TFUEL Burning and a transaction fee adjustment were introduced on Friday as part of Theta’s move towards Mainnet 3.0 at the end of the month.
Since the crash in May, there have been many days of uncertainty in the crypto market. All major cryptocurrencies have surged in the past 24 hours, and THETA has led the onslaught.
THETA has seen a significant price improvement since its May low of $3.71 and has risen 18% in the last 24 hours alone, leaving the price at $9.10 at the time of writing this article. Theta Fuel (TFUEL), the gas for the Theta blockchain, has also seen a positive price trend, rising by 9% over the same period.
Theta Network is a blockchain-powered network for decentralized video delivery that supports video platforms such as Theta.tv hosts. Viewers can earn TFUEL rewards for sharing excess bandwidth and resources.
The World Poker Tour (WPT) partnered with Theta back in April to sell non-fungible tokens (NFT) in real time through the ThetaDrop NFT platform. The buying pressure for THETA and TFUEL recently may be due to the anticipation of the starting tomorrow Peer-to-peer ThetaDrop NFT Marketplace.
And that’s not the only innovation in the theta ecosystem. The Mainnet 3.0 update is scheduled to be released at the end of the month. This development includes the introduction of a moderate increase in gas fees on the Theta protocol to better match the value to the transaction volume on the Theta blockchain.
However, the fees are still 90% to 95% lower than those on Ethereum, and the change is accompanied by the introduction of TFUEL burning. Network transaction fees, smart contract fees and at least 25% of each TFUEL payment to the network will be burned.
Although the network currently processes about 100,000 transactions per day, the launch of the ThetaDrop marketplace and other expansion plans could mean 600,000 transactions per day for NFT interactions with Theta smart contracts alone.
This would result in nearly 250 million TFUEL being burned annually, which would offset much of the TFUEL inflation each year. The update also introduces the staking of TFUEL, which could lead to a deflationary TFUEL model in the long run.
The transaction fee adjustment and TFUEL Burning have already been implemented as part of the v2.4.0 protocol update that went live on Friday with block 10,709,540.