info_tfgrid/collections/manual/knowledge_base/farming/poc_dao_rules.md

ThreeFold DAO Rules for Proof-of-Capacity

Table of Contents

• Introduction
• Technical Farming Requirements
• Suggested: improvements to proof-of-capacity
• TFGrid is a DAO
• Grid Enhancement Proposal

---

Note: The proof-of-capacity DAO rules will be updated for the next 3.14 grid release. Stay tuned.

Introduction

• The CU/SU reward gets expressed in TFT and registered in TFChain at 3Node registration time
  • For certified Nodes, the CU/SU reward was specified at sales/promotion time, this process is managed by ThreeFold Tech.
• CU/SU rewards are calculated from Resource Units
  • Certified Node gets 25% more farming rewards
  • TFT pricing is pegged to USD (pricing changes in line with TFT/USD rate)
• Rewards for NU and IP Addresses are dynamic
  • The TFChain tracks capacity utilization and as such the reward can be calculated for the Farmer
• All Internet capacity farmed is rewarded on a monthly basis according to minimum service level agreements
  • Minimum SLA = Service Level Agreement (see special section about SLA) needs to be achieved before TFT can be rewarded

Technical Farming Requirements

• Make sure you have 50GB SSD capacity min available per logical core (physical core times number of threads it can run), if not your calculated CU will be lower.
• Make sure your network connection is good enough, in future it will be measured and part of the Service Level Agreement.

{{#include tfgrid_min_sla.md}}

Important Information around TFT USD Price Used at Registration

This is for mainnet TFGrid 3.0:

• The TFT USD price used at 3Node registration at launch of mainnet is hardcoded in TFChain 3.0 at 0.08 USD per TFT (TFChain 3.0 as used in Jan 2022).
• Once the DAO is life, a new price will be approved by the DAO voters. Idea is to have this price re-visited more or less once a month, if needed faster.
• The TFT USD price used at 3Node registration is defined by the TFDAO at least once a month by means of GEP.

Suggested: improvements to proof-of-capacity

Suggestions will be made to improve PoC, the DAO will have to come to consensus before changes can be made.

• How to deal with a situation where a 3node adds or removes compute or storage capacity.
• ThreeFold is developing a way of how to detect possible fraud on PoC using TPM chip and dynamic generated code to execute random PoC checks.
• If PoC finds fraud e.g. trying to fake Internet capacity provided, the 3Node will be disabled automatically by Zero-OS and flagged as fraudulant. The Farmer will then have to re-register with a lower reputation for transparancy to the ecosystem. If TFTs are staked at that time, they will be locked permanently.
• How to improve the calculation of CU rewards to mitigate the difference in power provided between new and old hardware.

TFGrid is a DAO

• All of above information is public and can be see by everone of the community as per 3Node and Farmer (part of TFChain).
• Farming rewards methodology can and probably will get revised if the community wants this, DAO consensus needs to be achieved before changes can happen, this happens by means of a GEP.

Grid Enhancement Proposal

• Changes to above described mechanism or any other change request for the TFGrid is managed by grid enhancement proposals (GEP).
• Because we are a DAO, everything is open for change as long as consensus of community in accordance of TFDAO has been achieved.