FUEL Describes Itself As

A modular execution layer for Ethereum, often described as a high-performance Layer-2 rollup that decouples transaction execution from the base layer’s consensus. The design goals of Fuel are to massively increase throughput and reduce costs for dApps, all while retaining the trustlessness and decentralization of Ethereum. It achieves this via a custom FuelVM and novel parallel execution model that together make Fuel one of the fastest execution environments in the Ethereum ecosystem.

Project Function

Features:

• Fuel Ignition (Fuel Chain): “Fuel Ignition” is the current live network instance of Fuel – essentially the high-performance rollup chain running on the FuelVM​. The network allows developers and users to deploy and use dApps with Fuel’s improved throughput.
• Parallel Transaction Execution: Fuel was built to solve the bottlenecks of single-threaded blockchain execution. It uses a UTXO-based transaction model and a sophisticated scheduler to execute multiple transactions concurrently across multiple CPU cores.
• FuelVM (Advanced Virtual Machine): The Fuel Virtual Machine is a new VM designed from scratch. FuelVM supports features like parallelizable gas metering, flexible transaction formats, and multiple native assets out-of-the-box.
• Sway Programming Language: To unlock the capabilities of FuelVM, the team created. Sway is designed with a syntax familiar to Rust developers and built-in tooling for blockchain development, a domain-specific smart contract language inspired by Rust​.
• Modular Architecture: This modular design means Fuel can function as a pure execution engine (a “rollup client”) that plugs into various consensus/data layers. In practice, the first deployment of Fuel works as an optimistic rollup that uses Ethereum for settlement and security (transactions are ultimately secured by Ethereum’s proofs).

Token Utility 

• Securing the Sequencer (Staking): Fuel employs a decentralized sequencer model (similar to a validator set for a rollup). FUEL tokens are used in a proof-of-stake system to secure the sequencer network that orders transactions for Fuel’s rollup​.
• Paying for Chain Resources: On the back end, FUEL will be used to pay for various chain services that keep the rollup running. This includes covering the costs of data availability, block ordering, and inclusion on the Fuel sequencing layer.
• Gas Abstraction & Fee Elimination: A novel feature of Fuel’s design is application-specific sequencing, whereby decentralized apps can stake/bond FUEL themselves to cover their users’ transaction fees.
• Network Governance and Utility: As Fuel matures, holding FUEL is expected to confer governance influence (for example, on protocol upgrades or parameter tuning related to the sequencer) – though current documentation focuses more on its technical utility.

About The Founders

• John Adler (Co-Founder) previously worked at ConsenSys as a research engineer, where he pioneered rollup designs and contributed to Plasma research​. John Adler is also a co-founder and the Chief Research Officer of Celestia (formerly LazyLedger), a project focused on modular blockchain architecture and data availability​. (X)
• Nick Dodson (Co-Founder & CEO) has been involved in Ethereum since its early days, building some of the first dApps on Ethereum and even participating in Ethereum’s initial crowdsale as a young developer. Prior to Fuel, Dodson worked at ConsenSys, where he gained experience in Ethereum’s core ecosystem and identified the need for better scaling solutions. (X)

Risks of FUEL

Like an investment in other crypto assets, there are some general risks to investing in FUEL. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in FUEL is subject to the following specific risks:

• FUEL operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with FUEL. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The FUEL community and Fuel Network founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of FUEL have no recourse to the FUEL community, Fuel Network founding team, or Uphold if FUEL declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing FUEL on the Uphold Platform, Uphold performed due diligence on FUEL and determined that FUEL is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of FUEL, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of FUEL.
• Any marketing materials put forward by the FUEL social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with FUEL, including any code defects, security breaches and other threats concerning FUEL and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with FUEL, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of FUEL.