• Theta Fuel (TFUEL) is the operational token (i.e., "gas") of the Theta protocol. It is used to complete transactions, such as deploying or interacting with smart contracts. If, for example, a relay node provides another party with a video stream it may earn TFUEL, which can subsequently be spent on the video platform for premium content, subscriptions, etc.

  • According to the Theta team, the average transaction fee could be as low as 10-6 TFUEL. The supply of TFUEL token is set at a protocol level and is initially targeted to have an annual inflation of 5%.

  • Next to relayers, Validator and Guardian nodes may also earn TFUEL as block rewards. The new TFUEL are subsequently distributed on a stake-weighted basis. For instance, if a node stakes 5MM out of a total 500MM staked THETA, it will earn 1% of the new TFUEL generated each block.