The TEA Project has two tokens in our ecosystem with two very different functions:
- TEA: a utility token that’s used to pay for gas on the platform and is needed to use our platform’s TApps.
- Camellia (CML): an NFT that derives its name from the plant that real-life tea is harvested from. CML starts off in a frozen state and can be kept in that state indefinitely for those using CML as an investment. When defrosted, it can be planted into a mining machine to make that node active on the TEA network.
Camellia is an NFT that has a variety of characteristics associated with it.
- Camellia can be hosting or private CML. For example, hosting CML are powerful enough to host TApps while private CML only exist in the home environment and can only mine for public service rewards.
- Where in its current lifespan a particular CML is at. Each CML has a lifespan of approximately 2 years, and mining machines will be most productive around the middle-age of the CML (~1 year old) and wane in capacity as it gets closer to the end of its approximate 2 year lifespan.
- If the CML is planted into a mining machine, a record of its performance will be kept along with any special features the current miner has (e.g. an onboard TPU).
- Each mining CML has a bonding curve token associated with it. Investors can buy these tokens to earn a share of the miner’s revenue.
CML Supply and Demand Triggers
Miners will bid in an open auction to secure Camellia seeds. Once the successful bidder wins a CML seed auction, the TEA amount paid is then burned by the DAO. A consequence then of the CML auction process is the supply of TEA is decreased, which we would expect an associated bump in TEA price. The reduction in supply would certainly give a short-term benefit to TEA holders as well as make mining an appreciating TEA token more attractive to miners. With that said, the DAO will not release CML in an effort to control the supply of TEA or its price.
The supply of CML is controlled by the DAO for steady growth of the ecosystem in a way that supports its price and its supply for those who wish to become miners.
- If there’s a large percentage of miners who aren’t hosting active TApps, then there’s an over-supply of miners in the ecosystem. Further CML will not be released by the DAO in an environment where mining machines are underutilized.
- The other scenario is when there are a number of TApps not being hosted due to the mining network being at capacity. This is where the DAO would step in to issue more CML and make sure that CML supply isn’t a choke point for miners wishing to mine on the TEA network.
CML — Overall Supply and Miner Demand
The overall objective of controlling the supply of CML is to ensure the mining node infrastructure is healthy while at the same time supporting its price for CML holders.
There could be some concern that CML become so rare initially that it’s then too expensive for miners who need CML as a kind of software license for their mining machines. It will probably not ever be “cheap” to mine on the TEA network, but CML supply regulation by the DAO will ensure that it’ll never be prohibitively expensive. Both the modest hardware requirements for mining (at minimum a Raspberry Pi box with TPM and GPS modules) and the price of a CML seed should be within the means of miners who have crypto experience.
How Does Value Accrue to CML Investors?
The initial value of CML will stem from both its scarcity and the fact that it’s held by early round investors and early adopters invested in the success of the TEA Project. We want to attract VCs who believe in the project and will provide long-term support as they’ll be less likely to sell their investment early.
Beyond the early stage investors, the value of CML is ultimately a reflection of the strength of the TEA ecosystem. Just as demand drives the CML price, the following factors all play a part in supporting the demand for CML.
- Developers create TApps that consumers like to use. So we can say that creating a robust dev framework is an important indirect support to the price of CML.
- Increasing TApp popularity will create a need for more CML to generate more computing power. Thus we could say that onboarding capable developers would have a positive influence on the price of CML.
- Miners generating TEA income will be looking for places to invest their TEA. Besides TApp tokens, CML would make an ideal investment given that TEA is designed to be a utility token and not a store of value. Miners will also be looking to purchase CML to bring more mining machines online. So we can say that onboarding miners into the TEA Project will have a positive aspect on the price of CML.
We envision our ecosystem supporting a healthy CML price through different players all with different objectives: investors can target price appreciation, miners can optimize for mining profits, and developers can be attracted to join Web3 through our superior infrastructure. All of these actions are distinctly different in their objectives.