# 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 TFT’s 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.