ThreeFold Points (TFP)
Understanding the value exchange system that powers the ThreeFold Marketplace.
Overview
ThreeFold Points (TFP) are the fundamental unit of value exchange within the ThreeFold Marketplace ecosystem. With a stable value of 0.1 USD per TFP, they facilitate transactions between providers and users of digital resources and services.
Key Concept
TFP represents a claim on resources and services within the ecosystem rather than being a speculative asset. It serves as a stable medium of exchange designed specifically for the ThreeFold Marketplace.
Core Principles
Value Exchange
TFP is generated when value is provided to the ecosystem by providers. Users acquire TFP which then circulates as a medium of exchange.
Stability
Designed to maintain relatively stable value to enable reliable economic planning within the ecosystem.
Stable Value
TFP maintains a consistent value of 0.1 USD, providing stability and predictability for marketplace participants.
Decentralization
No central authority controls the issuance or value of TFP; it's governed by system rules and community consensus.
Trust-Based
The system relies on reputation and verification mechanisms to ensure trustworthy participants.
Resource Representation
TFP directly represents real computing resources, bandwidth, and services in the ThreeFold ecosystem.
How TFP Works
Understanding the mechanics of the TFP system helps users navigate the marketplace effectively:
The TFP Exchange Cycle
- Generation & Provision: TFP is generated and credited to providers when they contribute resources to the grid (e.g., compute capacity, services). Users acquire TFP to access these resources.
- Exchange: TFP circulates within the ecosystem as users pay for resources and services
- Utilization: Resource users spend TFP to access computing capacity, applications, or services
- Transfer & Deduction: When resources are utilized, TFP is deducted from the user's account and transferred to the provider's account. Unused TFP remains in user/provider balances.
- Circulation & Supply: TFP continues to circulate within the ecosystem. The overall TFP supply is managed (e.g., through initial generation for providers and acquisition mechanisms like purchases and swaps from liquidity pools for users).
Understanding TFP Balances
Your TFP balance represents the amount of value you can exchange within the ThreeFold ecosystem. You can acquire TFP through direct purchase at the rate of 0.1 USD per TFP or by providing resources and services to the network. The more TFP you hold or stake, the greater your benefits within the ecosystem.
Account Types
The TFP system features different account types based on participant roles:
Provider Accounts
For resource and service providers:
- Typically maintain positive balances
- Earn TFP by offering resources/services
- Can spend earned TFP within ecosystem
- Subject to contribution verification
- Credit limits based on reputation and history
Examples: 3Node operators, application providers, service professionals
User Accounts
For users of resources and services:
- May maintain negative balances (credit)
- Spend TFP to access resources/services
- Can earn TFP by providing to the ecosystem
- Subject to credit limits and verification
- Usage patterns affect credit availability
Examples: Individuals, businesses, developers using grid resources
Hybrid Accounts
For participants with dual roles:
- Both provide and use resources
- Balance fluctuates based on net contribution
- Can offset consumption with contributions
- Subject to balanced contribution metrics
- Most common account type in the ecosystem
Examples: Developers who both build and use applications, businesses that provide and use services
TFP vs. Traditional Currencies
Understanding the differences between TFP and traditional currencies helps clarify its purpose and function:
| Characteristic | ThreeFold Points (TFP) | Traditional Currencies |
|---|---|---|
| Creation | Created when value is contributed to the ecosystem | Created through central bank issuance or fractional reserve banking |
| Supply | Dynamic; automatically adjusts to match available resources | Controlled by central authorities through monetary policy |
| Backing | Directly backed by real computing resources and services | Backed by government guarantee or market belief |
| Purpose | Specifically designed for resource exchange within the ThreeFold ecosystem | General-purpose medium of exchange for diverse goods and services |
| Stability | Designed for relative stability based on real resource value | Subject to inflation, deflation, and market forces |
| Accounts | Positive balances representing purchased or earned TFP | Typically only positive balances (negative requires loans) |
Using TFP in the Marketplace
TFP enables a wide range of transactions within the ThreeFold ecosystem:
Resource Transactions
- Pay for compute resources (slices)
- Purchase or sell 3Nodes
- Access Mycelium Gateway services
- Deploy and manage applications
Service Exchanges
- Hire technical expertise
- Purchase support packages
- Attend training sessions
- Commission custom development
System Functions
- Stake for enhanced reputation
- Participate in governance voting
- Allocate to sponsored initiatives
- Establish service level guarantees
Managing Your TFP
The ThreeFold Marketplace provides tools to effectively manage your TFP balance:
TFP Wallet Features
- Balance Dashboard: View your current TFP balance and transaction history
- Credit Management: Monitor available credit and credit limits
- Transaction Scheduling: Set up recurring payments for ongoing services
- Balance Notifications: Receive alerts for low balances or credit thresholds
- Analytics Tools: Track spending patterns and resource utilization
Best Practices
- Regular Monitoring: Check your TFP balance and transactions regularly
- Resource Planning: Estimate TFP needs based on planned resource usage
- Balance Maintenance: Aim for a balanced contribution-consumption ratio
- Security Measures: Protect your account with strong authentication
- Documentation: Keep records of major transactions and agreements
Credit Limits
Every account has a credit limit that determines how negative your balance can go. This limit is based on several factors including account age, verification level, and usage history. New accounts typically have lower credit limits that increase over time with positive account activities.
Governance and Evolution
The TFP system is designed to evolve through community governance:
Community Governance
Key parameters of the TFP system are governed by the ThreeFold community through transparent voting mechanisms. TFP holders can participate in decisions regarding credit limits, verification requirements, and system improvements.
Economic Model Evolution
The TFP economic model is designed to adapt to changing ecosystem needs. Parameter adjustments and feature additions are made based on real usage data and community feedback to ensure long-term sustainability.
Security Mechanisms
Multiple safeguards protect the integrity of the TFP system, including fraud detection algorithms, contribution verification processes, and regular security audits to ensure fair and proper functioning.
Transparency
The TFP system operates with full transparency. System rules, governance decisions, and aggregate economic statistics are publicly available to all participants to ensure trust and accountability.
Ready to Start Using TFP?
Access your TFP wallet to begin participating in the ThreeFold Marketplace economy.