Why COFFEE Is Necessary in TEA’s Testnet

Epoch 3 — Introduction of COFFEE

  • When they borrow funds, they have to pay an interest rate on top of eventually paying back their borrowed funds.
  • When they deposit funds, they receive an interest payment similar to how a bank savings account works.
  • The interest rate for borrowing funds is higher than what’s received for deposits.
  • Epochs 3–5 continued with COFFEE as an asset that contestants would borrow and repay at the end of the epoch. The rewards for each epoch (2000 USDT) were split among the contestants who finished with a positive balance after repaying their initial TEA loans.
  • Epochs 6–8 did away with COFFEE and the concept of COFFEE loans in favor of contestants paying USDT for testnet CML vouchers. Contestants now had to pay to join the contest, and if they wanted any testnet TEA, they’d have to take out a Genesis TEA loan against their CML collateral.

Epoch 9 — the Return of (an Improved) COFFEE

  • Starting in epoch 9, users must exchange USDT for COFFEE to participate in the mining contest.
  • There are no longer any loans since USDT is paid upfront instead.
  • COFFEE and TEA are freely exchanged within the browser wallet. This allows both currencies to reflect their demand through the prevailing exchange rate.
  • Testnet B CML are priced in terms of COFFEE at a constant USDT rate (around $23 per B CML).
  • Users interested in participating in the TEA Project mainnet can exchange their TEA for mainnet token vouchers. They can also freely exchange their TEA back to COFFEE, and from COFFEE back to USDT to exit the contest.

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