FUSD is designed as an appreciating stabletoken — a stable-value digital asset that aims to maintain a peg to USD while implementing a tokenomics mechanism that can increase its net worth over time through built-in liquidity and arbitrage dynamics. 

Unlike traditional stablecoins that simply track $1, FUSD uses a unique protocol: as transactions occur, the contract’s design helps inject value into its liquidity mechanism. This results in a stable value representation with the potential for upward pricing pressure over time. 

FUSD is not a centralized fiat-backed coin — its stability model relies on algorithmic mechanisms and market activity. It’s chosen as a reward token because of its stable pricing characteristics and broad accessibility, helping reward holders without exposing them to excessive volatility.