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TFT Minting Transition Plan

Welcome to the TFT Minting Transition Plan community e-book. This document outlines the proposed changes to the ThreeFold Token (TFT) minting system and introduces a new liquidity framework designed to create sustainable value for all participants.

Purpose​

This plan is a living document created to:

  • Share the proposed token economics and liquidity mechanisms
  • Acknowledge areas that still need refinement
  • Invite community feedback and discussion
  • Foster transparent collaboration on the future of ThreeFold's token system

What This Plan Covers​

The transition plan introduces several interconnected concepts:

  • Implementation Status & Roadmap: Current progress on marketplace features, infrastructure, and timeline
  • Dual Token System: TFT as a tradable asset and Cloud Credits (CC) as a stable utility token
  • Position-Based Liquidity Pools: A fair, time-weighted approach to rewarding contributors
  • Dutch Auction Exit Mechanism: Controlled, sustainable liquidity with built-in protections
  • Yin-Yang Currency Philosophy: Balancing market efficiency with community cooperation
  • Node Economics & Pricing: Detailed specifications, income projections, and ThreeFold's capacity commitments
Work in Progress

This plan represents our current thinking but is not finalized. We are actively seeking community input to refine and improve these mechanisms.

Open Questions & Gaps​

We acknowledge there are still important decisions to be made and gaps to fill. Your feedback on these issues is particularly valuable:

Key Areas We're Seeking Feedback On:​

  • Entry Price: Should the fixed TFT to CC conversion rate be $0.05 or $0.01 per TFT?
  • Peg Currency: Should Cloud Credits be pegged to gold (1/1000 gram) or USD?
  • Liquidity Pool Parameters:
    • What should the maximum exit percentage per period be?
    • What minimum discount is appropriate for Dutch auction exits?
  • Gaming Prevention: Are there scenarios where the system could be exploited that we haven't addressed?
  • Farmer Liquidity: What's the right balance between stability and operational liquidity for farmers?
  • Migration Strategy: How should we transition from v3 to v4 in the fairest way possible?
  • Exit Restrictions: When TFT market price is low, what exit rules best protect the system while serving farmers?

How to Provide Feedback​

What Happens Next​

  1. Community Review: We want your feedback on the concepts, parameters, and any concerns you have
  2. Refinement: Based on input, we'll update and clarify the plan
  3. Community Call: Interactive session to discuss and answer questions
  4. Finalization: Incorporate feedback and prepare for implementation
  5. Migration: Clear timeline and process for moving from v3 to v4

How to Read This Documentation​

  • Implementation & Roadmap: See what's happening now and what's coming soon
  • Core Concepts: Understand the fundamental token and liquidity mechanisms
  • Node Economics: Explore farmer income models, pricing, and capacity commitments
  • Appendix: Meeting notes and detailed technical discussions for transparency
  • Operations: Technical documentation for deployment and maintenance
Get Started

Ready to dive in? Start with the Token System to understand the foundational architecture.

This is a community-driven initiative. Your participation helps shape the future of ThreeFold's token economics.