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docs/node-economics/bids.md
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# Bidding on ThreeFold Grid Capacity: Ensuring Farmer Revenue
# Bidding
> Ensuring Farmer Revenue
The ThreeFold Grid's decentralized marketplace introduces a robust bidding system that allows not only ThreeFold itself but also other entities to bid on available compute, storage, and network capacity. This mechanism is crucial for farmers, as it provides a proactive way to secure revenue and optimize node utilization without solely relying on direct customer reservations.
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1. **ThreeFold's Role as a Bidder:**
* ThreeFold, as the protocol developer and ecosystem facilitator, often places bids on capacity to ensure the grid has sufficient resources for its own operations, strategic partnerships, or to bootstrap demand for new node types.
* These bids are typically structured as "Bid Tiers," as seen in the `overview.md` document. These tiers specify a certain number of nodes or slices with defined minimum performance, memory, and GPU requirements, along with a set price per month. This provides a stable revenue stream for farmers whose nodes meet these specifications.
* These bids are typically structured as "Bid Tiers". These tiers specify a certain number of nodes or slices with defined minimum performance, memory, and GPU requirements, along with a set price per month. This provides a stable revenue stream for farmers whose nodes meet these specifications.
2. **Other Entities as Bidders:**
* Beyond ThreeFold, other large-scale users, enterprises, or even decentralized applications (dApps) can place bids for significant amounts of capacity. This could be for long-term infrastructure needs, burst capacity for specific events, or to secure resources for their own user base.