migration, which is set to begin in April. It introduces changes to Fuse’s tokenomics to support long-term sustainability and incentivize active participation in the network. A total of 42 million Fuse tokens from the Fuse Foundation treasury have been allocated to provide yield for node operators over the next three years, ensuring consistent rewards while securing the network.
Key Tokenomics Updates: A New Chapter for Sustainable Growth
As part of the Fuse Ember Node Sale, significant changes to Fuse’s tokenomics have been introduced. These changes aim to create a more sustainable, deflationary, and growth-oriented economy. Over the past few months, Fuse re-evaluated its economic model to better serve long-term holders and the network’s future.
One of the major decisions includes setting a maximum supply cap of 400 million FUSE, ensuring predictability, scarcity, and long-term value for holders. Additionally, the inflation rate has been reduced from 5% to 0%, making Fuse a fully deflationary asset. To support network growth, 42 million FUSE tokens from the treasury will fund node operator rewards, reinforcing the deflationary model.
The closed presale concluded successfully with participation from major long-term holders, including Collider Ventures, Tectona, Spark, Aleph, TRGC, and Blockchain Founders Fund. Presale participants invested using FUSE tokens, effectively reducing the circulating supply and strengthening Fuse’s tokenomics as the network transitions to the new L2.
Looking Ahead: Migration and Expansion Plans
In April, the migration to L2 will commence with a 1:1 Fuse token swap. The integration with major DeFi protocols and infrastructure partners, including Polygon, QuickNode, LayerZero, Avail, Stargate, Thirdweb, and The Graph, is planned. Additionally, a revenue-sharing model and business subscription services will be launched, along with the expansion of stablecoin payment solutions.
Fuse is also partnering with Polygon on ZK bridging with Agglayer and introducing private payments enabled by ZK technology. A new version of the AA stack will enable recurring payments and other features powered by Safe account. New SDKs for mobile native cross-platform AA are also in development, alongside the onboarding of new node operators to enhance global decentralization.
The Fuse Node Sale is live, and interested parties can participate by visiting here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Fuse Node Sale marks a pivotal step in Fuse’s strategic transition to Layer 2 technology, leveraging Polygon’s zkEVM to enhance network scalability and governance.
Recent industry reports indicate a growing trend in Layer 2 solutions addressing scalability and interoperability challenges in blockchain networks. This aligns with Fuse’s strategic move to migrate to Layer 2, which aims to improve transaction speeds and reduce costs, thereby enhancing user experience and network efficiency.
As per insights from a Cointelegraph report, deflationary tokenomics models, like Fuse’s, are seen as beneficial for increasing token value through scarcity. This supports Fuse’s initiative to establish a sustainable and growth-oriented economic model by capping the supply and reducing inflation, which could potentially increase the token’s value and stability.
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