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FUEL Token

Things are getting hot!

"FUEL" is our unreleased protocol token which was previously referred to as the "FROST" token.

The FUEL token is the governance and utility token of SUBFROST. It is designed to align the incentives of all participants in the network and to capture much of the value created by the SUBFROST protocol.

FUEL tokenomics are not yet ready for public release, but the following information provides insight into its utility.

Learn more about SUBFROST's Proof-of-Stake, here.

Governance​

FUEL token holders are the governors of the SUBFROST system. They are responsible for:

  • Managing the dxBTC treasury: FUEL holders vote on which yield-generating strategies to deploy the frBTC held in the dxBTC alkane.
  • Setting fees: FUEL holders can vote to adjust the fees for wrapping/unwrapping BTC to/from frBTC and for other services on the network.
  • Upgrading the protocol: FUEL holders can vote on proposals to upgrade the SUBFROST protocol and its various components.

This decentralized governance model ensures that the SUBFROST protocol is always aligned with the interests of its users and stakeholders.

Value Accrual​

The FUEL token is designed to accrue value from the economic activity on the SUBFROST protocol. The primary source of value accrual is from the fees generated at every wrap and unwrap of native BTC and frBTC, with several other future revenue streams.

Currently, a small fee of 0.1% is charged for wrap and unwrap operations.

A portion of these fees are used to buy back FUEL tokens from the open market and then burn them, creating a deflationary pressure on the token supply.

Additionally, there will be time-locked staking to incentivize liquidity. Holders can stake FUEL/frBTC LP in gauges on our app to boost dxBTC yield. This flywheel ensures positive pressure on FUEL price and market health.