In This Article
Cryptocurrency projects are changing how different industries work by using blockchain, crypto rewards, and decentralized systems. The Theta Network (THETA) is one such project that focuses on improving video streaming and content delivery. Instead of using big data centers like YouTube or Netflix, Theta lets everyday users share their internet and computing power to help stream videos. In return, users earn rewards in the form of Theta’s native tokens.
So, what is Theta Network exactly? In this Theta Network Review, we explain that it is a decentralized platform that runs on its own blockchain and is powered by two tokens. The THETA token is used for staking and governance, while TFUEL is used to pay for transactions and reward users who support the network. If you’re curious about Theta crypto or how to earn with Theta, this beginner-friendly guide will explain how the Theta network works, how the THETA tokens are used, and why this project is important for the future of streaming.
Theta Network Review: Summary
This article explains Theta Network easily so that everyone, from experts to beginners, can better understand the project. We will begin by going through some technical terms that you will come across frequently in this Theta Network explained article. Thereafter, we will discuss Theta Network in detail, covering its history, founders, core development team, and problems it is trying to solve.
The second half of the article will cover details about the tokenomics of the THETA and TFUEL tokens. By the end of the article, you will be well-versed in the token supply, use cases, economic model, and governance of Theta Network crypto tokens. We have also included a section with recommendations for the best Theta Network wallets.
Key Takeaways
- Theta is a permissionless blockchain where anyone can run a Validator Node without approval.
- Validator Nodes propose and vote on blocks, while Guardian Nodes seal them and check validator behavior.
- Theta Network comprises three main components: Theta Blockchain, Theta Edge Network, and Theta Metachain.
- Theta has expanded to decentralized cloud computing by creating the Theta Edge, a computing platform created to provide computing resources to AI development.
- The protocol uses a dual token structure, where THETA is used for staking and TFUEL is used for payment.
- Anyone with the required hardware can run a validator node by staking 200,000 THETA tokens.
- Currently, THETA and TFUEL token holders do not have any governance power.
Terms You Need to Know Before Understanding THETA
- Blockchain: A distributed and immutable ledger or database shared across numerous computer nodes that records transactions.
- Blocks: Blocks on a blockchain refer to a group of processed and finalized transactions. Blocks are linked to each other chronologically, forming a chain. Transactions are only considered final after they are included in a block.
- Layer one blockchain (L1): A base layer blockchain that hosts secondary networks and decentralized applications (dApps).
- Gas fee: Transaction fees users pay to process transactions on a cryptocurrency blockchain.
- Cloud: A server network that stores data, powers applications, and delivers content over the internet.
- Compute power: Processing power computers provide to perform calculations and execute instructions.
- Graphics processing units (GPUs): GPUs are specialized processor chips created for graphics rendering. They are also used to power blockchain gaming, creative production, and AI applications.
- Consensus mechanism: A system through which a decentralized set of network participants agrees on a data set to ensure authenticity.
- Smart contracts: Programs that can execute instructions autonomously when pre-determined conditions are met.
- Ethereum Virtual Machine (EVM): EVM is a virtual computer that executes smart contracts on the Ethereum blockchain.
What is Theta Network?
Theta Network is a layer one blockchain that aims to create a decentralized cloud for powering AI tools, media platforms, and streaming services. Instead of relying on centralized tech giants like Amazon Web Services or Google Cloud, Theta offers an open and community-powered system where anyone can contribute or access computing power. This helps reduce costs, improve speed, and give users more control over how content is delivered and how artificial intelligence applications are run.
The best part? It’s extremely easy to use. You don’t need complex software or hosting setups. With just a few clicks, anyone can upload a video and make it viewable on their site using Theta’s infrastructure. This is ideal for Web3 projects, independent creators, or platforms looking to cut costs and boost video delivery speed using blockchain technology.
Our Take on Theta Network Crypto
Theta Network is promising and aims to capitalize on the artificial intelligence (AI) wave. By expanding its offerings from decentralized content delivery to decentralized computing, Theta Network aims to capitalize on the growing demand for computing resources as AI technology advances and the world becomes increasingly dependent on it.
The project’s solutions have stayed true to the ethos of the cryptocurrency industry, such as decentralization and permissionlessness. Anyone can tap into the Theta Network to procure bandwidth to deliver content over the Internet and to acquire compute resources for video rendering and AI development. Theta’s collaboration and strategic partnerships with leading universities and global corporations, such as Google Cloud, Sony, and Yonsei University, are bullish.
Theta consists of three core components: Theta Blockchain, Theta Edge Network, and Theta Metachain. Each plays a specific role in making the system scalable, decentralized, and useful for real-world apps, from crypto platforms and NFT games to AI video rendering tools. Let’s take a closer look at how each part works.
- Theta Blockchain: Theta Blockchain is an EVM-compatible L1 blockchain on top of which developers deploy cryptocurrency tokens and decentralized applications such as decentralized exchanges (DEX), non-fungible tokens (NFT) marketplaces, and lending platforms.
- Theta Metachain: Theta Metachain is an interconnected network of blockchains that scales horizontally. This setup has one “main chain”, which is the Theta Blockchain, and an unlimited number of “sub-chains” that specialize in certain applications and use cases. Theta offers an easy-to-use software development kit (SDK) for developers to quickly launch a subchain and plug it into the main chain. The goal of Theta Metachain is to handle unlimited transactions with block finalization times as low as 1 to 2 seconds.
- Theta Edge Network: Theta Edge Network is a decentralized cloud computing platform created to provide computing resources to AI users in video, media, and entertainment. According to official documents, the Theta Edge Network consists of over 10,000 active global nodes that provide 80 petaFLOPS (a measure of computational performance) of “always available” GPU power. Theta Edge Network is permissionless, meaning that anyone can join and contribute computational resources by running a node. Anyone can tap into the network and procure computing resources from it without requiring approval from a central authority.
How Theta Subchains Work
- Theta Metachain supports customizable subchains tailored to different dApps or businesses.
- Each subchain operates independently but keeps blockchain interoperability via cross-chain messaging.
History of THETA Crypto
Theta Network launched in 2017. Between September and December 2017, the project conducted a private crypto presale, selling 30% of the total supply of its governance token, THETA, to raise $20 million. Theta Network was originally developed as a decentralized content delivery service where anyone could use to distribute their media content and where anyone with spare computing resources could provide bandwidth to cache and relay video streams.
Theta’s mainnet launch and releasing a second token called Theta Fuel (TFUEL) came in March 2019. By May 2020, Theta released its Mainnet 2.0 and introduced new protocol mechanisms such as special network validators called guardian nodes and a streaming platform called EdgeCast.
In June 2021, Theta released its Mainnet 3.0 upgrade, introducing TFUEL burning. By December 2022, the Mainnet 4.0 upgrade was released, and the Theta Metachain was introduced. Theta Network aims to launch its hybrid edge cloud computing platform, Theta EdgeCloud, in 2025.
About the Theta Network Team
Theta Labs Inc. is the core development team of the Theta Network. According to Crunchbase, Theta Labs is headquartered in Cupertino, California, United States, and was founded in 2017. The company has a headcount of 11 to 50 employees. The company has conducted six funding rounds for a total of $113 million. Notable strategic corporate investors in the company were Samsung NEXT, Sierra Ventures, GFR Fund, gumi Cryptos Capital, DHVC, and Sony Innovation Fund. Over the years, the company has developed strategic partnerships with Google, Sony Europe, Samsung, and American Idol, among others.
Who is the Founder of Theta Network Crypto Project?
Mitch Liu and Jieyi Long founded Theta Network. Liu is currently the chief executive of Theta Labs, and Long is the company’s chief technology officer.
According to Liu’s LinkedIn profile, he graduated from the Massachusetts Institute of Technology with a degree in computer science before pursuing an MBA at Stanford University. Liu co-founded several companies, such as Tapjoy, Gameview Studios, Midverse Studios, and Sliver VR Technologies, before creating Theta Labs Inc.
Long graduated from Peking University with a bachelor’s degree in microelectronics before completing a Ph.D. in computer engineering from Northwestern University. According to his profile, Long worked as a research assistant at Northwestern University and co-founded a mobile gaming studio called MadSkill Game Studio.
Vision of the THETA Blockchain Project
Theta Network was originally created to decentralize video content delivery services. At the time of its launch, Theta Network argued that video content was being delivered on the internet using outdated pay-per-storage and pay-per-bandwidth models that make content delivery and video streaming very expensive. The project also said that video content was being delivered in a centralized way, which hampered content distribution in uncovered geographical regions.
Thus, the Theta Network was created to allow anyone to provide spare computing resources and excess bandwidth to relay video streams and deliver content. The network was made to be decentralized so that anyone could upload their content for distribution. Native cryptocurrencies were created to reward streamers and content creators directly, thereby creating an incentive to distribute via the Theta Network.
Today, Theta Network has expanded to create a decentralized cloud computing platform that lets anyone procure computing resources needed for tasks such as AI development and video rendering. Anyone with the minimum hardware requirements can turn their computers into a computing node called “Edge Node,” which will be capable of executing various types of jobs, including AI and deep learning model training and inference, video transcoding, and relaying.
What Problems Does Theta Protocol Solve?
Theta Network looks to solve the following problems:
- Create an alternative to the outdated and centralized content delivery infrastructure.
- Give companies, video streamers, and creators a cheaper way to distribute content worldwide.
- Deliver content such as e-sports and live streaming to uncovered geographies.
- Reward content creators directly for uploading video streams with cryptocurrencies.
- Allow anyone to contribute spare resources to deliver content and to perform computational tasks for AI and video rendering.
THETA Tokenomics
Theta Network as a dual token model. Let’s talk about the two tokens one by one:
- Theta token (THETA): THETA is the staking token of the Theta Network. Validators use THETA to stake, making them eligible for block production and rewards.
- Theta Fuel (TFUEL): Theta Network calls TFUEL the platform’s “operational token.” TFUEL is used to pay relayers for video delivery and to interact with smart contracts. Relayers earn TFUEL for every video stream they relay to other users on the network. TFUEL is also rewarded to validators for block creation.
“THETA is used strictly for staking and securing the network, while TFUEL is used to power microtransactions and network operations. This is necessary because staking inherently decreases the circulating supply. Still, video relay transactions and smart contracts will require a highly liquid token that can facilitate millions of daily transactions,” said Theta Network, explaining its dual-token model.
THETA Token Supply
In the table below, you will find key tokenomics metrics such as max and circulating supply of THETA and TFUEL tokens:
Metric
THETA
TFUEL
Max supply
1 billion tokens
No limit
Circulating supply
1 billion tokens
6.96 billion tokens
Circulating supply as percentage of max supply
100%
Not applicable
Market cap
$745 million
$231 million
Crypto rank by market cap
87
178
THETA Coin Distribution & Allocation
Here is how the THETA token was distributed, according to data compiled by Binance Research:
Allocated to
Percentage of max supply
Number of THETA tokens
Private sale
30%
300 million tokens
Theta Team
7.49%
74.9 million tokens
Advisors
1.23%
12.3 million tokens
Partners
12.5%
125 million tokens
Network seeding
12.5%
125 million
Lab Reserves
36.28%
362.8 million tokens
THETA Utility & Use Cases
Let’s go through the THETA crypto utility and the use case of the TFUEL token:
THETA:
- Validator Staking: Validator nodes stake THETA tokens as a requirement. The minimum validator staking requirement is 200,000 THETA tokens. Validator nodes propose and produce new blocks in the Theta blockchain.
- Guardian staking: Guardian nodes must stake a minimum of 1,000 THETA tokens. Guardian Nodes check on malicious or non-functional Validator nodes.
- Sub-chain launch: Developers must submit a wrapped version of THETA called wTHETA as collateral to launch subchains.
TFUEL:
- Gas fee: Gas fees on the Theta blockchain and Theta Metachain are paid using TFUEL.
- Services: TFUEL is used to pay Edge Nodes for AI computation, video encoding/transcoding, and 3D rendering.
- Smart contracts: TFUEL is used for payments for deploying and interacting with smart contracts.
- Staking rewards: TFUEL is rewarded to validator nodes who propose, vote for, and finalize new blocks in the chain, and to guardian nodes.
Governance & Protocol Control
Governance on Theta Network is not as decentralized as it is in most cryptocurrency projects. Currently, THETA and TFUEL token holders do not have any governance power.
In 2022, Theta took its first steps towards decentralized governance when the project added community governance features, such as voting and improvement proposals, to a Theta blockchain-based NFT marketplace called ThetaDrop (TDROP). Theta said at the time:
“TDROP governance will represent an important next step in decentralizing the Theta protocol. In addition to giving the community power over TDROP, it will serve as the testbed for onchain governance of Theta blockchain itself, as the final step in decentralizing Theta blockchain,”
How Does Theta Network Work?
As we explained earlier, Theta has three main components: Theta Blockchain, Theta Metachain, and Theta Edge computing. Theta Blockchain has smart contract capabilities, enabling it to host decentralized applications such as the ThetaDrop NFT marketplace and cryptocurrencies such as THETA and TFUEL. Theta Metachain is a means to scale the Theta Blockchain horizontally by introducing purpose-specific secondary blockchains called sub-chains.
Meanwhile, Theta Edge computing is a cloud computing platform that provides computing resources for AI applications, machine learning inference, and video rendering in a decentralized and permissionless manner.
Architecture Behind the THETA Coin
Cryptocurrencies on the Theta Network blockchain are modeled after popular token standards, such as the ERC-20 and ERC-721 standards used on Ethereum.
Fungible tokens such as THETA and TFUEL use the TNT-20 token standard (similar to ERC-20). These tokens are created to be interchangeable with each other, meaning that a THETA token will always be the same as another THETA token. Similar to how a $10 bill is the same as another $10 bill. Meanwhile, NFTs on the Theta blockchain use the TNT-721 token standard.
THETA’s Blockchain Structure
Theta uses a unique multi-level BFT consensus mechanism to maintain and secure its blockchain. In this system, there are two key participants: validator nodes and guardian nodes.
Validator nodes are responsible for proposing, voting on and adding new blocks to the Theta blockchain. Anyone with the required hardware can run a validator node by staking 200,000 THETA tokens. A maximum of 31 validators can run at one time. Google Cloud, Binance, Blockchain Ventures, gumi and BridgeTower Capital are among Theta’s validator node operators.
Guardian nodes are responsible for checking on malicious and non-functional validator node activity. They act as a second layer of protection against potential malicious attackers and centralization. Guardian nodes were created to be run by members of the Theta community and require a minimum THETA stake of 1,000 tokens.
Scalability & Performance
Theta Network is designed to scale horizontally with the help of Theta Metachain.
The Theta Metachain concept refers to an interconnected network of blockchains created to enable the Theta Network to achieve “potentially unlimited” transaction throughput and subsecond block finalization time. The concept of Theta Metachain centers around creating an unlimited number of “subchains” around the main Theta blockchain.
To provide a unified interface for both the users and developers, the main chain and sub-chains use TFUEL as their gas fee token. Sub-chains also implement an in-built interchain messaging channel that allows crypto assets to flow freely across the chains. Each subchain executes transactions independently, allowing the entire network to scale infinitely.
Theta Network Compared to Other Chains
Feature
Theta Metachain
Cosmos
Polkadot
Scalability
Unlimited subchains with horizontal scaling
Unlimited zones, but complex topology
Limited (around 100 parachain slots only)
Finalization Time
1–2 seconds (or subsecond), deterministic
~6–7 seconds, deterministic
~60 seconds, deterministic
Security Model
Subchains secured via governance tokens on main chain; zk-rollup-ready
Each zone has its own validators; shared security under research
Relay chain secures all parachains (shared risk if relay chain is attacked)
Developer Experience
Easy, unified SDK with full EVM support across chains
Complex due to mixed environments and token requirements
Complexity from parachain slot auctions and relay-dependence
Interoperability
Built-in messaging (IMC); max 2 hops between chains
Inter-Blockchain Communication (IBC), but may require different gas tokens
Cross-chain messaging (XCMP), relies on relay chain
Gas Token Complexity
Single gas token (TFUEL) for all chains
Multiple gas tokens across zones/hubs
Native tokens vary; DOT secures relay chain
Theta Crypto’s Standout Features
- Blockchain and cryptocurrencies: Theta blockchain hosts cryptocurrencies, which are used to incentivize content creators to upload videos to the Theta Network’s content delivery system.
- Content delivery: Theta enables cost-effective and global content delivery through its decentralized network of relayers.
- Computing: Theta is developing a cloud computing platform to distribute computational resources in a decentralized manner.
- Permissionless: Theta Network is permissionless, meaning that anyone can access it to procure content delivery, computing, and bandwidth resources.
- Multi-level BFT consensus mechanism: Theta has specialized nodes called guardian nodes that keep validator nodes in check.
- Dual token system: Theta separates security and economic operations from each other through its dual token system.
Benefits and Drawbacks of THETA
Pros: Cons:
THETA and TFUEL Coin Analytics
In this section, we analyze THETA and TFUEL tokens to learn how they have fared over time. We will examine some key on-chain metrics and hear what experts have to say about the Theta Network project.
On-Chain Metrics
Here are interesting stats and key on-chain metrics, sourced from Theta Network’s official explorer, that Theta Network investors will find insightful:
Curious about how to earn rewards by staking crypto? Visit our guide. Former Messari analyst and decentralized physical infrastructure network (DePIN) expert Sami Kassab was bullish about the decentralized computing sector, saying that “the sheer amount of compute demand in the coming decade (from AI, IoT & the metaverse) will outstrip the supply of computing resources offered by centralized cloud providers.” This trend bodes well for Theta Blockchain Network as the project has expanded its offerings to decentralized computing solutions. Kassab added: “Historically, compute has always been a scare resource. This has been the case for GPUs and CPUs – and it makes sense because when excess computing capability is available, humans naturally want to perform more complicated calculations w/ it,” Here is what Professor Young-June Choi, a faculty member at Ajou University in South Korea who specializes in AI development, had to say about Theta’s EdgeCloud AI platform, which provides the university with high-performance GPU infrastructure. He mentioned that the platform is powerful, cost-effective, and works really well. But what stood out to him was how helpful and supportive the Theta team has been. He added that there are plans to grow the AI projects 10 times bigger in 2025 using Theta EdgeCloud. The THETA token is among the top 100 largest cryptocurrencies in the world by market cap. Its good tokenomics are characterized by its limited supply and zero inflation rate. According to CoinMarketCap, 100% of THETA’s supply was unlocked at the time of writing. However, there are concerns about the token’s high concentration among insiders and early investors, as over 51% of THETA’s supply was allocated to private sale participants, team members, advisors, and partners during its token generation event. Investors should always conduct their own research before investing in cryptocurrencies. Remember, cryptocurrencies are highly risky and volatile assets. Your decision to buy THETA and TFUEL tokens ultimately depends on your research, outlook for the project, risk tolerance, available capital, and financial goals. You can buy THETA and TFUEL tokens on the biggest crypto exchanges such as Binance and Bybit. If you are new to cryptocurrencies, we highly recommend using a centralized crypto exchange to buy your first tokens. These platforms are known for their user-friendly interface, secure environment, convenient fiat onramps, and easy fiat withdrawals. Intermediate and expert users can buy native THETA and TFUEL tokens on-chain using decentralized exchanges such as VoltSwap and ThetaSwap. The two DEXs mentioned are based on the Theta blockchain, giving users direct access to native THETA and TFUEL tokens. We recommend reading our detailed How to Buy THETA Coin: A Beginner’s Guide for a step-by-step explanation. Theta Network is built on top of a standalone blockchain. Since the Theta Network is not as popular as the likes of Ethereum, Solana, and BNB Chain, many crypto wallets for trading do not support the blockchain. Luckily for you, we have compiled a list of crypto wallets that support the Theta Network: Want full control over your tokens on mobile? If you want more options? Head to our list of the Top 10 Best Crypto Wallets of 2025. Theta Network has already disrupted the streaming industry by introducing its decentralized video delivery service. Now the project has its sights set on the GPU computing industry. The explosive growth of AI technology and its incessant hunger for computational resources set Theta Network on a path for growth. It remains to be seen whether corporate customers prefer Theta’s decentralized content delivery and computing solutions over existing centralized options for streaming services and AI operations. If you want to explore other crypto projects with strong use cases and long-term potential, check out our latest guide on the next 1000x crypto. See Also: THETA crypto is mainly used for staking by validators and nodes on the Theta Network. Yes, you must stake a minimum of 200,000 THETA tokens to be eligible to run a validator node on the Theta Network. Yes, Theta Network support NFTs. ThetaDrop is an NFT marketplace on the Theta blockchain. Yes, Theta Network is safe and is secure by a decentralized network of validators and community-run guardian nodes. You can buy THETA coins on centralized exchanges such as Binance and Bybit. Validators and guardian nodes on Theta Network earn TFUEL tokens for providing their services. There are 1 billion THETA tokens in circulation. Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days. Weekly Research Monthly readers Expert contributors Crypto Projects Reviewed
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