4.4 KiB
Limited Token Supply
Circulation: Nr of TFT are by design limited
While the ThreeFold_Grid can expand infinitely, the nr of TFT is limited.
The technical limit of TFT is 4 Billion, but its very unlikely we will ever get there because the difficulty to get TFT goes up and there are lots of parameters taking care of scarcity.
- Learn more about the Threefold Grid and TFT valuation here.
TFT Burning, will lead to total nr of TFT going down
Starting TFGrid 3, 35% of the TFT used for buying capacity get burned by the TFChain.
this means as the grid gets used more this principle allone will lead to more TFT burned compared to TFT farmed, which means the grid expansion lead to less TFT in stead of more.
Sound Token Distribution
We believe that the TFT distribution is fair and should lead to the promotion and expansion of the ThreeFold project.
- 75% is reserved for farming where tokens will be created as a result of farming rewards.
- 3% is to fund community driven projects on the grid.
- 5% is used to promote the growth of the grid.
- 4% is attributed to a liquidity pool and for ecosystem contributions.
- 7% was used for technology & team acquisition
- 6% is for the contributors, founders & team.
Dive deeper into how the Threefold Tokens are distributed see here.
Scarcity to limit TFTs in circulation
Like every item, service, or currency, TFT derives part of its value from scarcity. The way minting/farming was designed enables to limit the amount of TFT available on the market.
The commercial capability of a 3Node is at least 6 times superior than the total amount of TFT that can be created over 4 years. This leads to a shortage of TFT.
Natural Economic Demand
The ThreeFold_Grid will attract individuals and communities to build, host and use applications and tools on it due to its many benefits:
- 100% ownership of their data, no more intermediaries.
- Superior reliability through peer-to-peer (decentralized) hosting
- Guaranteed and transparent execution of software through the Smart Contract for IT.
Developers can rent capacity from the ThreeFold_Grid in exchange for TFT only – no other currencies are used. This creates a natural economic demand and we call this process utilization.
Learn more on how to deploy applications and other workloads on the ThreeFold_Grid here.
Please note that TFT liquidity will grow as the Threefold_Grid will expand and will be used.
We are a drop in the ocean today
While we might already be the largest network today of peer-to-peer (decentralized) capacity, it's still insignificant compared to the big centralized cloud vendors. Given our technology is more advanced and represents an opportunity to decentralize the cloud industry, we expect there is a lot of room for growth.
The grid valuation page shows how the ThreeFold_Grid could grow to having a 10% market share of the current public cloud market. This would be equal to 500 billion USD by 2025 and translate to a 50 billion USD demand to utilize the capacity of the TF Grid, with TFT as the medium of exchange for capacity. This will eventually drive liquidity.
Note that we can't and won't make price predictions on TFT valuation and that all calculations made here are purely hypothetical.
Stability vs Hype: the hoarding nature of TFT
TFT holders (e.g. as a result of farming) might not want to sell their tokens at this point because they expect a further increase in value. This may result in less liquidity within the TFT economy.
Expectations are proven that when the price increases, valuation can enter a hype cycle that feeds into itself. This would lead to an economic bubble.
We do not believe in hype or speculation as mechanisms to drive ThreeFold or TFT value! While this can lead to big speculative gains for some, others loose from it. ThreeFold does not support speculative bubbles and the worsening in global inequalities that can occur as a consequence. We believe in a fair valuation of TFT derived from the natural economic demand of the TF Grid.
Vesting wallets
In March/April 2021 existing token holders decided to vest their tokens according this this scheme. This was done as a sign of ongoing confidence in the project.
See more about Vesting Pool here.
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