The Benefits of Participating in the Fusotao Protocol — Everything you need to know!

Fusotao Protocol is a completely decentralized and non-licensed community protocol. Therefore, most of the $TAO tokens will be generated by community mining and distributed to community members who maintain the operation of the Fusotao Protocol and carry out transactions.

63% of $TAO tokens will be allocated to community members participating in the Protocol, that is, community traders, application chain validators, and $TAO staking participants. They are the main contributors to ensuring the stable operation of the Fusotao Protocol and realizing the zero-cost, high-speed and safe transactions. The three participants will get $TAO rewards through PoT, PoV, and PoS.

🌟 Trading rewards: Proof-of-Trading (PoT)

Fusotao protocol is a set of matching and verification protocols. “execute off-chain, verify on-chain” paradigm is the core of the Fusotao Protocol. Through on-chain authorization and off-chain order-book matching, users can complete transactions and obtain transaction proof without assets custody. The whole process is based on automated trust rather than human trust.

Trading itself is the core of the whole system. Fusotao protocol uses the Proof-of-Trading to motivate transactions to obtain TAO rewards. When users trade on DEXs backed by the Fusotao Protocol, they will get TAO tokens according to the trading volume in one era(about 24hrs). 48 million TAO tokens, accounting for 48% of the total supply, are used for PoT rewards in 5 years. After the launch of the Fusotao mainnet, 26,301 TAO tokens will be distributed to traders every era as PoT rewards.

The detailed reward rules are as follows. Assuming that the total trading volume of all DEXes backed by Fusotao Protocol is equivalent to $10000 in one era, and the trading volume of a user is $50 in that era. This user can get

($50 / $10000) * 26,301 TAO = 131.5 TAO

as PoT reward in that era.

🌟 Validator Rewards: Proof-of-Validator (PoV)

Verification nodes of the Fusotao Protocol are provided by the Octopus Network (OCT). Community users can obtain TAO rewards by becoming the validators or staking OCT to validators as delegators in the octopus network and the validators will share 20% of the TAO rewards of the delegators staked OCT in the validators’ nodes. 7.5% of the total token will be allocated to the validators and delegators in the Octopus Network in 5 years. You can stake your OCT to earn TAO rewards here: https://mainnet.oct.network/appchains

🌟 $TAO Staking Rewards: Proof-of-Staking (PoS)

In order to incentive the long-term holders of TAO tokens, the Fusotao Protocol will also support TAO token staking after the mainnet is launched. Stacking participants and reward distribution are completed automatically through the protocol to avoid centralization risk. Staking reward, accounting for 7.5% of the total token supply, will be unlocked for 5 years, with an annual unlocking rate of 1.5%. So,4109 TAO will be allocated to the TAO staking participants.

Staking participants need to lock TAO to the staking protocol. The protocol will automatically calculate stacking rewards according to the locked proportion, and the users can claim staked tokens and rewards after the staking period. Users can not withdraw their staking token during each staking period.

For example, if a user’s effective lock-up amount is 10,000 TAO on some day, and the total lock-up amount is 1,000,000 TAO, the user is expected to receive

(10,000 TAO / 1,000,000 TAO) * 4109TAO = 41.09TAO for that day.

🌟 Claim as a Matcher

Fusotao is a completely permissionless network where any $TAO holder can stake a certain number of tokens to build a DEX on Fusotao and earn transaction fees. No need to maintain assets anymore, just prove any modifications that are made.

🌟 Staking for DEXes to Share Transaction Fees

Community users can directly share transaction fees through staking $TAO Tokens for the DEXes backed by Fusotao Protocol.

Suppose a DEX backed by Fusotao Protocol has a daily transaction fees income of $10 million. The total number of $TAO tokens staked for this DEX is 1 million $TAO, of which you staked 10,000 $TAO tokens for this DEX. Then you will share transaction fees on the day as follows:

$10,000,000 * (10,000 TAO / 1,000,000 TAO) = $100,000

$TAO is the native utility token of the Fusotao Protocol. It is a link that incentives developers and community members to participate in Fusotao ecosystem. 63% of $TAO tokens will be distributed to the community members. Community members can get $TAO rewards by participating in trading, community governance, verification nodes, and $TAO staking, or directly share transaction fees through staking tokens for the DEXes backed by Fusotao Protocol.

💫 About Fusotao Protocol

Fusotao Protocol is a verification protocol for order-book based matching systems, using the paradigm of “execute off-chain, verify on-chain”. Founders can build their own DEXs based on Fusotao. Communities can earn rewards by trading on the DEXs or directly staking tokens for the DEXs backed by Fusotao Protocol to share transaction fees.

🔴 You can reach Fusotao here:

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