TLDR:
- While the Fuel V2 token has launched, a significant percentage of FUEL V1 tokens remain unmigrated
- These unmigrated tokens represent a large portion of the total supply and hinder full network participation
- The intention is to incentivize the remaining V1 token holders to migrate to V2 by extending the migration window to 18th August 2025
- V1 holders who migrate after this date will commence unlocking from 19th August 2025 instead of 19th December 2024
Abstract
This proposal seeks community feedback and signals intent regarding a proposed update to the Fuel Network’s token migration and subsequent unlocking schedule for remaining Fuel V1 token holders. The update aims to encourage complete migration to the Fuel V2 token and enhance network participation.
Community feedback is requested.
Background
Fuel Network successfully launched its FUEL V2 token, representing a significant upgrade from the original V1 token. V2 introduces critical functionalities such as securing the decentralised shared sequencer and provides economic incentives for network participants. The initial migration from V1 to V2 was set at a 1:100 ratio with a 24-month unlocking schedule starting December 19th.
However, as of 29th May 2025, 1,488,598,104.379622451 FUEL (approximately 14.89% of the total supply) remains unmigrated. Review the migration contract here.
Proposal
To address this issue and incentivize full migration, we propose the following:
- Extended Migration Window: An extended window for V1 token holders to migrate to V2 will be opened. This window will end on Aug 18th, 2025.
- Unlock Schedule Adjustment: If V1 token holders do not complete the migration by Aug 18th, 2025, their V2 unlocking schedule start date will be changed from December 19th, 2024 to Aug 19th, 2025. This change may be implemented by the Fuel shared decentralized sequencer validators.
Rationale
This proposal is designed to:
- Motivate remaining V1 holders to migrate to V2, thereby activating a significant portion of the token supply
- Foster a more active and engaged community by reducing the number of outstanding unmigrated tokens
- Ensure that all token holders are aligned with the current ecosystem and technical advancements of Fuel V2
Implementation
The implementation will require an upgrade to the Fuel shared decentralized sequencer to enforce the new unlocking schedule for those who do not migrate by the deadline. Clear communication will be distributed across all relevant channels, including announcements on social media, the official website, and community forums.
Next Steps
Fuel contributors will review community feedback and determine the appropriate next steps.