Fuel Labs Launches Native Token FUEL, Rewards Ecosystem Contributors with Genesis Drop

Fuel Labs has officially launched its native token, FUEL, marking a major milestone for the Fuel Network. This launch aims to bring a more fair and verifiable internet experience to users.

Fuel Labs, the team behind the Fuel Network, has announced the launch of its native token, FUEL, aiming to enhance the internet experience with Web2-like, fee-less interactions while pushing toward decentralization.

FUEL is now available to claim as part of the Fuel Genesis Drop, which allocates 1 billion FUEL tokens (10% of the total supply) to over 200,000 eligible participants. These tokens can be claimed through the Fuel Ignition platform on the official claims page, rewarding contributions made across the Fuel ecosystem.

The Genesis Drop claims period runs from December 19, 2024, to January 19, 2025.

Moreover, Fuel has introduced staking and delegation for FUEL tokens on both Fuel Ignition and Ethereum networks. This allows users to participate in Fuel's decentralized sequencer network by staking or delegating tokens to trusted validators.

The aim is to decentralize sequencing, improving fault tolerance, liveness, and censorship resistance for the platform. Currently, 13 validators support the network, but Fuel plans to expand this set to a fully permissionless structure in the future.

Staking is now available with an annual inflation rate of 3%. Participants can choose to stake on Ethereum for higher security guarantees or on Fuel Ignition for a more user-friendly, low-fee experience.

The unstaking mechanics differ between the two platforms, with Ethereum having a 2-week unbonding period and Ignition allowing tokens to be unstaked at any time after a 1-week waiting period.

Additionally, the transition from the earlier Fuel V1 token to the new FUEL token has been simplified. Fuel V1 holders can upgrade their tokens at a 1:100 ratio, giving them access to the new token.

Fuel is building a decentralized future for Ethereum-based rollups, and this token launch is a crucial step toward that goal.