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samtaggart
2023-12-06 18:04:13 +03:00
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---
id: farming_pools
title: "Unveiling Farming Pools"
image_caption: Farming Pools
description: Farming Pools mark a significant step towards ensuring reliability, fairness, and robust governance within our ecosystem.
date: 2023-12-05
taxonomies:
people: [sam_taggart]
tags: [threefold_grid, farming]
categories: [foundation]
extra:
imgPath: farming_pools.png
---
With version 4.0 upcoming, and a move towards commercialization, we are embracing several new strategies to ensure more reliability and trust. Farming Pools are an innovative mechanism designed to foster better governance and equitable participation within our network.
<br>
Farming Pools represent a shift in our ecosystem. Every version 4.0 Farmer will need to join a Farming Pool, marking a collective commitment to uphold stringent service level agreements. These agreements will encompass crucial aspects like uptime, response time, and available bandwidth. Furthermore, adherence to a service agreement and specific terms and conditions is paramount, ensuring a standardized quality of service across the network.
<br>
Empowering our Farmers, the introduction of Farming Pools grants them the authority to set pricing for their offered services. Whether it's storage, network capabilities, or computing capacity, Farmers hold the reins in determining the value they provide.
<br>
In addition, Farmers will now have the option to stake tokens on their farms. This strategic staking mechanism introduces an additional layer of accountability — a 'slashing' mechanism. In the event of failing to meet the agreed-upon service level commitments, a proportion of their stake may be forfeited. This not only incentivizes reliability but also fortifies the overall quality and dependability of our network.
<br>
Central to the Farming Pools is a regulated approach. It provides a centralized platform facilitating staking, token holding, as well as regulated buying and selling of tokens. This centralized stance ensures oversight and governance while maintaining the decentralized ethos that defines our network.
<br>
Farming Pools, therefore, mark a significant step towards ensuring reliability, fairness, and robust governance within our ecosystem. By uniting Farmers under stringent agreements, empowering them to set prices, and introducing accountability through token staking, we fortify the foundation of a network built upon trust, integrity, and collective responsibility.
<br>
*Learn more about [our next phase](/next).*

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#### ThreeFold Cooperative
We will use a cooperative as our decentralization mechanism. These are well proven governance structures. Every farmer and buyer of IT Capacity from the TF Grid will be part of this cooperative.
We will use a cooperative as our decentralization mechanism. These are well proven governance structures. Every farmer and buyer of IT Capacity from the TF Grid will be part of this cooperative. Read [more](/blog/threefold_cooperative).
<br>
#### Farming Pools
A 100% owned subsidiary of the Cooperative in a chosen jurisdiction (probably BVI) will allow the creation of Farming Pools and allow people to buy/sell their TFT in controlled ways in line with governance, as will be defined per Farming Pool.
A 100% owned subsidiary of the Cooperative in a chosen jurisdiction (probably BVI) will allow the creation of Farming Pools and allow people to buy/sell their TFT in controlled ways in line with governance, as will be defined per Farming Pool. Read [more](/blog/farming_pools).
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#### What is a cooperative and why are we moving in that direction?
A [cooperative](https://www.ica.coop/en/cooperatives/what-is-a-cooperative) is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. In the next phase of ThreeFold it is crucial we have governance done well and in a way which is widely accepted. Cooperatives present a well-proven governance structure.
A [cooperative](https://www.ica.coop/en/cooperatives/what-is-a-cooperative) is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. In the next phase of ThreeFold it is crucial we have governance done well and in a way which is widely accepted. Cooperatives present a well-proven governance structure. Read [more](/blog/threefold_cooperative).
<br>
#### Can you explain more about farming pools?
Farming pools allow farmers to group together and adhere to minimum service level agreements in order to provide reliability and trustworthiness for people using the capacity. Every 4.0 Farmer will be required to join a farming pool. Farming pools will have the opportunity to set the pricing for services they provide, and the option to stake on their farms. The pools will also prvide a regulated and centralized approach to staking, holding, selling, and buying of TFT. All in all, this creates a more simple and trustworthy experience for customers.
Farming pools allow farmers to group together and adhere to minimum service level agreements in order to provide reliability and trustworthiness for people using the capacity. Every 4.0 Farmer will be required to join a farming pool. Farming pools will have the opportunity to set the pricing for services they provide, and the option to stake on their farms. The pools will also prvide a regulated and centralized approach to staking, holding, selling, and buying of TFT. All in all, this creates a more simple and trustworthy experience for customers. Read [more](/blog/farming_pools).
<br>