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_archive/tf_tokens/tokenomics.md

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+# 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)
+
+
+!!!wiki.include:token_toc