241 lines
7.5 KiB
Markdown
241 lines
7.5 KiB
Markdown
---
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sidebar_position: 5
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---
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# Farming Economics
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Understanding how ThreeFold farmers earn money and the role of SPORE tokens in the ecosystem.
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## What is SPORE?
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**SPORE** is the native token of the ThreeFold ecosystem. Think of it as your reward for providing compute, storage, and network resources to the decentralized grid.
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### Key Facts About SPORE
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| **Feature** | **Details** |
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|-------------|-------------|
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| **Current Price** | $0.01 USD per SPORE (fixed until June 30, 2026) |
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| **Price After June 2026** | Will float based on market demand |
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| **What You Earn** | SPORE tokens for providing capacity |
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| **Maximum Supply** | 10 billion SPORE (capped) |
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| **Utility** | Payment for farmers, ecosystem growth token |
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### Why SPORE Value Should Increase
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1. **Burning reduces supply** - 10% of all revenue burns SPORE, shrinking total supply
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2. **Demand increases** - As more users adopt ThreeFold, demand for SPORE grows
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3. **Fewer tokens + more demand = higher price**
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---
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## How Revenue Works
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When users rent your node's resources, payments are distributed automatically:
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```mermaid
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graph LR
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A[User Pays for Resources] --> B[80% to Farmer<br/>SPORE Tokens]
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A --> C[10% Burned<br/>Removed from circulation]
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A --> D[10% ThreeFold<br/>Development]
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B --> E[Your SPORE Balance Increases]
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C --> F[Total SPORE Supply Decreases<br/>Each token worth more]
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D --> G[Funds development<br/>of the ecosystem]
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```
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### Revenue Split Example
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**User pays $10 for compute resources:**
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| **Recipient** | **Amount** | **What Happens** |
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|---------------|------------|------------------|
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| **You (Farmer)** | $8 (800 SPORE) | Added to your balance |
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| **Burned** | $1 (100 SPORE) | Permanently destroyed |
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| **ThreeFold** | $1 (100 SPORE) | Funds development |
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---
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## What Happens When SPORE is Burned?
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Burning is like **removing tokens from circulation permanently**. Here's why this is good for farmers:
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### The Simple Math
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**Price = Market Demand ÷ Available Supply**
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- **Without burning**: Supply stays constant, price rises slowly with demand
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- **With burning**: Supply shrinks, price rises much faster
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### Example Over Time
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| **Year** | **SPORE Burned** | **Remaining Supply** | **Effect on Price** |
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|----------|------------------|---------------------|-------------------|
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| Year 1 | 1 billion | 9 billion | ↑ 11% scarcity |
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| Year 2 | 2 billion | 7 billion | ↑ 30% scarcity |
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| Year 3 | 3 billion | 6 billion | ↑ 40% scarcity |
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| Year 4 | 4 billion | 6 billion | ↑ 67% scarcity |
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*Your SPORE holdings become more valuable as supply decreases*
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---
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## Managing Your SPORE Earnings
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You have three main options with your earned SPORE:
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### Option 1: Hold (Recommended)
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**Keep your SPORE to benefit from price appreciation**
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- ✅ **Price growth potential** - Burning reduces supply
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- ✅ **Long-term wealth building** - Early holders benefit most
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- ✅ **No action needed** - Just let it grow
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### Option 2: Convert to Stable Currency
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**Swap SPORE for Cloud Credits (CC) for stability**
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- ✅ **Stable value** - CC pegged to gold
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- ✅ **Predictable budgeting** - No price volatility
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- ✅ **Can convert back** - Future flexibility
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### Option 3: Sell for Real Money
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**Convert SPORE to USD, EUR, or other currencies**
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- ✅ **Immediate cash** - Use for other investments
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- ✅ **Liquidity** - Access to real-world money
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- ❌ **Miss appreciation** - Give up future growth
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---
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## Real Earning Scenarios
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### Scenario 1: Mini 1 Node at 50% Utilization
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| **Parameter** | **Calculation** | **Result** |
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|---------------|-----------------|------------|
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| Hardware Cost | $350 one-time | - |
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| Monthly Revenue | 7 slices × $6 | $42/month |
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| Your Share (80%) | $42 × 0.80 | $33.60/month |
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| In SPORE | $33.60 ÷ $0.01 | 3,360 SPORE/month |
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| Annual Earnings | 3,360 × 12 | 40,320 SPORE/year |
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| At Current Price | 40,320 × $0.01 | $403.20/year |
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### Scenario 2: Edge AI Node at Full Hosting
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| **Parameter** | **Value** |
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|---------------|-----------|
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| Purchase Price | ~$2,000 (varies) |
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| Monthly Earning | 6,667 SPORE (€66.67) |
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| Annual SPORE | 80,004 SPORE/year |
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| At Current Price | $800.04/year |
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| Break-even Time | ~2.5 years |
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### Scenario 3: Nvidia 6000 at High Utilization
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| **Parameter** | **Value** |
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|---------------|-----------|
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| Hardware Cost | $15,000 |
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| Monthly Earning | 225,000 SPORE ($2,250) |
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| Annual Earnings | $27,000/year |
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| ROI | 180% annually |
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*Results vary based on utilization, market demand, and network growth*
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---
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## SPORE vs Other Options
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| **Investment** | **SPORE Farming** | **Traditional Server** | **Cloud Hosting** |
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|----------------|-------------------|----------------------|-------------------|
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| **Initial Cost** | $350-$15,000 | $2,000-$50,000 | $0 upfront |
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| **Ongoing Revenue** | SPORE tokens | None | None |
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| **Ownership** | Full control | Full control | None |
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| **Market Risk** | Token volatility | Hardware depreciation | None |
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| **Earning Potential** | Growing + appreciation | None | None |
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---
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## Benefits for Early Farmers
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### Why Start Now?
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1. **Fixed SPORE price** - $0.01 until June 2026 (predictable earnings)
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2. **Network growth** - More users = more demand = higher prices
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3. **Burning benefits** - Your holdings become scarcer over time
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4. **First-mover advantage** - Lower competition for hosting demand
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### Risk Considerations
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- **Hardware investment** - Nodes require upfront cost
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- **Token volatility** - SPORE price may fluctuate after 2026
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- **Market demand** - Earnings depend on network adoption
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- **Competition** - More farmers = more supply to compete with
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---
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## Getting Started with SPORE
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### Step 1: Set Up Your Node
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[Follow our setup guide](/getstarted/farming/setup) to get your node online and earning SPORE automatically.
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### Step 2: Monitor Your Earnings
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- **Dashboard tracking** - View SPORE balance and earning history
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- **Monthly reports** - Track utilization and revenue trends
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- **Price monitoring** - Watch SPORE market developments
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### Step 3: Manage Your Portfolio
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- **Start holding** - Benefit from early price stability
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- **Consider hybrid approach** - Keep some SPORE, convert some to CC
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- **Stay informed** - Follow ThreeFold developments
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---
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## Common Questions
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<details>
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<summary><strong>When will I start earning SPORE?</strong></summary>
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As soon as your node is online and starts providing capacity. The first earnings typically appear within 24-48 hours of going live.
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</details>
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<details>
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<summary><strong>Can I lose money farming?</strong></summary>
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Your SPORE earnings depend on utilization. Even with minimal usage, bid tiers ensure some baseline revenue. Hardware costs are one-time, so long-term farming should be profitable.
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</details>
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<details>
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<summary><strong>What if SPORE price drops?</strong></summary>
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The burning mechanism (10% of revenue) creates upward pressure on price. SPORE price is fixed at $0.01 until June 2026, providing stability during the early period.
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</details>
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<details>
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<summary><strong>How often do I get paid?</strong></summary>
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SPORE accumulation is continuous and automatic. You can check your balance anytime in the dashboard.
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</details>
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---
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## Resources
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- **[SPORE Token Details](/getstarted/farming/economics)** - Deeper dive into tokenomics
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- **[Community Forum](https://forum.threefold.io)** - Discussions with experienced farmers
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- **[Market Data](https://stats.grid.tf)** - Real-time SPORE and network statistics
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- **[Farming Manual](https://manual.grid.tf/farmers)** - Technical implementation details
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---
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:::tip Ready to Start Earning?
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Set up your first node and begin earning SPORE today: **[Setup Guide](/getstarted/farming/setup)**
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::: |