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# Cloud Units
![](img/cloudunits_abstract.jpg)
## What are Cloud Units?
Cloud units are the basis for price calculation for anyone intending to use/deploy on the Threefold Grid.
Cloud units are a unified way to account for virtual hardware resources on the ThreeFold Grid. They represent compute, storage and network equivalents to energy (kW - kilowatt). The are three categories of cloud units:
- Compute Unit (CU): The amount of data processing power in terms of virtual CPU (vCPU) cores (logical [CPUs](https://en.wikipedia.org/wiki/Central_processing_unit)) and Random Access Momory ([RAM](https://en.wikipedia.org/wiki/Random-access_memory)).
- Storage Unit (SU): The amount of storage capacity in terms of Hard Disk Drives (HDDs) and Solid State Drives (SSDs) in Gigabytes (GB).
- Network Unit (NU): The amount of data that travels in and out of storage units or compute units expressed in GB.
> Note: [Resource units](resource_units) are used to calculate SU & CU. Resource Units are used to measure compute and storage capacity produced by hardware.
When a solution is deployed on the ThreeFold Grid, the system automatically gathers the required amount of CU, SU, or NU. It is important to note that users are not billed upon reservation but only when utilizing the actualy CU, SU and NU. TF Certified Farmers can define the price of CU, SU, and NU they make available on the ThreeFold Grid.
## How is the price of Cloud Units (v4) calculated?
The following tables display how cloud units (v4) are calculated on the ThreeFold Grid. The 4th version of cloud units are used since Grid 2.2+ in mid 2020.
### Compute Capacity
| CU (Compute Unit) | | | | |
| ------------------------------------- | --- | --- | ---- | --------------- |
| GB Memory | 4 | 8 | 2 | |
| nr vCPU | 2 | 1 | 4 | |
| Passmark Minimum (expected is double) | 500 | 250 | 1000 | CPU performance |
The passmark (CPU benchmark or alternative) is not measured on the grid yet. It is used in simulators to check the mechanisms and ensure enough performance per CU is delivered.
Example of Compute unit:
- 4 GB memory & 2 virtual CPU (and 50GB of SSD disk space)
- Recommended price on TF Grid = 10 USD
- Alternative cloud price = between 40 USD and 180 USD
See how we compare with the market compute prices [here](pricing).
### Storage Capacity
| SU (Storage Unit) | HDD | SSD |
| ------------------- | ---- | --- |
| GB Storage Capacity | 1200 | 200 |
HDD is only usable for Zero Database driven storage (e.g. ThreeFold Quantum Safe Storage). 1.2 TB of HDD is provided following the advised storage policy of 16+4 with 20% overhead. So the net usable storage would be 1TB. In other words, the SU corresponds in that case to 1TB of net usable storage and an extra 200GB for redundancy.
Example of Storage unit:
- 1TB of usable storage as provided by the Zero-DBs (the backend storage systems)
- Recommended price on TF Grid for 1 SU = 10 USD
- Alternative cloud price = between 20 USD and 200 USD
See how we compare with market storage prices [here](pricing).
### Network
| NU (Network Unit = per GB) = NRU per month | GB (NRU) |
| ------------------------------------------ | -------- |
| GB transferred OUT or IN | 1 |
> We use SU-month and CU-month to show SU monthly costs. This can be compared to kilowatts (kW) to see electricity usage per month. Learn more about how this is calculated with [Resource units](resource_units), a way to measure the compute and storage capacity produced by hardware.
!!!def alias:cloudunits

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![](img/dao_whatis_.jpg)
- Decentralized = Online, global, uncensorable.
- Autonomous = Self-governing.
- Organization = Coordination & collaboration around shared objectives.
DAOs are an effective and safe way to work with like-minded folks around the globe.
Think of them like an internet-native business that's collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice.
This opens up so many new opportunities for global collaboration and coordination.
DAOs operate using smart contracts, which are essentially chunks of code that automatically execute whenever a set of criteria are met. These smart contracts establish the DAOs rules. Those with a stake in a DAO then get voting rights and may influence how the organization operates by deciding on or creating new governance proposals.
| DAO | A traditional organization |
| ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- |
| Usually flat, and fully democratized. | Usually hierarchical. |
| Voting required by members for any changes to be implemented. | Depending on structure, changes can be demanded from a sole party, or voting may be offered. |
| Votes tallied, and outcome implemented automatically without trusted intermediary. | If voting is allowed, votes are tallied internally, and the outcome of voting must be handled manually. |
| Services offered are handled automatically in a decentralized manner (for example distribution of philanthropic funds). | Requires human handling, or centrally controlled automation, prone to manipulation. |
| All activity is transparent and fully public. | Requires human handling, or centrally controlled automation, prone to manipulation. |
*Info from https://ethereum.org/en/dao/, picture from https://cointelegraph.com/ethereum-for-beginners*
Decentralized autonomous organization (DAO), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. A DAO's financial and voting transaction record and program rules are maintained on a blockchain.
Decentralized autonomous organizations are typified by the use of blockchain technology to provide a secure digital ledger to track financial and other community interactions across the internet, hardened against forgery by trusted timestamping and dissemination of a distributed database. This approach eliminates the need to involve a mutually acceptable trusted third party in a transaction, simplifying the transaction. The costs of a blockchain-enabled transaction and of the associated data reporting may be substantially offset by the elimination of both the trusted third party and of the need for repetitive recording of contract exchanges in different records. For example, the blockchain data could, in principle and if regulatory structures permit it, replace public documents such as deeds and titles. In theory, a blockchain approach allows multiple cloud computing users to enter a loosely coupled peer-to-peer smart contract collaboration.

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# What is a decentralized autonomous organization, and how does a DAO work?
![](img/dao_whatis_.jpg)
A decentralized autonomous organization (DAO) is an entity with no central leadership. Decisions get made from the bottom-up, governed by a community organized around a specific set of rules enforced on a blockchain.
DAOs are internet-native organizations collectively owned and managed by their members. They have built-in treasuries that are only accessible with the approval of their members. Decisions are made via proposals the group votes on during a specified period.
A DAO works without hierarchical management and can have a large number of purposes. Freelancer networks where contracts pool their funds to pay for software subscriptions, charitable organizations where members approve donations and venture capital firms owned by a group are all possible with these organizations.
Before moving on, its important to distinguish a DAO, an internet-native organization, from The DAO, one of the first such organizations ever created. The DAO was a project founded in 2016 that ultimately failed and led to a dramatic split of the Ethereum network.
## How does a DAO work?
As mentioned above, a DAO is an organization where decisions get made from the bottom-up; a collective of members owns the organization. There are various ways to participate in a DAO, usually through the ownership of a token.
DAOs operate using smart contracts, which are essentially chunks of code that automatically execute whenever a set of criteria are met. Smart contracts are deployed on numerous blockchains nowadays, though Ethereum was the first to use them.
These smart contracts establish the DAOs rules. Those with a stake in a DAO then get voting rights and may influence how the organization operates by deciding on or creating new governance proposals.
This model prevents DAOs from being spammed with proposals: A proposal will only pass once the majority of stakeholders approve it. How that majority is determined varies from DAO to DAO and is specified in the smart contracts.
DAOs are fully autonomous and transparent. As they are built on open-source blockchains, anyone can view their code. Anyone can also audit their built-in treasuries, as the blockchain records all financial transactions.
Typically, a DAO launch occurs in three major steps
Smart contract creation: First, a developer or group of developers must create the smart contract behind the DAO. After launch, they can only change the rules set by these contracts through the governance system. That means they must extensively test the contracts to ensure they dont overlook important details.
Funding: After the smart contracts have been created, the DAO needs to determine a way to receive funding and how to enact governance. More often than not, tokens are sold to raise funds; these tokens give holders voting rights.
Deployment: Once everything is set up, the DAO needs to be deployed on the blockchain. From this point on, stakeholders decide on the future of the organization. The organizations creators — those who wrote the smart contracts — no longer influence the project any more than other stakeholders.
## Why do we need DAOs?
Being internet-native organizations, DAOs have several advantages over traditional organizations. One significant advantage of DAOs is the lack of trust needed between two parties. While a traditional organization requires a lot of trust in the people behind it — especially on behalf of investors — with DAOs, only the code needs to be trusted.
Trusting that code is easier to do as its publicly available and can be extensively tested before launch. Every action a DAO takes after being launched has to be approved by the community and is completely transparent and verifiable.
Such an organization has no hierarchical structure. Yet, it can still accomplish tasks and grow while being controlled by stakeholders via its native token. The lack of a hierarchy means any stakeholder can put forward an innovative idea that the entire group will consider and improve upon. Internal disputes are often easily solved through the voting system, in line with the pre-written rules in the smart contract.
By allowing investors to pool funds, DAOs also give them a chance to invest in early-stage startups and decentralized projects while sharing the risk or any profits that may come out of them.
## The principal-agent dilemma
The main advantage of DAOs is that they offer a solution to the principal-agent dilemma. This dilemma is a conflict in priorities between a person or group (the principal) and those making decisions and acting on their behalf (the agent).
Problems can occur in some situations, with a common one being in the relationship between stakeholders and a CEO. The agent (the CEO) may work in a way thats not in line with the priorities and goals determined by the principal (the stakeholders) and instead act in their own self-interest.
Another typical example of the principal-agent dilemma occurs when the agent takes excessive risk because the principal bears the burden. For example, a trader can use extreme leverage to chase a performance bonus, knowing the organization will cover any downside.
DAOs solve the principal-agent dilemma through community governance. Stakeholders arent forced to join a DAO and only do so after understanding the rules that govern it. They dont need to trust any agent acting on their behalf and instead work as part of a group whose incentives are aligned.
Token holders interests align as the nature of a DAO incentivizes them not to be malicious. Since they have a stake in the network, they will want to see it succeed. Acting against it would be acting against their self-interests.
## What was The DAO?
The DAO was an early iteration of modern decentralized autonomous organizations. It was launched back in 2016 and designed to be an automated organization that acted as a form of venture capital fund.
Those who owned DAO tokens could profit from the organizations investments by either reaping dividends or benefitting from price appreciation of the tokens. The DAO was initially seen as a revolutionary project and raised $150 million in Ether (ETH), one of the greatest crowdfunding efforts of the time.
The DAO launched on April 30, 2016, after Ethereum protocol engineer Christoph Jentzsch released the open-source code for an Ethereum-based investment organization. Investors bought DAO tokens by moving Ether to its smart contracts.
A few days into the token sale, some developers expressed concerns that a bug in The DAOs smart contracts could allow malicious actors to drain its funds. While a governance proposal was set forth to fix the bug, an attacker took advantage of it and siphoned over $60 million worth of ETH from The DAOs wallet.
At the time, around 14% of all ETH in circulation was invested in The DAO. The hack was a significant blow to DAOs in general and the then one-year-old Ethereum network. A debate within the Ethereum community ensued as everyone scrambled to figure out what to do. Initially, Ethereum co-founder Vitalik Buterin proposed a soft fork that would blacklist the attackers address and prevent them from moving the funds.
The attacker or someone posing as them then responded to that proposal, claiming the funds had been obtained in a “legal” way according to the smart contracts rules. They claimed they were ready to take legal action against anyone who tried to seize the funds.
The hacker even threatened to bribe ETH miners with some of the stolen funds to thwart a soft fork attempt. In the debate that ensued, a hard fork was determined to be the solution. That hard fork was implemented to roll back the Ethereum networks history to before The DAO was hacked and reallocate the stolen funds to a smart contract that allowed investors to withdraw them. Those who disagreed with the move rejected the hard fork and supported an earlier version of the network, known as Ethereum Classic (ETC).
## Disadvantages of DAOs
Decentralized autonomous organizations arent perfect. They are an extremely new technology that has attracted much criticism due to lingering concerns regarding their legality, security and structure.
MIT Technology Review has, for example, revealed it considers it a bad idea to trust the masses with important financial decisions. While MIT shared its thoughts back in 2016, the organization appears to have never changed its mind on DAOs — at not least publicly. The DAO hack also raised security concerns, as flaws in smart contracts can be hard to fix even after they are spotted.
DAOs can be distributed across multiple jurisdictions, and theres no legal framework for them. Any legal issues that may arise will likely require those involved to deal with numerous regional laws in a complicated legal battle.
In July 2017, for example, the United States Securities and Exchange Commission issued a report in which it determined that The DAO sold securities in the form of tokens on the Ethereum blockchain without authorization, violating portions of securities law in the country.
## Examples of DAOs
Decentralized autonomous organizations have gained traction over the last few years and are now fully incorporated into many blockchain projects. The decentralized finance (DeFi) space uses DAOs to allow applications to become fully decentralized, for example.
To some, the Bitcoin (BTC) network is the earliest example of a DAO there is. The network scales via community agreement, even though most network participants have never met each other. It also does not have an organized governance mechanism, and instead, miners and nodes have to signal support.
However, Bitcoin is not seen as a DAO by todays standards. By current measures, Dash would be the first true DAO, as the project has a governance mechanism that allows stakeholders to vote on the use of its treasury.
Other, more advanced DAOs, including decentralized networks built on top of the Ethereum blockchain, are responsible for launching cryptocurrency-backed stablecoins. In some cases, the organizations that initially launched these DAOs slowly give away control of the project to one day become irrelevant. Token holders can actively vote on governance proposals to hire new contributors, add new tokens as collateral for their coins or adjust other parameters.
In 2020, a DeFi lending protocol launched its own governance token and distributed it through a liquidity mining process. Essentially, anyone who interacted with the protocol would receive tokens as a reward. Other projects have since replicated and adapted the model.
Now, the list of DAOs is extensive. Over time, it has become a clear concept that has been gaining traction. Some projects are still looking to achieve complete decentralization through the DAO model, but its worth pointing out they are only a few years old and have yet to achieve their final goals and objectives.
As internet-native organizations, DAOs have the potential to change the way corporate governance works completely. While the concept matures and the legal gray area they operate in is cleared, more and more organizations may adopt a DAO model to help govern some of their activities.
> info from: https://cointelegraph.com/ethereum-for-beginners/what-is-a-decentralized-autonomous-organization-and-how-does-a-dao-work

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![](img/farming_rewards_.png ':size=350x')
# Farming Reward 3.0
The amount of ThreeFold_Token earned by farmers is relative to the amount of compute, storage or network capacity they provide to the ThreeFold Grid as recorded by the proof-of-capacity algorythm. This section covers some farming and token reward basics.
## How do farmer earn TFT?
ThreeFold Blockchain (TFChain) rewards farmers for providing Internet capacity and expanding the ThreeFold Grid. They earn ThreeFold_Token. When successfully verified by proof-of-capacity, farmers earn TFT according to the amount of Internet capacity registered in TFChain.
## Proof-of-Capacity
The Proof-of-Capacity records Internet resources from the 3Node:
!!!include:farming_reward_calculation
## More Info
- [see Proof of Capacity](proof_of_capacity) : **important info inside !!!**
- [Calculation rules for cloudunits from Resource Units.](resource_units_calc_cloudunits)
> DISCLAIMER: ThreeFold Dubai organizes this process. This process is the result of the execution of code written by open source developers (zero-os and minting code) and a group of people - who checks this process voluntarily. No claims can be made or damages asked for to any person or group related to ThreeFold Dubai like but not limited to the different councils. This process changes for TFGrid 3.X once the TFDAO is fully active.
!!!def alias:farming_reward,farming_reward,farming_reward3,farming_reward
!!!tfpriceinfo

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# Farming Logic v2.0
TFT are only created (minted) when new capacity (storage & compute) is added to the ThreeFold Grid in the form of hardware. This is done by TF_Farmers, ThreeFolds more sustainable equivalent of cryptocurrency miners. Farming is calculated once a month by the opensource minting software, on the first day of the next month.
The amount of TFTs that are created by farmers depends on four variables:
### 1. Proof-of-Capacity
The server/Node specs of the Farmers hardware:
* Compute Capacity (CPU)
* Memory Capacity (RAM)
* Storage Capacity (SSD/HDD)
The performance/capability of this hardware is attributed with cloudunits that then summarized to a CPR for the individual node. The higher the CPR, the more tokens are earned. Simply put, the more capable the hardware, the more TFTs are earned.
### 2. Grid Specs
* Tokens are limited in supply
- For that minting is calculated using a "Farming Difficulty" parameter.
- The difficulty factor determining how fast TFTs are created through farming).
- Farming difficulty follows the logic of diminishing returns, meaning that over time, less and less TFT are earned in relation to the size of the grid.
* This is the same for all farmers at every point in time.
### 3. The price of TFT in USD
To maximize the stability of farming returns, the amount of TFTs earned for farming is normalized against the US Dollar. This ensures that farming profits are stable in relation to currencies used to do the investment with (USD is possibly less speculative than TFT).
> Disclaimer: Please note that we can't and won't make price predictions on TFT evaluation and all assumptions made here are purely hypothetical.
### 4. Certification
Providing hardware reliably is rewarded with a certification that leads to increased earnings in TFT for certified farmers. We are currently in the creation process of a new certification program.
> update: march 2021 (certification is not possible on v2 of Farming Logic)
## Minting Rules V2.0
- Farming is calculated once a month, on the first day of the next month.
- executed by open source minting (farming) code
- all the proof of capacities are stored on a redundant storage system and hashed (hashed means fingerprinted)
- these hashes verify the authenticity of the report
- 4 days later the TFT are being transferred to the farmer.
- minting consensus needs to be achieved before minting can happen
- in transaction message the hash will be stored which is link to the proof of the capacity for each minting operation
> DISCLAIMER: ThreeFold Dubai organizes this process. This process is the result of the execution of code written by open source developers (zero-os and minting code) and a group of people - who checks this process voluntarily. No claims can be made or damages asked for to any person or group related to ThreeFold Dubai like but not limited to the different councils.
### Maximum amount of TFT
There is a maximum amount of 4 billion TFT minted.
### Calculation of TFT minted per Node per Period
> ```Amount of TFT = Amount of CPR * (CPR expressed in TFT / 6) * (1/ Difficulty Level)```
### Cloud Production Rate (CPR)
The Cloud Production Rate (CPR) indicates how productive a compute or server hardware platform is. The higher the CPR, the more capacity in form of compute and storage is added. This makes it simple for a non-tech farmer to select the best farming hardware for the budget available. It is similar to the hashrate of a Bitcoin miner for example.
To calculate the CPR are very simple and straightforward formula is used:
> ```CPR = 1.5 * the amount of Compute Units (CU) of the hardware + the amount of Storage Units (SU) of the hardware```
The CPR Price is USD 40 as of Q1 2020. CPR Price in TFT is 40 USD / TFT price
#### Cloud Units
Cloud Units [see here](cloudunits)
#### CPR expressed in TFT
Until the end of year 2020 the following USD TFA price is used for minting: USD 0.15 plus 2% monthly starting May 2020.
### Difficulty Level
The amount of TFTA that Farmers receive for farming depends on the amount of TFT(A) that are already in circulation. The more TFT(A) already exists, the lower the rewards. This follows the principle of diminishing returns. We call this farming limitation to reward Difficulty Level.
When the amount of existing TFT nears 4 billion, the amount of TFT received by farmers will be less. Once the maximum of 4 billion TFT has been reached, there won't be any rewards for farming anymore.
## Python Pseudo Farming Code
Next code is there to let you explore how the minting (farming) of tokens has been programmed in a more simple language.
This is called pseudo code which means it's not the real code but should have the same logic.
```python
class TFTFarmingCalculator:
def __init__(self, node_id, node_config, threefold_explorer ):
self.threefold_explorer = threefold_explorer
#configuration as used for the node
self.node_config = node_config
#unique node id in the TFGrid
self.node_id = node_id
@property
def is_certified(self):
"""
ThreeFold has created a certification program which Farmers can opt in for.
Certified farmers will have to buy their hardware from a certified hardware vendor.
ThreeFold makes sure that that hardware is optimal from energy perspective
and that the security features are optimally implemented
e.g. silicon route of trust, secure bios & boot, ...
ThreeFold will also make sure that network is good enough to the internet,
If certified farmers will be in breach with their farming contract, they loose
their certification and become a default farmer.
ThreeFold with the help of the ThreeFold Explorer nodes checks on quality achieved in
relation to the certification contract.
If checks not good enough the the certification process will mark in the blockchain
database as used by the explorer that node is no longer certified, which means
this check will return False.
The foundation will give free certification to boxes which benefit the distribution
of nodes in the grid e.g. right now in Africa almost no capacity, whoever put boxes which are
well distributed and they are bought from a certified partner will not have to pay for the
certification a monthly or setup fee for a certain period.
The boxes will still be certified though and the network uptime & capacity measured, its
not a free pass to get more TFT.
"""
return self.threefold_explorer.is_certified(self.node_id)
@property
def network_capability_zone(self):
"""
south america & africa are emerging location, today the explorer returns 1
ThreeFold uses best possible technical means to define the location of the node
depending of the location ad network capability map as maintained by the foundation
a number is returned
@return between 1 and 20, today check is very easy, when emerging country return 1, otherwise 10
"""
return 1 #not implemented yet
return self.threefold_explorer.network_capability_zone_get(self.node_id)
def bandwith_check(self):
"""
returns between 0 an 1, 1 is 100%, 0 is None
for certified hardware its always 100% (1)
"""
if self.is_certified:
return 1
return 1 #not implemented yet in TFGrid
# checks the threefold explorer & returns available bandwidth in mbit/sec avg
# measurement done 24 times per day each time from node region (europe to europe, ...)
# 2 MB of data is uploaded and downloaded from a random chosen node in the grid
# local nodes are not used (check is done to see if nodes are local)
bandwidth_availability = self.threefold_explorer.bandwidth_availability_get(self.node_id) #mbit/sec
if bandwidth_availability > 2 * self.network_capability_zone:
return 1
elif bandwidth_availability > 1 * self.network_capability_zone:
return 0.5
else:
return 0
def utilization_check(self,month):
"""
checks the threefold explorer & returns the utilization of the node
returns between 0 an 1, 1 is 100%, 0 is None
for the first 12 months its always 1
for certified hardware its always 100%
"""
if self.is_certified():
return 1
return 1 #not implemented yet
startmonth = self.threefold_explorer.month_start_get(self.node_id)
utilization_rate = self.threefold_explorer.utilization_rate_get(self.node_id)
if month - startmonth < 12:
#first 12 months utilization rate is 1, means all is rewarded
return 1
else:
if utilization_rate > 50:
return 1
if utilization_rate > 25:
return 0.5
return 0
def uptime_check(self):
return 1 #not implemented yet
#untill certification progr is active we will not check uptime
#this is planned for end summer 2020 (to be confirmed)
if self.certified_capacity:
#the threefold explorer return 1 if agreed sla achieved (part of certification)
#the std requested SLA is 99.8% for a certified farmer (1.44h per month)
return self.threefold_explorer.uptime_sla_achieved(self.node_id)
else:
uptime = self.threefold_explorer.uptime_achieved(self.node_id)
if uptime < 99:
#corresponds to 7.2h, so if non certified capacity node was out for more
#than 7.2h then no TFT farmed
return 0
return 1
def difficulty_level_get(self, month):
"""
return difficulty in relation to how many token there are
the difficulty factor makes sure that there can never be more than 4 billion tokens
"""
nr_of_tft_ever_farmed = self.threefold_explorer.nr_tft_total_get()
p = nr_of_tft_ever_farmed / 4000000000
if p > 0.999:
return 0
else:
diff_level = 1 - p
return diff_level
def farming_cpr_tft(self,month):
"""
cpr is the cloud production rate, like a hashrate for a bitcoin miner
in our case a production rate of capacity for the internet
cost to buy 1 cpr production capability in Q1 2020 = 40USD
this is the nr put in the code
we say ROI for batch 1 (month 1) is 6 months, thats why we need to devide by 6
ROI = Return on investment
"""
cpr_investment_cost_in_usd_month = j.tools.tfgrid_simulator.simulator_config.tokenomics.cpr_investment_usd / 6
return cpr_investment_cost_in_usd_month / self.simulation.tft_price_get(month)
def tft_farm(self, month):
"""
calculate the farming of tft's
"""
#cpr is like a hashrate for a bitcoin miner
#in our case it represents the capability for a node to produce cloud units (our IT capacity)
tft_farmed = self.node_config.cpr * self.farming_cpr_tft(month) * self.difficulty_level_get(month)
return tft_farmed * self.uptime_check() * self.utilization_check() * self.bandwith_check()
```
- ```tft_farm``` is the method which returns the tokens farmed
## History of changes
- no changes have happened for last 6 months (Dec 2022)
!!!include:farming_toc

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# Grid Enhancement Proposal
![](img/gep.png)
GEP stands for Grid Enhancement Proposal. A GEP is a design document providing information to the ThreeFold community, or describing a new feature for the TFGrid or its processes or environment. The GEP should provide a concise technical specification of the feature and a rationale for the feature.
- A GEP gets registered in TFChain. TFDAO makes this possible
- Community has to approve or not a GEP
- Once enough consensus achieved the GEP will be executed upon, whereas "consensus" is a variable % per GEP and will be defined when sepcs are ready.
- Validator Nodes of our L1 TFChain will make sure GEP is properly implemented and consensus also achieved on that level.
*some inspiration comes from https://www.python.org/dev/peps/pep-0001*
!!def alias:gep

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![](img/dao_whatis_.jpg)
# ThreeFold DAO
The ThreeFold DAO allows autonomous operation of the TFChain and TFGrid .
Amongst others the DAO needs to arrange
As well as
- distribution of TFT grants
- manage code upgrade of TFChain and ZOS
- approval for changes to anything in our ecosystem, by means of GEP e.g.
- changes to tokenomics e.g. changes related to
- farming rewards
- cultivation flows
- pricing of grid capacity
- new features in TFChain
- rewards for sales channels, solution providers (v3.2+)
!!include page:dao_info
!!def alias:tf_dao,tfdao

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# ThreeFold_Grid
ThreeFold_Grid is a global, neutral, and sustainable network of autonomous storage and compute Internet capacity created by ThreeFold Farmers, with more than 80,000,000 GB and 20,000 cores existing today. On this Grid, IT capacity is indexed / registered on the TFChain for easy discovery by purchasers. Any application which can run on Linux can run on the ThreeFold_Grid but with more privacy, security, closer to the end-user, and at a much lower cost.
This Internet capacity is produced and allocated locally - similar to the way electricity and other utilities are purchased today. This allows any digital service or application provider to host their services and applications in proximity to the end user leading to significantly greater performance, a lower price point and better margins. This is both more cost effective and green.
!!!def alias:Threefold_Grid,tf_grid