info_tfgrid/collections/_archive/tf_tokens/tokenomics.md

Tokenomics Overview

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 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.

Tokens are burned as result of utilization which leads to nr of tokens to be limited.

Proof of Utilization

see Utilization Token Flow

Limited Supply & Liquidity Drivers

See Limited Supply & Liquidity Drivers

TF Grid is valuable

See Valuable TF Grid

Vesting

Many tokens are in vesting wallets see Vesting.

Token Distribution

Token Distribution

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