Challenges in the TEA Token Economy Design

Roles in the TEA Ecosystem That Need to Be Addressed

  • Miners (or farmers): They buy or rent physical or virtual TEA mining machines. They earn reward from the execution of tasks the TEA consensus assigns to them. The reward are paid in TEA tokens, T for short.
  • Camellia: The name comes from the plant that tea is harvested from. In our TEA Project, Camellia is an NFT, CML for short. A TEA mining machine has to have an associated CML NFT to become an “active” mining node. CML can be traded as it has value. It also has a life cycle: it’s born from a seed, grows into a tree, and eventually dies. -Investors (or landlords): Investors don’t want to deal with the hassle of maintaining a TEA mining machine. They are pure capitalists. They stake their TEA to a Camellia owned by a miner. They receive revenue share in TEA from this Camellia as a shareholder.
  • DAO: The decentralized autonomous organization that governs the ecosystem. Think of it as a utopian-capitalist type of democratic government. Members vote using their staked TEA to make decisions.
  • TEA: Last but not least, TEA is not a role. It’s a utility token with its value pegged to measurable computing consumption.

The Challenges

  • Incentives to miners to join the mining pool.
  • The balance between investors and miners (landlords and farmers).
  • The balance between new and old players. If old players rule, new players will walk away.
  • The balance between the rich and poor. Maintaining a healthy balance will help prevent centralization over time.
  • The balance between different types of TEA nodes to prevent centralization. Maintain a healthy diversity to prevent any single type of node dominating the system.
  • The balance between long-term and short-term crypto investors.
  • The balance between the core team and crypto investors.
  • Population control.
  • Avoiding pump and dump.
  • Maintain the token’s long-term value.

T — the Stable Utility Token for Decentralized Trusted Computing

A New Type of Stable Coin

Camellia, an NFT With a Life

The Profitability of a Camellia and the Dispatching Algorithm

  • At a higher productivity age, e.g., at middle-age.
  • A higher productivity type of plant, e.g., runs on more powerful hardware.
  • Has a higher total stake value from investors staking on your node.
  • Or some special features that others do not have, e.g., an onboard TPU.

Stakes, Slots, and Investors

  • Miners can invest TEA to buy Camellia and sell at a higher price for ROI. How about the investors?
  • Investors do not maintain TEA nodes but still make money from investing in Camellias.
  • Each Camellia has a stack of “stake slots” that investors can stake their TEA into. Similar to investing in a company, the investors are shareholders that earn dividends from the Camellia.

Trading Window and Stake Slot Size

Risks of Staking

Camellia, an NFT That Could Die

  • New technologies bring new tech stacks on newer TEA nodes. Making old Camellia die can encourage miners (farmers) to update their hardware and provide better services. If Camellia never dies, the miners with an old machine can still make enough money due to accumulated credit scores over time. This gives them no incentive to upgrade.
  • After old Camellia dies, miners need to buy new seeds to continue mining. The TEA they spend on new seeds will be burnt by the DAO so as to maintain a healthy circulation of TEA.
  • If old miners’ Camellia never dies, there will be less chance for newer miners to join and compete with old miners.
  • Every new Camellia will bring in new staking slots that accept new investors (landlord) capital. This helps the capital flows and improves the overall ROI.

What is the TEA Project’s Investment Value Given the Camellia NFT Will Die and T is a Stable Token?

Mining Economy: How Will Miners Make Money?

Miners’ Two Questions

  1. How many tokens can I mine given a particular investment (hardware, maintenance, time)?
  2. Will the token pricing increase or at least maintain its value?

Green Mining? Or Rather, Green Farming!

Positive Infinity Loop

Cold Start

What if Someone Dumps?

Leverage Existing IPFS Miners

Eventually, the Demand and Usage of the T Token is the Key

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