Why COFFEE Is Necessary in TEA’s Testnet

Epoch 3 — Introduction of COFFEE

In the earliest epochs, COFFEE began as an asset that user’s had to borrow in order to participate in the TEA mining competition. By receiving COFFEE, users had an agreed-upon valuable asset that could be exchanged for other assets in the TEA ecosystem.

  • 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 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

When COFFEE was first introduced, it was offered as a loan out of thin air to contestants. Since it was free to take a loan, there was no penalty for a contestant to register multiple wallet accounts and attempt to game the system. That was partially the reason the team decided to move to a new model in epochs 6–8, where contestants had to pay USDT for testnet CML vouchers. But this meant retiring COFFEE and the initial loan mechanism with it.

  • 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.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store