ThreeFold DAO Rules for Proof-of-Capacity

Table of Contents

Note: The proof-of-capacity DAO rules will be updated for the next 3.14 grid release. Stay tuned.


  • The CU/SU reward gets expressed in TFT and registered in TFChain at 3Node registration time
    • For certified Nodes, the CU/SU reward was specified at sales/promotion time, this process is managed by ThreeFold Tech.
  • CU/SU rewards are calculated from Resource Units
    • Certified Node gets 25% more farming rewards
    • TFT pricing is pegged to USD (pricing changes in line with TFT/USD rate)
  • Rewards for NU and IP Addresses are dynamic
    • The TFChain tracks capacity utilization and as such the reward can be calculated for the Farmer
  • All Internet capacity farmed is rewarded on a monthly basis according to minimum service level agreements
    • Minimum SLA = Service Level Agreement (see special section about SLA) needs to be achieved before TFT can be rewarded

Technical Farming Requirements

  • Make sure you have 50GB SSD capacity min available per logical core (physical core times number of threads it can run), if not your calculated CU will be lower.
  • Make sure your network connection is good enough, in future it will be measured and part of the Service Level Agreement.

Minimum requirement Service Level Agreement (SLA)

Minimal SLA's need to be achieved before the farming reward can be earned (uptime, bandwidth, latency, ...). This is not yet fully implemented.

More service levels agreements will be required, the DAO will decide on those changes. Requests can be made by everyone by means of GEP.

Some Ideas

  • minimal uptime
  • minimal bandwidth requirement
  • minimal network latency requirement
  • minimal distance between Certified Nodes for the super node concept
  • different uptime requirement for Certified vs DIY nodes

If SLA (Service Level Agreement) was not achieved for 3 consecutive months, then the 3Node will have to re-register which means the CU/SU reward will be recalculated at that time and re-registered in TFChain for that node, just like a new one.

Important Information around TFT USD Price Used at Registration

This is for mainnet TFGrid 3.0:

  • The TFT USD price used at 3Node registration at launch of mainnet is hardcoded in TFChain 3.0 at 0.08 USD per TFT (TFChain 3.0 as used in Jan 2022).
  • Once the DAO is life, a new price will be approved by the DAO voters. Idea is to have this price re-visited more or less once a month, if needed faster.
  • The TFT USD price used at 3Node registration is defined by the TFDAO at least once a month by means of GEP.

Suggested: improvements to proof-of-capacity

Suggestions will be made to improve PoC, the DAO will have to come to consensus before changes can be made.

  • How to deal with a situation where a 3node adds or removes compute or storage capacity.
  • ThreeFold is developing a way of how to detect possible fraud on PoC using TPM chip and dynamic generated code to execute random PoC checks.
  • If PoC finds fraud e.g. trying to fake Internet capacity provided, the 3Node will be disabled automatically by Zero-OS and flagged as fraudulant. The Farmer will then have to re-register with a lower reputation for transparancy to the ecosystem. If TFTs are staked at that time, they will be locked permanently.
  • How to improve the calculation of CU rewards to mitigate the difference in power provided between new and old hardware.

TFGrid is a DAO

  • All of above information is public and can be see by everone of the community as per 3Node and Farmer (part of TFChain).
  • Farming rewards methodology can and probably will get revised if the community wants this, DAO consensus needs to be achieved before changes can happen, this happens by means of a GEP.

Grid Enhancement Proposal

  • Changes to above described mechanism or any other change request for the TFGrid is managed by grid enhancement proposals (GEP).
  • Because we are a DAO, everything is open for change as long as consensus of community in accordance of TFDAO has been achieved.
Last change: 2024-03-21