The Fuse Ember Roadmap: Introducing stFUSE

Today marks a pivotal moment for the Fuse Network as we announce the upcoming launch of Fuse Ember, a Layer 2 solution designed to redefine business payments and scale decentralized finance. Scheduled for early 2025, Fuse Ember introduces a new era of speed, scalability, and privacy by leveraging zkEVM technology. This major upgrade will unfold in stages with various new features and functionalities, which we will cover in a series of posts.

Breaking The Changes Down

Week 1 (covered in this post)- Staking & Governance: In today’s article, we’ll cover the new staking model on Fuse Ember, introducing stFUSE, the native revenue-sharing token that allows liquid staking, auto-compounding rewards, and governance participation. 

Week 2 (to be covered next week) – Fuse 2.0 Tokenomics: The second article will examine Fuse Ember’s transition to a deflationary token model and the reasons for moving away from the current inflationary model of the Fuse network.

Week 3 (to be covered in the beginning of November) – Node Sale and Mainnet Launch: The upcoming Fuse Ember node sale will open opportunities for new and existing participants to contribute to the network’s growth while earning additional rewards we will cover in the last article of the series.

Introducing stFuse: Upgrading staking on Fuse

The new stFUSE native revenue-sharing token will be the backbone of the staking model for Fuse Ember and replace the old SFUSE on Voltage. This marks a shift towards a more sustainable and rewarding staking experience for stakers and projects on Fuse. While the old inflationary model helped secure the network and drive early adoption, it relied heavily on token inflation, which had a negative impact on the value of FUSE and made it less appealing for long-term holders.

Our focus with the new staking model is on promoting the aggregation of actual revenue from Real-World Assets (RWAs) and Liquid Staking Tokens (LSTs) deployed on the network. Enabling stakers to earn yield from actual network activity rather than relying on inflationary incentives. Participants will benefit from a share in revenue generated by node sales, sequencer fees, and yield from RWAs and LSTs.

Additionally, by adding a liquid staking functionality, FUSE stakers will see their rewards automatically compound without manual intervention, maximizing returns while keeping assets flexible for other DeFi activities. The staking model becomes more modular, allowing users to engage at various levels of commitment while still enjoying profitability and security.

The revenue-sharing component of the new staking model will allow FUSE stakers to receive a portion of the fees from the projects they support, aligning incentives between network growth and individual profits. We will also see governance evolve through the application of a delegative democracy, where participants can compete for voting power, ensuring a stable and participatory system on Fuse Ember.

We have developed the new staking model for Fuse Ember to integrate seamlessly with DeFi, eliminating the need for complex bridges or additional steps. This frictionless overlay makes it easier for both developers and users to participate in staking and DeFi activities. With the shift to this modular, deflationary staking model, Fuse Ember is setting a new standard for network sustainability, driving adoption and participation while preserving value for its users.r network sustainability, driving adoption and participation while preserving value for its users.

Looking Ahead

Fuse Ember is an important milestone of the evolution of the Fuse ecosystem and we invite the community to share their thoughts and feedback on this initiative. We will share more details as the voting process progresses as we build the next chapter of web3 payments on Fuse together.