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Introduction to the ThreeFold Token (TFT)
Projects that utilize blockchain, such as ThreeFold, use digital currencies for the many benefits they provide. This includes having decentralized systems, security and privacy for users, faster and cheaper transactions, and more. This section introduces the ThreeFold_Token and how it supports a truly decentralized Internet for all.
What is TFT?
ThreeFold_Token is the utility token of the ThreeFold_Grid. First minted in 2017 on ThreeFold's Rivine blockchain, TFT is a utility token that allows holders to use the ThreeFold Grid's Internet capacity to store their data and build applications.
All transactions on the ThreeFold Blockchain are payable in TFT. TFT has a limited supply of 4 Billion tokens, and ThreeFold conducts burning upon the utilization of Internet capacity as a deflationary measure. Burning will increase proportionally to the utilization of the ThreeFold Grid.
Apart from providing Internet capacity discounts and enabling transactions, TFT also rewards people and organizations for farming Internet capacity on the ThreeFold Grid.
What can TFT do?
The ThreeFold_Token is the first utility token in the world that gives access to decentralized Internet (compute, storage and network) capacity. Users, developers, and enterprises use TFT to store data, build applications, and create peer-to-peer ecosystems on the ThreeFold Grid.
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But TFT is much more than that. It energizes the ThreeFold Grid and the expansion of a truly decentralized Internet that can scale any current or future technologies to the far edges of our world.
Where do TFTs come from?
TFTs are created (minted) by the ThreeFold Blockchain (TFChain) only when new Internet capacity is added to the ThreeFold Grid by farmers.
Every month, the consensus mechansim proof-of-capacity registers blocks on the blockchain, each block representing the record of Internet capacity provided to the network. When successfully verified by proof-of-capacity, farmers earn TFT according to the amount of Internet capacity they provided that is registered on TFChain.
A circular token economy
The ThreeFold Grid is the driving force of the next evolution of the Internet, as it enables tokenized economic interactions without intermediaries. It provides a unique set of data, a universal state layer, also referred to as the ledger, which is collectively managed by a network of trusted nodes. This unique state layer allows people to exchange information and value in a peer to peer (P2P) way.
The ThreeFold Grid was designed to create a circular peer-to-peer Internet economy as described below:
- Farmers connect 3Nodes and add Internet capacity to the ThreeFold_Grid. By doing so, new TFTs are farmed (minted) to reward their contribution to the network.
- Farmers can exchange TFT to other fiat or digital currencies on exchange platforms, and ThreeFold Grid users can exchange fiat or digital currencies.
- With TFT, users can use decentralized Internet capacity and/or applications on the ThreeFold Grid, a process called proof-of-utilization.
By holding ThreeFold_Token in their wallets, users resuce the circulating supply to have a positive impact on the value of TFT, and in doing so they earn discounts on their utilization of Internet capacity. Many TFT users hold on to their TFT with the expectation of an increase in value.
The ThreeFold_Token economy was also designed to have the necessary deflationary measures in place to incentivize the long-term growth of the ecosystem. A burning mechanism was set upon the ulilization of Internet capacity as a deflationary measure. When using Internet capacity, 35% of the transaction value is burned to reduce the circulating supply. This ensures that there's always room to farm new TFTs while also ensuring scarcity in the token economy.
Note: With partnership developments, ThreeFold is looking at ways for the ThreeFold community to be able to donate ThreeFold_Token to global projects that aim to improve the lives of people and regenerate our planet.
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