65fbdb836b
- Based on working minting_plan repository - Configured for threefold.info/economics deployment - Added ops documentation for server deployment - Updated baseUrl and URL configuration
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Token System
Our ecosystem uses a multi-currency system to ensure both stability for utility and opportunities for growth and investment.
Token Types
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
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.
Liquidity Pools
There are three liquidity pools to manage the ecosystem's economy:
1. TFT to CC Swap (One-Way)
- 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:
- Users enter with TFT or credit card
- TFT gets locked (not converted)
- Equivalent CC is minted based on the lock
- Users receive CC in their wallet
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
- 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
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:
- Users request to exit from CC
- CC is destroyed/burned
- Locked TFT is released back to the user
- 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.
Why This System?
This multi-token architecture solves several critical problems:
- Price Stability: CC provides predictable pricing for services (pegged to gold)
- Market Opportunity: TFT remains tradable with upside potential
- 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. :::