2024-02-27 11:11:12 +00:00
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# Tokenomics Overview
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## Proof of Capacity = Creation/Minting of TFTs
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TFTs are rewarded when new capacity (storage & compute) is added to the ThreeFold_Grid in the form of hardware.
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[Farmers](farming_intro) farm (mine) capacity for the ThreeFold Grid. A TF Farmer is ThreeFolds more sustainable equivalent of cryptocurrency miners.
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The amount of TFTs that are created by farmers depends on three variables:
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1. Compute Capacity (CPU)
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2. Memory Capacity (RAM)
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3. Storage Capacity (SSD/HDD)
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Learn more about the farming rewards [here](farming_reward).
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Tokens are burned as result of utilization which leads to nr of tokens to be limited.
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## Proof of Utilization
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see [Utilization Token Flow](proof_of_utilization)
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## Limited Supply & Liquidity Drivers
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See [Limited Supply & Liquidity Drivers](tft_limited_supply)
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## TF Grid is valuable
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See [Valuable TF Grid](grid_valuation)
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## Vesting
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Many tokens are in vesting wallets see [Vesting](vesting_overview).
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## Token Distribution
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[Token Distribution](token_overview)
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2024-03-01 01:48:25 +00:00
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!!!wiki.include:token_toc
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