fusotao

The Fusotao Protocol is a verification protocol for an orderbook-based matching system,

using paradigm of "execute off-chain, verify on-chain". Powered by the decentralized

infrastructure of Fuotao, trust-free orderbook-based matching systems with zero-cost

gas and low latency can be built. Through the method of off-chain matching, the process

of order submission, order matching, certification generation and other processes runs

on a centralized off-chain server, which enables traders to obtain the same fast and userfriendly trading experience as CEXs. Through the method of on-chain verification, only

when the transactions under the chain pass the verification on the chain, will the user's

assets on the chain be changed, thereby ensuring the security of the user's assets.

To achieve the above-mentioned secure, fast, decentralized, and scalable Fuotao

protocol, a complete set of Token economic incentive mechanism is needed to enable

all participants in the ecosystem to jointly maintain the operation of the Fusatao system.

For one thing, the proportion of tokens and unlocking cycle need to be appropriately

allocated to give full play to the initiative of developers, investors, and community

participants, enable the Fusotao Protocol to achieve long-term prosperity; For another,

incentives need to be given to block packers, transaction certification service providers,

transaction participants and community governance to achieve sufficient liquidity,

security, and stability of on-chain financial products.

Like the vast majority of blockchains, the Fusotao Protocol also has its own native utility

token-aptly named 'TAO', which is the most important factor that motivates the properly

function of the Fusotao Protocol. It is also the proof of community governance,

development, transaction verification, and repurchase.

The following section will describe the economic model of TAO in detail.