www_docs_threefold_io/docs_website/docs/litepaper.md

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# Litepaper

> *ThreeFold presents Project Mycelium, a self-healing data, network and cloud Internet insfrastructure laying the foundation for Web4.*

# ![|640x456.89972513675843](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdxe-bOae_qPzz_eHjjwqFVwD7KbOHXq_cG_3QuslDjZPrkKkAQGWbfxH3U1X27zBthn6DYRpqoDuQv4ufx5sp9YBP68_vZgAzT0YlaO4PaW-Uu2E2vlKW4v4cs9SgoM4dIYhdCOw?key=FFljbee7w6SKHobQaUuiib21)

## ThreeFold - Web4 Launch

The Internet today has major problems: it’s less reliable than we think, spreads misinformation, lacks privacy and security, leaves 50% of the world poorly connected, and allows big tech to monitor and influence us. Ultimately, it enables the powerful to become even more powerful.

Web 4 is the next generation of the Internet. ThreeFold has been working on it for +10 years, with over $50 million in investment and more than 50,000 active virtual CPUs

![|640x293](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdNNTGVeG1j26ppP0dObnoc1C5isGKfnHP3z69DsQoHrmrythWCVC-MbOjdOwq6SYU4K3oU5iPueM3uWHT9Gc2fZ6rrJiUXd-1Ilb51Wf-hURuivLiWOezUh82A6W35q7N5yfcDcw?key=FFljbee7w6SKHobQaUuiib21)

Web 4 represents the natural evolution of the Internet, where humans and artificial intelligence collaborate to develop a new paradigm focused on [Augmented Collective Intelligence,](https://www.supermind.design/) aimed at advancing planetary well-being while making sure everyone has equal chances.

## Mission

Our Mission is to create the best possible infrastructure layer for [Web 4.0](https://www.techopedia.com/definition/web4) with following benefits:

* Sovereignty for countries, communities and people
  * Data close to the users (in our own countries, no need to build datacenters)
  * Data is ours and managed by us, we decide with who our data is shared and how it's used.
* Privacy & Security
  * The cyber pandemic is real, a new approach is needed to protect our digital life.
* Reliability
  * The current Internet is fragile and quite some algorithms used are outdated and not good enough for web4. Better alternatives are needed.
* Limit Centralization and Provide more Equality
  * Half of the world doesn’t have access to decent Internet

## Web4 Benefits to All

Web4 allows “everyone everywhere” to:

* Communicate, end-to-end encrypted across any link or medium, automatically finding the shortest path, even in disaster scenarios, ensuring messages remain private and unalterable.
* Securely share and store information with ease, scaling from one person to billions.
* Participate in private secure online meetings (video, voice, etc.).
* Publish content under a unique, decentralized domain name.
* Restore authenticity and determine which information can be trusted.
* Discover, analyze & find information with the help of a personal AI assistant
* Keep track of all interactions with your friends and leverage a personal AI to simplify your life.
* Develop apps for your community up to 10x faster than traditional systems.
* Pay a lot less than what you would do with existing systems.

And soooo much more…

## Our Web4 Implementation

ThreeFold delivers the plumbing layer for a better Internet which has the potential to achieve [Augmented Collective Intelligence](https://www.supermind.design/). Together with our partners we have all required parts to make it happen.

**Personal Level**

* Agent Layer: every person owns a Personal Digital Assistant, managing their digital life.
* Identity Layer: strong reputation management, proof of authenticity, a global name system.
* Intelligence Layer: decentralized, personal AI systems for collaboration & augmented intelligence.
* Transaction Layer: fully integrated with Web3 systems and beyond e.g. mutual credit, …

**Infrastructure Level**

* Network Layer: redesign of how communication happens, private, more scalable, …
* Data Layer: redesign of how we share, distribute and store data
* Serverless Compute Layer: allow code to run close to where participants and data are.
* Cloud Layer: run VM’s, Containers as part of ecosystem (compatibility layer with Web2)

**Physical Level**

* Routers: route between old and new web, create new secure communication channels.
* Nodes: deliver AI, Data, Compute to the ecosystem
* Phones: our personal device, capable of building a meshed network, offline support with catchup.
* Desktops: any current linux, windows, osx desktop seamlessly integrates

## A Unique Project

To our knowledge, we are the world’s first project approaching a fully functional Web4 infrastructure that places priority on both the planet and people. Over the past decade, we’ve tackled complex challenges in areas such as data storage, secure overlay networking, and autonomous cloud security to bring this vision to life.

## It’s Happening Now

* A group of people have made it their life's work to resolve this problem in a fundamental way.
* This team, with 6 M&A exits to date, have established +5 world records and have in an opensource, transparent movement demonstrated that an Autonomous Cloud can be created
(now comprising 30,000 vcpu’s across 60 countries, …)
* Among other highlights, this team has achieved good traction in East Africa, where governments have announced public support and first agreements have been signed, including for the establishment of a digital global freezone.
* The DEPIN movement (Decentralized Physical infrastructure), in which we are a participant, is a promising movement but is still in its infancy, it might be a good way to expand faster and provide liquidity and an ecosystem for the participants..

## Status

![|640x333](https://lh7-rt.googleusercontent.com/docsz/AD_4nXewbsf_eTGjwbxde2W_A6azMhJjbDCTShgl3WRLXKDuB4_GiFiI6uBBC4x3rRRvW027qeACd1zm0MOYEFt6-SV2VTi4o884OLg57x6x1RnEbt_VA8EO5Jd4GPBS51Fzhlinhgn5WQ?key=FFljbee7w6SKHobQaUuiib21)

The base layer network of capacity is active, the technology is working in generation 3,
Read the [ThreeFold V3 Manual](https://manual.grid.tf/) to learn more about the ThreeFold Grid active in +50 countries.

## Public Launch

Our Web4 launch is the next phase in the evolution of ThreeFold, born from a $50 million USD investment by its founders and community. We are now ready to take the project to the next level.

The official announcement will be made on December 12, 2024.

## Team

Our team has built some of the world’s most advanced Internet and cloud technologies that were later acquired by some of the biggest names in the space for a cumulative +USD 600 million and +44% IRR for our investors.

![|640x311](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfsOHWMsZ9ZheQtpAU1IXSgaLmGgA-oeBHwzSaZk27eq23f0PQnFY9SF9BRP4jnMnCzfZhsKUJmWopU-0iq76qaYyQqdDTc3_qAzyour5HzZoIMzFPc0Z2lVV3Qq6oJLLz7mOiuJQ?key=FFljbee7w6SKHobQaUuiib21)

## Actionable Items 12-12-24

ThreeFold launches December 12, 2024, the following will be possible.

**Buy a Hero**

A Hero is your personal digital assistant, managing your digital life and enabling participation in the ThreeFold Grid. You also have the option to register your Hero in a Digital Freezone which gives you financial and legal independence (10 USD / month, 20 USD with Digital Freezone).

**Buy a ThreeFold Phone**

Become part of the ThreeFold Grid by buying a ThreeFold Phone. Right now pricing starts at 500 EUR, in the future there will be other versions with less hardware specifications and lower cost.

**Become a Farming Pool**

Build a community of Farmers, help them to get started, help them to acquire nodes and routers, define the rules for the farming pool (uptime, pricing levels, …)

**Become a Node or Network Farmer**

Register with a Farming pool and buy a Node or Router and host it in a chosen location. You will be rewarded INCA-G tokens for doing so.

**Become a Developer on top of the ThreeFold Grid, or learn more about the Internals**

Register for the first Hero Development Conference in Zanzibar (which is our HQ) which will be held in late January 2025. We will show how any application can be developed with up to 10x less effort and leading to ultimate reliability, security and scale. Escape the winter and learn about web 4.0 and how it can help you develop your future. Hurry to register, limited number of active participants (25). More of these conferences will be held in multiple spaces around the world in 2025.

## Actionable Items Q1 2025

**Become a INCA Token Owner (this will not be on website, is only through the network)**

The ThreeFold Cooperative is selling 2m EUR worth of INCA (comes from conversion of existing TFT) at 0.05 EUR per INCA. Register your interest and mention the amount of INCA you want to acquire.
The first draw will happen 12-12-2024 or earlier if max reached. The price might change after that date.
The INCA launching price will be 0.1 EUR starting Jan 1-1-2025.

This is implemented as a smart contract, min amount is 10k EUR max 100k EUR. The INCA will unlock with accelerated vesting (12 months cliff, 12 months unlock, acceleration in line to the price of INCA). The INCA tokens can be used for utilization on ThreeFold Grid without any limits at any time.

**Become an INCA Owner if you are already a TFT holder**

Convert your TFT into INCA, 1-1, your INCA’s will have the same properties as mentioned above.
Do note that the timing of your conversion gives you priority in liquidity events on the Liquidity Pool.

## Concepts

**Hero**

* A personal digital assistant (agent) designed to manage and enhance every aspect of digital life, putting users in full control of their data with robust protections against data loss.
* This assistant offers a comprehensive suite of tools: Chat, AI-powered assistance, Calendar, Task and Project Management, Video Meetings, Web Publishing, Education, Collaboration, Digital Currencies, News, and more.

**ThreeFold Grid & Cloud**

* An ultra secure network of network, data and cloud capabilities.
* Network:
  * always on, unbreakable network layer running on top of any Internet connection or even peer2peer physical connections (wifi, bluetooth, lorawan, LTE, …)
  * ThreeFold Grid Agents exist for Desktop and Mobile devices.
  * A shortest path will always be found between participants
  * Each network participant has a unique IP v6 address
  * All communication is end2end encrypted, no possibility to intercept.
* Cloud
  * AI, Compute, Storage nodes deployed and owned by the community.
  * The Hero Agents use compute, AI, storage capacity from these nodes.

**Mobile Hero on the ThreeFold Phone**

* A secure phone, with a secure Operating System
* Your Hero can run on the ThreeFold Phone.
* Each phone is an active node in the ThreeFold Grid.
* The smallest phone will cost less than 100 EUR.

* Works online and offline and can sync or catch up over low bandwidth connections

**Cloud Hero**

* Your Hero who runs on top of the secure ThreeFold Cloud.
* The Cloud Hero knows how to keep your data forever so it can never be hacked or lost.

**ThreeFold Cooperative**

* See above

**Digital FreeZone**

* A secure regulated special economic Zone with full sovereignty and dispute resolution.
* Each Hero Owner can be a Resident in the Digital FreeZone.
* Such A Resident is a Legal Entity (sovereign) and can own assets, money,
collaborate, make agreements, sign contracts, do business …

**INCA**

* The digital currency as used inside the ThreeFold Ecosystem

**INCA-G**

* A generative token, which generates INCA tokens in line to specifications as attached to the INCA-G Token.

**GLD**

* Gold token linked to physical gold, used as Digital Currency in the Digital FreeZone

**Organic Liquidity Pool**

* A better type of liquidity pool which aligns interest of investors and other participants.
* There is more safety inside and flexibility in how rules are defined around liquidity providing.

## INCA Tokens

INCA is the logical continuation of TF for the ThreeFold which is ThreeFold + much more.

Special:

* Everyone can convert from TFT to INCA, the timing in which is done will give them priority in liquidity on the Organic Liquidity Pool (see below). This conversion happens into the Liquidity Pool.

**INCA Protection**

* Maximum 4 billion INCA
* Organic Liquidity Pool Concept in a Digital Freezone
  * Organic Fair way in how to provide liquidity and merge the interests of Investors with the community.
  * The Digital Freezone operational digital currency = GOLD (this is the in/out way)
  * The GOLD linked to physical gold, can be bought using credit cards, debit, fiat, …
* There will be a INCA-G which is a generator token
  * implemented as NFT with certain properties.
  * time of vesting, …
  * vesting can be related to price of INCA, or other criteria e.g. size of grid, …
  * The INCA-G can be traded (transferred between users)
  * INCA cannot be traded/transferred for a TBD period of time. All trades at start happen over the Organic Liquidity Pool.
* We should consider if there is a need for Centralized Exchanges, Marketmakers, and if when to use them. A lot of care needs to be taken in how to approach this.
* We will promote a secondary market for INCA-G

**INCA Tokens are a real Utility**

* INCA can be earned by hosting ThreeFold Nodes & Routers
* INCA can be earned by executing on tasks which really matter for ThreeFold
* INCA can be spent for the services on the ThreeFold Grid

## INCA Rewards

INCA Rewards are done (always done as INCA-G) on a project per project basis and are defined by the ThreeFold Cooperative.The projects need to be accepted, per project we define specs of the INCA-G, deliverables & mission of the project, governance, etc.

Project Types:

* Farming (promote communities to put capacity in e.g. regions which need it most)
* Promotion Activities
* Development Activities
* Etc.

## Cooperatives

We believe Cooperatives are the best form to organize a project like this.

The ThreeFold Cooperative will be launched as soon as possible in the Digital FreeZone.

The Cooperative will own the following tasks:

* Protect the interests of the members
* Own the process for developing the project further from technical, promotion and expansion view.
* Manage the voting process and governance in general.
* Build a network of experts who can train trainers.
* Coordinate & Collaborate with partners, build an ecosystem.
* Define the products & services we as a community need.
* Manage the treasury,

The Cooperative helps establish Farming pools, which aggregate farmers.

![|640x109](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfBj2pGTpls8k9gpi-wlcdBU7iOOnJwzov7irf46UaPq4N1IWS17RjT4bBNgVrPOlynZB5N8Ft6fs0BWhqSG65QJWT5TUucaXBer6yV5AfV-YeRo0VX-g2chWsc0lcPQfA5zkLjiBxX0Z-MDcuxkNjF6jdn?key=FFljbee7w6SKHobQaUuiib21)

This structure leads to good governance and lots of decentralization.

![|640x81](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdIA9KX1LWEDUIldARtcPY3pfTnIWWOX2Bh-ujqAnejV--lxzGQJD3y4NTTOURAgZ4gi3lf9xfJoWhTRGK7yjvO5oS535AdMX_593IoEDxXg5ntDYPUGX-wEjQK8iv9VLP2ZCMXe53WeuySP4l3T44QP2mm?key=FFljbee7w6SKHobQaUuiib21)

Each farmer owns one of more Nodes or Routers and provides service in line to the specifications as defined on Farming Pool level. The Farmer earns rewards by providing capacity and gets a serious revenue cut from people paying for the services which run on top of their nodes & routers.

![|640x107](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfX2jDNfu_RZSVJruY-8sDvJMCOxi1zoPN3T56qEUf-ofYtET9B6ouOFD3qSiHwV4PyyadKJ8FiWKeq4aI-jOf7ptJ21rS9HruD5eIpFx8VE1zey_HxZU5C8olPDb6mHKV3UPuApLt07KR4867JxJDzKbJR?key=FFljbee7w6SKHobQaUuiib21)

The ThreeFold Cooperative motivates different technical parties to run validators, which are our blockchain nodes which run our governance and reputation systems optionally some financial functions.

There will be contractual agreements in place between all participants to make sure it's transparent and understood by everyone what the nature of the relationships are.

The Validators earn INCA-G rewards.

Please note our Validator network is unique and runs on top of the ThreeFold Grid which means it should have high reliability and is only used for functions where a blockchain concept is really needed.

## The Internet as Hope for Humanity

At ThreeFold, we believe that the Internet represents an amazing opportunity that brings hope for humanity. We envision a world where we can all own our AI, data and Internet. This world is within reach and we are building it as we speak. We invite everyone to join the ThreeFold ecoystem and to collaborate as they feel inspired.

We think that it is possible to collectively build and improve the internet so as it unlocks its unlimited potential to humanity. 

We envision the internet as a freeflow of authentic information, connecting everyone where, unlocking the unlimited potential of humanity.