The Fusotao protocol is a verification protocol for an order book-based matching system that uses the “do off-chain, verify on-chain” model.

Introduce

Do you know? In today's society, the development of technology entails a series of changes in the economy. It can be a positive change or it can be a negative change. Of course, most of the positive changes are still going strong and dominating. Cryptocurrency is a new innovation on the internet that has been introduced with blockchain technology, the technology itself being the latest to introduce the concept of a distributed ledger where databases are shared across the network. public, where any copy of the data will be available to everyone participating in the network. Because of that strong development, followed by the strong volatility of the cryptocurrency market. Traditional traders started using crypto market options for their trading, but the decentralized ecosystem of cryptocurrencies makes it difficult to access data. This process is quite complicated and takes a long time making customers feel tired and frustrated. The core team behind the Fusotao protocol has noticed these issues and seen its negative impact on traders. Therefore, they conducted research and created an optimized solution for blockchain technology.

What Exactly Is Fusotao Protocol

Fusotao protocol is simply a second to none, secure, open and fast verification protocol for an order book matching system. An substrate-based application chain (appchain), Fusotao holds user assets and verifies matching transactions from off-chain exchange services. This open source protocol has equally integrated as an application chain on the framework to hold users assets and verify the matching transactions from offchain- exchange services, as a community driven platform , this protocol has also scaled using paradigm of execute off -chain, verify on-chain which was powered by the decentralized infrastructure of the fusotao ,trust free ordered - based matching system with zero cost gas and ofcourse low latency can be built. Through the application of off chain matching, the process of order submission , order matching , certificate generation , and other processes runs on a centralized server , which made possible for all platform userrs to enjoys thesame fast and user friendly trading experience as CEXs. Fusotao protocol has in place a stall plan to to implement & execute this by providing a user-friendly order-book-based DEX with zero-cost gas, low latency, and high security. Recognizing this potential, the core team of Fusotao Protocol had assembled a professional team of budding entrepreneurs and seasoned investors to create an all-encompassing blockchain based metaverse trading platform. Since crypto currency is designed for mainstream adoption, our platform will be a stop-shop for clients that intend to earn huge returns on investment Fusotao Protocol team has created a user-friendly system that incorporates both traditional markets and the blockchain based assets.

The Fusotao protocol consists of two core components:

A blockchain acts as a verifier and an off-chain matching system acts as a maxim. They have now built the blockchain on the substrate as a standalone blockchain, by partnering with the Octopus Network that can connect to NEAR and other substrate-based application chains. By trading on the Fusotao integrated trading platform, users do not need to transfer funds to the platform, instead, they only need to authorize funds. Once the authorization is complete, only the status is changed from “free” to “reserved” and the coins remain in your wallet. The coin's "reserve" status will not change until the off-chain language outputs proofs. The proverbial off-chain is a standard matching engine just like other CEX matching systems with an additional proofing engine.

Fusotao uses the “do off-chain, verify on-chain” model. We have a centralized off-chain service for order book storage and order matching. After an off-chain match, the protocol verifies it on-chain. That means the content is always under the user's control and always live on-chain. In addition, Fusotao will work with the Octopus Network to ensure the security of the blockchain and enable Fusotao's interoperability with NEAR or any IBC-enabled blockchain.

An Open, Reliable, and Fast Infrastructure for DEXs

Fusotao Protocol is an application chain with an off-chain matching engine that addresses the centralized bottleneck issues with existing relay protocols. Backed by Octopus Network, Fusotao leverages two core components to guarantee the order of transactions and the fairness of matching — a blockchain application chain and an off-chain matching system.

The blockchain application chain acts as the verifier, while the off-chain matching system acts as the matcher and prover. The application chain holds users’ assets and verifies matching transactions from the off-chain client which is used to execute orders and prove them through its novel Matching Verification Sub-protocol.

Leveraging a custom and optimized implementation of Sparse Merkle Tree, the orderbook is encoded into the Tree and its root hash is stored on-chain leaving the entire tree to matchers. Verifiers simply have to verify the order execution result by validating the merkle proof and the matching procedure with its root hash and origin command. Once verified, the accounts can be mutated and the updated root hash stored on-chain.

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.

• 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.

• $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 instance, 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.

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

It is a common practice for blockchain projects that network nodes with packaging rights receive token incentives, which ensures the correct operation of the network. Verification nodes of the Fusotao Protocol is provided by the Octopus Network (OCT). Community users can obtain TAO rewards by becoming the verification node or staking OCT to verification nodes in the octopus network.

Token Allocation – How to allocate tokens TAO

• Trading Rewards: 48%
• Development Team: 8%
• Fusotao Foundation: 6%
• Testnet Rewards: 1%
• Validator: 7.5%
• Investors: 12.5%
• Initial Liquidity: 4%
• Staking Rewards: 7.5%
• IDO / IEO: 2.5%
• Ecosystem Developers and Marketing: 3%

Token Release Schedule – TAO token payment schedule

• Trading Rewards (48%): paid within 5 years, paying 9.6% each year
• Development Team (8%): ​​1 year course, start paying from 2nd year, 2% per year
• Testnet Rewards (1%): paid immediately after IDO
• Fusotao Foundation (6%): paid quarterly for 5 years.
• Staking Rewards (7.5%): paid within 5 years, paying 1.5% each year
• Validator (7.5%): paid within 5 years, 1.5% each year
• Investors (12.5%): lock for 3 months, then pay 30%. The remaining 70% is paid quarterly within 1 year
• IDO / IEO (2.5%): TGE 100%

Here are the tokens unlocked over the years:

67% of TAO tokens will be unlocked within 3 years after the IDO and long-term incentives will be paid to the community for the next 2 years. The cumulative issuance curve of TAO tokens is as follows:

Fusotao Investors



Summary

The Fosutao Protocol dashboard can be accessed by anyone, making it a transparent open ecosystem. Users can learn more about the project through their links or social media.

For More Detailed Informations , Visit
Website: https://www.fusotao.org/
Twitter: https://twitter.com/FusotaoProtocol
Telegram: https://t.me/fusotao
Medium: https://medium.com/fusotao-protocol/
Authorship Detailed
User : Scubidu
Bitcoitalk Url :- https://bitcointalk.org/index.php?action=profile;u=2785636
Auth. Proof :- https://bitcointalk.org/index.php?topic=5405105.msg60506183#msg60506183