What is the token economics of Theta Network?
The token economics of Theta Network is based on two tokens: Theta (THETA) and Theta Fuel (TFUEL).
THETA is the governance token of the network, while TFUEL is the utility token used to pay for transactions and services on the network. THETA is a deflationary asset, meaning that its supply decreases over time. This is done through a burning mechanism, where a portion of all TFUEL transaction fees are burned and removed from circulation.
This reduces the total supply of THETA tokens, increasing their scarcity and value over time. TFUEL is an inflationary asset, meaning that its supply increases over time. This is done through a minting mechanism, where new TFUEL tokens are created when users stake their THETA tokens in order to become validators on the network.
This increases the total supply of TFUEL tokens, making them more accessible to users who need them for transactions and services on the network. The token economics of Theta Network are designed to incentivize users to participate in staking and validating activities on the network. By doing so, they can earn rewards in both THETA and TFUEL tokens, which can then be used for transactions or services on the network or sold for other cryptocurrencies or fiat currencies.
