ThreeFold Token Overview

#1

ThreeFold Token Overview

Table of Contents

Introduction to TFT

ThreeFold tokens, or TFTs, are exclusively generated when new capacity is added to the TF Grid. There are no centralized issuers. Tokens have not been created out of thin air.

While the ThreeFold Grid can expand, a maximum of 1 billion TFTs can ever be in circulation. This limit ensures stability of value and incentivization for all stakeholders.

TFT lives on the Stellar Blockchain. TFT holders benefit from a big ecosystem of proven wallets and mediums of exchange.

By employing Stellar technology, TFT transactions and smart contracts are powered by one of the most energy-efficient blockchains available. Furthermore, TFT is the medium of exchange on the greenest internet network in the world. The market for farming, cultivating and trading TFT is open to all.

Anyone with internet connection, power supply and necessary hardware can become a Farmer or trade ThreeFold tokens (TFT).

By farming, buying, holding, and utilizing ThreeFold Tokens, you are actively supporting the expansion of the ThreeFold Grid and its use cases — creating a more sustainable, fair, and equally accessible Internet.

Proof-of-Capacity

ThreeFold uses proof-of-capacity to mint tokens. Since the genenis pool, all tokens that are being minted are the result of farming. Minting will stop during 2024, to keep the total amount of TFT at 1 billion, instead of the previously planned 4 billion. Read more about this here.

For more details, see Proof of Capacity

Proof-of-Utilization

TFT is used on the TFGrid to purchase network, compute and storage resources through the proof-of-utilization protocol.

Proof-of-Utility Distribution Flow

1386Ă—740

For more details, see Proof-of-Utilization

TFT Distribution

The current supply distribution of TFT is as follows:

Current Supply Distribution Qty (Millions)
Farming rewards (as of 02-24 minting) 290
Ecosystem Grants 22
Promotion & Marketing Effort 100
Ecosystem Contribution, Liquidity Exchanges 40
Technology Acquisition + Starting Team 290
Advisors, Founders & Team 241
Current supply 983

The supply distribution of TFT is as follows:

Supply Distribution Qty (Millions)
Current supply 983
Illiquid Supply 66.5
Circulating supply 916.5
Maximum supply 1000

TFT Marketcap and Market Price

The TFT market price and marketcap are as follows:

Description Value
TFT Market Price 0.048 USD
TFT Market Cap 43,992,000 USD

Note: The values here are subject to change. Check the current market conditions.

Complemetary Information

Disclaimer

Important Note: The ThreeFold Token (TFT) is not an investment instrument. TFTs represent IT capacity on the ThreeFold Grid, farmers create TFT, developers use TFT.

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#2

Great post, and thank you @Mik.

Since we are getting a lot of questions around the market cap of TFT, I wanted to write a bit more about the various forms that TFT exists in today. When we talk about market cap, that’s usually referring to a formula like this:

token price * circulating supply

or for “fully diluted” market cap, it would be:

token price * total supply

But what is “circulating supply”? We are also getting a lot of questions lately about how many TFT are circulating. Generally this is more or less synonymous with “liquid supply” and refers to tokens that are “on the market”. Non circulating or illiquid tokens are those that are somehow locked, such as being staked or on a vesting schedule.

For the purposes of the numbers @Mik wrote above, we have only included tokens in a set of wallets controlled by the ThreeFold foundation as illiquid. The foundation also has some liquid wallets that are used for a limited scope of spending, namely paying rewards and grants, including to contributors, farmers, and testers of the technology.

Tokens off the market, for now

There are, however, a few other categories of TFT that one might consider to be non circulating. I’ll list them all and then describe each in more detail:

  • TFT held in liquid foundation wallets
  • TFT remaining on the original ThreeFold blockchain, Rivine
  • The placeholder TFTA token
  • Voluntarily vested TFT

In the last three cases, these are tokens that individuals can choose to bring into the market at any time by taking some action to convert or unlock them. For now, they are choosing to leave their funds in a non tradeable form. Everyone can make their own conclusion around what kind of signal this is toward the market and whether these tokens are really circulating.

Liquid foundation wallets

40M

While the liquid wallets can be used for the purposes described above, these tokens will never enter the market all at once. Rewards and grants are paid at a relatively stable rate.

As mentioned above, we will switch to paying our service provider from treasury funds (that is, foundation wallets) soon. This can increase the rate that these tokens enter the market, but at the same time an equal number of tokens will no longer be minted.

Rivine TFT

43M

The original ThreeFold blockchain was called Rivine and was retired when TFT was moved to Stellar. Holders of Rivine TFT have the option to migrate their tokens to Stellar at any time. So far most TFT has been migrated, but a significant number remain.

TFTA

53M

When TFT was moved to Stellar, a placeholder token called TFTA was used for a period of time to reward farmers. Although TFTA have always been transferable, they were not originally redeemable for TFT until certain conditions were met. For some time TFTA have been freely convertible to TFT, but many have not been converted.

Vested TFT

86M

The vesting program allowed TFT holders to voluntarily lock their tokens, with the intention that they would be unlocked once the price reached certain levels. We decided to give all vesters the ability to unlock their tokens in anticipation of opening a staking program for TFT. Many have not yet unvested their tokens.

Conclusion

Summing the figures above, we can see that there are about 222M TFT, or about 22% or the total supply that are in various “less liquid” forms. Again, I’ll leave it to the reader to decide if these tokens belong in their own calculation of the TFT market cap, but I hope to have shown that there’s a bit more to consider when assessing the liquid or circulating supply of TFT.

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