The farming rewards have been designed by the ThreeFold Foundation in a way to ensure a fair reward while also incentivizing the right actors for the future growth of the ThreeFold Grid.
The amount of TFT farmed by a 3Node depends on the compute and storage capacity made available to the ThreeFold Grid.
There are three forms of rewards in ThreeFold’s Farming model with Grid 3.0 launched in Q3 2021:
- Farming Rewards: Once booted by ThreeFold’s operating system, the 3Node’s Internet capacity will be verified and added to the network. Farmers earn TFT monthly for keeping the capacity online.
- Cultivation Rewards: When users reserve capacity on the ThreeFold Grid to store their data or run their applications.
The reward mechanism for cultivation goes as follows:
- 10% of the utilization fee is rewarded to Farmers.
- 25% gets burnt to ensure scarcity of TFT in the new Internet economy.
- 5% goes to the Foundation for promotional purposes.
- 60% is used to reward the sales channels, incentivizing direct or indirect sales agents to promote the usage of the Threefold Grid capacity.
Of course, if the Farmer sells the capacity of their 3Nodes, they will benefit from the sales channel reward on top of the utilization reward. The profitability of Farming all depends on how much capacity you will connect as well as the market price of TFT.