diff --git a/docs/core-concepts/burning.md b/docs/core-concepts/burning.md new file mode 100644 index 0000000..35064b2 --- /dev/null +++ b/docs/core-concepts/burning.md @@ -0,0 +1,54 @@ +--- +sidebar_position: 2 +--- + +# Burning + +## Token Model Overview + +Token burning permanently removes tokens from circulation. +When a percentage of real revenue is used to **buy and burn tokens**, it directly reduces the total supply, creating scarcity. +If demand stays constant or increases, the token price naturally rises. + +--- + +## Base Assumptions + +| Parameter | Value | +| -------------------------- | --------------------------------------------- | +| TFT Price (initial) | $0.10 | +| Market Cap (Fully Diluted) | $100,000,000 | +| Burn on Revenue | 10% | +| Revenue over 4 years | $1,000,000,000 | +| Tokens Burned | 1,000,000,000 | +| Tokens Left | 0 | +| Market Size Reference | Cloud & AI markets worth several trillion USD | + + +> Conclusion: There can never be 0 tokens in a functioning economy, so the price will keep rising as supply decreases. + +--- + +## Step-by-Step Logic + +1. **Starting Condition** + There are 1 billion TFT tokens in circulation, each worth $0.10, giving a $100 million total market cap. + +2. **Revenue-Driven Burn** + Ten percent (10%) of all generated revenue is used to purchase tokens on the open market and destroy them. + This converts real economic activity into direct buying pressure. + +3. **Cumulative Effect** + Over four years, with $1 billion in revenue, $100 million is used to buy TFT at market prices. + At $0.10 per token, this burns the full 1 billion tokens. + +4. **Deflationary Result** + As supply decreases, each remaining token represents a larger claim on the network’s total value. + Even if only part of the supply is burned, the reduced float and consistent demand drive higher prices. + +5. **Price Appreciation Mechanism** + + * Demand from users and investors remains or grows. + * Supply falls due to the burn. + * The balance of supply and demand shifts upward, increasing token price to maintain total market value. + diff --git a/docs/core-concepts/liquidity-pool.md b/docs/core-concepts/liquidity-pool.md new file mode 100644 index 0000000..d4f115e --- /dev/null +++ b/docs/core-concepts/liquidity-pool.md @@ -0,0 +1,30 @@ +--- +sidebar_position: 3 +--- + + +## Liquidity Pool + +There will be multiple liquidity pools. Each pool serves a specific purpose and has its own rules and mechanisms. + +We want to launch the liquidity pools 1-1-2026 + + +### CC-TFT + +- **Function**: Enables conversion between TFT and CC, its a position based liquidity pool. +- **Source of Funds**: Only CC generated from revenue can be converted into TFTF +- **Purpose**: Facilitates internal settlements and allows revenue to be converted into an asset (TFTF) that reflects the market value of TFT +- **Flexibility**: Allows users to maintain TFT exposure while holding stable CC + +### CC-USDC Pool + +- **Function**: Provides a controlled bridge between the internal ecosystem (TFTF) and an external stablecoin (USDC) +- **Purpose**: Enables fiat exit for operational needs while protecting against system drainage + +**Rules:** +- **Dutch Auction Principles**: The pool operates based on [Dutch auction mechanics](./dutch-auction-exit.md) +- **Liquidity Cap**: No more than 5% of the USDC liquidity in the pool can be used in a single transaction or period to prevent dramatic price shifts +- **Minimum Margin**: A minimum discount of 20% is maintained, ensuring a margin for the pool +- **Position-Based Pool**: The pool's mechanics are based on its current position and liquidity. More info at [Position Based LP](./position-based-lp.md) + diff --git a/docs/core-concepts/token-system.md b/docs/core-concepts/token-system.md index f7899f5..bf4a53b 100644 --- a/docs/core-concepts/token-system.md +++ b/docs/core-concepts/token-system.md @@ -1,5 +1,5 @@ --- -sidebar_position: 2 +sidebar_position: 1 --- # Token System @@ -8,87 +8,57 @@ Our ecosystem uses a multi-currency system to ensure both stability for utility ## Token Types +## TFP (ThreeFold Point) = is same as TFT but only exists in the marketplace + +- **Definition**: TFP is a converted TFT and only exists within the marketplace ecosystem for internal accounting and settlements. +- 1 TFP = 1 TFT (at time of conversion) +- TFP cannot be converted back to TFT until the market price of TFT exceeds the fixed conversion rate of CC to TFP (see below in swap section). + - in other words if on public markets the TFT is prices higher than 1 CC in USD value then you can convert back. +- Once the market price surpasses the fixed rate, users can return TFP to unlock their original TFT. +- When a user buys storage, compute, or bandwidth, they pay in CC, but the settlement to farmers is done in TFP. +- When users convert to TFP, their TFT is locked until they return TFP to unlock their TFT. + ### TFT (ThreeFold Token) + - **Type**: Tradable reserve asset - **Availability**: Traded on public blockchains - **Characteristics**: Price can be volatile, currently trading at artificially low prices - **Role**: Market-facing asset and entry gateway into the ecosystem - **Supply**: Scarce, capped at 1 billion maximum +- Not directly usable inside the marketplace, must be converted to TFP first ### CC (Cloud Credit) + - **Type**: Stable utility token - **Peg**: 1/1000 of a gram of gold (0.001g) - **Availability**: Only circulates within the digital marketplace (non-tradable) - **Purpose**: Primary medium of exchange for services within the ecosystem -- **Acquisition**: Users can acquire CC at a fixed rate of **1 CC for 2 TFT**, until the market price of TFT surpasses this rate - **Generation**: Minted when users enter with TFT or credit card, burned when exiting -### TFTF (TFT Future) -- **Type**: Internal accounting token -- **Link**: Tied to the market price of TFT -- **Purpose**: Used for internal accounting and liquidity management -- **Function**: Represents a future claim on TFT +--- -This system is supported by three distinct liquidity pools that manage the flow of value between these currencies and external markets. +## Swaps ---- +### TFP to CC Swap (both directions) -## Liquidity Pools +- **Function**: Allows users to swap TFP for CC at a fixed rate, which either mints new CC or burns existing CC +- **Acquisition**: Users can acquire CC at a fixed rate of **1 CC for 2 TFP**, until the market price of TFP surpasses this rate + - Open Question: maybe it should be 1 CC = 1 TFP? Lets use forum to decide. -There are three liquidity pools to manage the ecosystem's economy: +### USD to CC Swap (one way) -### 1. TFT to CC Swap (One-Way) +- **Function**: Allows users to purchase CC directly with USD via credit card +- **Rate**: Fixed rate of 1 CC = $0.128 (as of Oct 8, 2025, changes as the price of gold changes) +- **Purpose**: Provides an easy entry point for new users unfamiliar with TFT or cryptocurrencies +- **USD Treasury**: USD collected is held in a treasury to back the CC in circulation -- **Function**: Allows users to swap TFT for CC at a fixed rate, which either mints new CC or burns existing CC -- **Direction**: This is a one-way path; CC cannot be converted back to TFT through this mechanism for now -- **Purpose**: Provides a simple and predictable on-ramp for users to acquire Cloud Credits for service payments -- **Note**: This is not a liquidity pool but a direct mint/burn swap +--- -**How it works:** -1. Users enter with TFT or credit card -2. TFT gets **locked** (not converted) -3. Equivalent CC is **minted** based on the lock -4. Users receive CC in their wallet +## Link to Revenue -### 2. TFTF to CC Pool (Two-Way) - -- **Function**: Enables conversion between TFTF and CC based on the internal currency rate -- **Source of Funds**: Only CC generated from revenue can be converted into TFTF -- **Purpose**: Facilitates internal settlements and allows revenue to be converted into an asset (TFTF) that reflects the market value of TFT -- **Flexibility**: Allows users to maintain TFT exposure while holding stable CC - -### 3. TFTF-USDC Pool (Controlled Two-Way) - -- **Function**: Provides a controlled bridge between the internal ecosystem (TFTF) and an external stablecoin (USDC) -- **Purpose**: Enables fiat exit for operational needs while protecting against system drainage - -**Rules:** -- **Dutch Auction Principles**: The pool operates based on [Dutch auction mechanics](./dutch-auction-exit.md) -- **Liquidity Cap**: No more than 5% of the USDC liquidity in the pool can be used in a single transaction or period to prevent dramatic price shifts -- **Minimum Margin**: A minimum discount of 20% is maintained, ensuring a margin for the pool -- **Position-Based Pool**: The pool's mechanics are based on its current position and liquidity. More info at [Position Based LP](./position-based-lp.md) - ---- - -## Minting and Burning of CC - -The creation (minting) and destruction (burning) of Cloud Credits (CC) is a straightforward process tied to market activity. - -### Minting -CC is minted when a user **buys** it, either with TFT or by converting TFTF. This ensures that every CC in circulation is backed by an equivalent value. - -### Burning -CC is burned when it is **sold** or used to pay for services that are then settled in TFTF. - -### Key Principle: Mint and Destroy Cycle - -When users exit from CC: -1. Users request to exit from CC -2. CC is **destroyed/burned** -3. Locked TFT is **released** back to the user -4. Exit is subject to liquidity pool rules and Dutch auction mechanics - -This simple in-out mechanism guarantees that the supply of CC directly reflects the real-time demand and economic activity within the ecosystem. **The system doesn't create unbacked credits**; it only issues them when value is deposited. +- Hosters (farmers) are paid in TFP, which they can convert to TFT or hold for potential appreciation (80% of revenue) +- 10% of revenue is burned to reduce supply and maintain peg stability, burned TFT. +- 10% of revenue goes to ThreeFold Foundation for ecosystem development and maintenance --- @@ -101,7 +71,3 @@ This multi-token architecture solves several critical problems: - **Controlled Liquidity**: Prevents sudden token dumps while maintaining fairness - **Sustainable Growth**: Minting/burning mechanisms ensure backing and prevent inflation - **Operational Viability**: Farmers receive stable CC for planning while retaining TFT exposure options - -:::tip Next Steps -Learn more about how this system prevents impermanent loss and rewards long-term participation in [Position-Based Liquidity Pools](./position-based-lp.md). -::: diff --git a/docs/roadmap/_category_.json b/docs/roadmap/_category_.json new file mode 100644 index 0000000..e15ca92 --- /dev/null +++ b/docs/roadmap/_category_.json @@ -0,0 +1,8 @@ +{ + "label": "Roadmap", + "position": 5, + "link": { + "type": "generated-index", + "description": "Roadmap." + } +} \ No newline at end of file diff --git a/docs/appendix/dutch-auction-exit.md b/docs/roadmap/dutch-auction-exit.md similarity index 100% rename from docs/appendix/dutch-auction-exit.md rename to docs/roadmap/dutch-auction-exit.md diff --git a/docs/appendix/liquidity-pools-overview.md b/docs/roadmap/liquidity-pools-overview.md similarity index 87% rename from docs/appendix/liquidity-pools-overview.md rename to docs/roadmap/liquidity-pools-overview.md index ea625f6..a5e5a8e 100644 --- a/docs/appendix/liquidity-pools-overview.md +++ b/docs/roadmap/liquidity-pools-overview.md @@ -4,10 +4,10 @@ sidebar_position: 1 # Liquidity Pools: Simplified Overview -Our ecosystem uses three interconnected liquidity pools to manage the flow of value between tokens and external markets. This page provides a high-level understanding before diving into the detailed mechanics. +Our ecosystem uses interconnected liquidity pools to manage the flow of value between tokens and external markets. This page provides a high-level understanding before diving into the detailed mechanics. :::tip Start Here -If you're new to the system, read this overview first. Then explore the detailed documentation on [Position-Based Pools](/core-concepts/position-based-lp) and [Dutch Auction Exits](/core-concepts/dutch-auction-exit). +If you're new to the system, read this overview first. Then explore the detailed documentation on [Position-Based Pools](/roadmap/position-based-lp) and [Dutch Auction Exits](/roadmap/dutch-auction-exit). ::: --- @@ -120,14 +120,14 @@ Margin benefit: Goes to remaining pool members ## Traditional DeFi vs. Our Approach -| Feature | Traditional Liquidity Pools | ThreeFold Position-Based Pools | -|---------|---------------------------|-------------------------------| -| **LP Tokens** | Floating value tokens issued | No tokens - fixed positions tracked | -| **Your Share** | Changes with market volatility | Fixed based on contribution + time | -| **Exit** | Instant (swap LP tokens) | Controlled (Dutch auction) | -| **Impermanent Loss** | Yes - you lose value in volatile markets | No - your position doesn't change | -| **Gaming Risk** | Front-running, sandwich attacks | Protected by time-weighting | -| **Best For** | Active traders | Long-term supporters | +| Feature | Traditional Liquidity Pools | ThreeFold Position-Based Pools | +| -------------------- | ---------------------------------------- | ----------------------------------- | +| **LP Tokens** | Floating value tokens issued | No tokens - fixed positions tracked | +| **Your Share** | Changes with market volatility | Fixed based on contribution + time | +| **Exit** | Instant (swap LP tokens) | Controlled (Dutch auction) | +| **Impermanent Loss** | Yes - you lose value in volatile markets | No - your position doesn't change | +| **Gaming Risk** | Front-running, sandwich attacks | Protected by time-weighting | +| **Best For** | Active traders | Long-term supporters | --- diff --git a/docs/appendix/position-based-lp.md b/docs/roadmap/position-based-lp.md similarity index 100% rename from docs/appendix/position-based-lp.md rename to docs/roadmap/position-based-lp.md