Today, the blockchain space is flooded with as many as 22,000 coins and tokens and for several months now, the market has been struggling at large with some coins even collapsing. A thorough shakeout could expose those tokens and coins purely focused on making quick profits and creating hype, and mitigate pump-and-dump schemes. Now’s the time for projects like us to shine – projects with tokens that serve a higher purpose and come with sound tokenomics.
🔗TFT – An Accessible Utility Token
We’re an Internet infrastructure project building the Internet of Internets together with a growing community around the world. So, TFT is not just any token. TFT is our native utility token, and as such, is backed by the continuous growth of the ThreeFold Grid.
Generally speaking, utility tokens are created to give digital access to specific products or services. While they do provide value in different ways, they cannot be considered “money” as directly as coins can be.
As the utility token and medium of exchange of the ThreeFold Grid, TFT represents Internet capacity. It supports a truly decentralized Internet for all and is leveraged to access and scale our open-source peer-to-peer Internet infrastructure. TFT is and will remain our main token, it’s our global currency. In a nutshell, TFT is our way of incentivizing an open ecosystem where anyone can connect and utilize Internet capacity without any intermediaries.
We’ve made a lot of progress in making the ThreeFold Token more accessible and in creating a healthy financial ecosystem for it. Moreover, the team is building our own DeFi solutions. You can learn more about our efforts towards providing a native financial system for the Internet of Internets here.
If you’re new to ThreeFold, I recommend giving our “ThreeFold Token for Beginners” page a read.
🔗Limited Supply and Strong Scarcity Mechanisms
First of all, the supply of TFT is limited to a total number of 4 billion. New TFT are only minted when new Internet capacity is added to the ThreeFold Grid – we call this process of connecting capacity farming. The tokens are minted using our so-called Proof of Capacity algorithm. We’re also exploring the possibility of providing farmers with booster rewards for certain achievements in areas like reliability and uptime, quality of bandwidth, level of utilization.
In line with our planet-first people-first philosophy, we’ve implemented a Voluntary Carbon Credits system in the PoC algorithm, so every 3Node mints additional TFT to offset its own carbon emissions, as outlined here.
To incentivize the long-term growth of the ecosystem, a burning mechanism permanently removes TFT from the circulating supply, as this ensures scarcity and continuous farming rewards. Burning will increase proportionally as the utilization of the Grid grows, ensuring the amount of TFT in the market is limited and leading to a healthy economic system.
Also, many existing token holders expressed their confidence and support by vesting their TFT in 2021, further limiting the number of TFT circulating. Moreover, chances are that a growing number of token owners will hold onto their TFT – because they expect the token to rise in value – which will increase scarcity. Ultimately, TFT has the potential to become a valuable commodity, offering a more reliable alternative to other digital currencies like Bitcoin. The hoarding of TFT means that these tokens won’t be available to be used on the Grid, additionally reducing the amount of available TFT.
And there are more factors potentially reinforcing scarcity. Staking is the mechanism to let the community invest and benefit from the growth of the Grid. Once the validator nodes can be deployed, validator owners and community members will be able to stake TFT on the validators which will secure the blockchain. To unlock voting rights and rewards, a certain amount of TFT has to be staked. Eventually, rewards for the validator owners could account for up to 50% of the TFT supply.
The combination of the token’s scarcity mechanisms with our staking and validator programs will lead to an increased scarcity of TFT on the market – which, in turn, will allow our future DeFi solutions to sell TFT at a higher value.
🔗TFT’s Role for the Internet of Internets
We don’t believe in hype or speculation, and we don’t spend any of our scarce resources on supporting speculation. We believe in the Internet of Internets which will interconnect us all, while providing us with digital sovereignty, privacy and meaningful experiences. We believe in the organic and sustainable growth of ThreeFold Token and the Internet of Internets vision.
Along with building community-owned Internets, our ecosystem is reimagining education, business, governance and more for a fair, inclusive and regenerative future – opening up a new world of possibilities. And in order to connect such an ecosystem of Internets, a healthy and fair financial system with a strong, stable currency is key.
As the glocal concept will be rolled out, the ThreeFold Token will unfold its potential and flourish. The Internet of Internets empowers people to build their own regional Internet infrastructures and will become a huge stimulator for the TFT economy. Every Regional Internet will have its own self-sustaining liquidity pool, validators, and regional digital currencies – with TFT acting as the reserve currency of the entire decentralized system. It is the currency needed to transfer between all the different Regional Internets via liquidity pools. TFT is also the currency of the main ThreeFold Blockchain.
Catch a glimpse of the future of the TFT ecosystem to learn more!
🔗The Internet of Internets as a Catalyst for Token Growth
ThreeFold is not only for believers in open source and decentralization. ThreeFold, and TFT, are needed. TFT is much more than a simple token. It energizes the ThreeFold Grid and the expansion of a truly decentralized Internet. There are many new ecosystem developments, tech advancements and building blocks for the Internet of Internets happening all around.
The realization of the Internet of Internets combined with the previously mentioned burning and scarcity mechanisms will trigger basic supply-and-demand mechanisms. The limited token supply will meet a rising demand for TFT. The token will be needed to buy and reserve current or future Internet capacity and services on our Grid as well as for driving the rollout and expansion of the Internet of Internets – establishing the global Internets of Internets alone will require billions of TFT. In addition to that, TFT will be needed to access the FreeFlow Twin (formerly known as Uhuru) and to deploy workloads on the Grid, e.g. through weblets on the TF Playground. All in all, there will be a natural economic demand for TFT.
For farmers, developers and community members looking to build a better world, there has never been a better time to join the movement and take action. This is an exciting time to be part of the global ThreeFold community.
Please note that the ThreeFold Token (TFT) is not an investment instrument. TFT represents IT capacity on the ThreeFold Grid, farmers create TFT, developers use TFT. Also, this is not investment advice, everyone is free to make their own choices. So, do your own research and read our disclaimer.