Using locked farming rewards to reserve capacity or as validator stake

#1

James on Telegram writes:

I have a suggestion regarding the locked tft rewards for farmers. I’m hoping an exception be established that the locked tft could be used by the farmer to reinvest into the threefold network. I will want to run a presearch node on my 3node for example. I’d rather just have one piece of hardware at my house as opposed to setting up another server to run presearch separately. I have a feeling many of us other farmers would want to do the same. It would boost activity and keep the tft circulating within the grid. Alternatively and perhaps an even better idea is having the hosting cost deducted from farming rewards paid.

My reply:

Farmers who use their own capacity would specify themselves as the sales channel and get some of the spent TFT back. In this case, that amount could remain locked, while the portions that are burned, allocated to the foundation, and put into the PoS pool could move immediately. This would indeed serve to support the network while keeping with the spirit of the lockup.

Technically speaking, this seems pretty feasible. TF Chain can check that the twin deploying the workload is the same twin that owns the farm.

M P also asks:

I agree this is a nice suggestion. In the same vein, I was thinking the tokens farmed could be used to run a validator node. Could this be asked to the team too? This would give an incentive to farmers to add more nodes in order to have 100 000 tokens by the end of 2022, if their tokens are not locked for validator nodes.

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Suggestion to create a simulator to calculate validator ROI?
#2

indeed, the plan is to allow farmers to host on their own node(s) and only have to pay the burning + 5% for validators, in case you have a lot of tokens it means you can get an additional 40%-60% discount, this means that its super cost effective to use your own capacity, for early farmers I think you would still farm more tokens compared to what it costs to use the capacity.

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#3

The issue, of course, is that farmers who utilize their entire capacity don’t bring any extra value to the Grid. This isn’t an immediate issue, because it costs more to utilize an entire node than it generates in farming rewards, in the beginning. However, assuming token price increases (meaning fewer TFT are needed to pay for same capacity) and with staking discounts at play, it could be possible for a farmer to use all of their capacity and still make a profit from farming.

Potential mitigations to this are complicated by the fact that deployments could be made from any account, specifying the farmer as the sales channel. There’s no way to distinguish the farmer from customers which the farmer has referred, as far as I can see.

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