info_tfgrid/_archive/tf_tokens/tokenomics.md

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2024-02-27 11:11:12 +00:00
# Tokenomics Overview
![](img/tokenomincs3_.jpg)
## Proof of Capacity = Creation/Minting of TFTs
TFTs are rewarded when new capacity (storage & compute) is added to the ThreeFold_Grid in the form of hardware.
[Farmers](farming_intro) farm (mine) capacity for the ThreeFold Grid. A TF Farmer is ThreeFolds more sustainable equivalent of cryptocurrency miners.
The amount of TFTs that are created by farmers depends on three variables:
1. Compute Capacity (CPU)
2. Memory Capacity (RAM)
3. Storage Capacity (SSD/HDD)
Learn more about the farming rewards [here](farming_reward).
Tokens are burned as result of utilization which leads to nr of tokens to be limited.
## Proof of Utilization
see [Utilization Token Flow](proof_of_utilization)
## Limited Supply & Liquidity Drivers
See [Limited Supply & Liquidity Drivers](tft_limited_supply)
## TF Grid is valuable
![](img/tft_like_btc_.jpg)
See [Valuable TF Grid](grid_valuation)
## Vesting
Many tokens are in vesting wallets see [Vesting](vesting_overview).
## Token Distribution
[Token Distribution](token_overview)
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!!!wiki.include:token_toc