---
sidebar_position: 5
---

# Hosting Economics

This page explains how hosters earn by contributing capacity to the grid.

## Dual-Token System

### What is SPORE?

**SPORE** is the native token of the Mycelium ecosystem. You earn SPORE for providing compute, storage, and network resources as a hoster.

SPORE is part of a **dual-token system** together with **AUR**:

- **SPORE** – growth‑oriented, tradable token that rewards hosters and captures upside from network usage.  
- **AUR** – stable, gold‑pegged utility token used internally for pricing and settling services in the Mycelium marketplace.

### What is AUR?

**AUR** is a stable, gold‑linked utility token used **inside** the Mycelium marketplace for pricing and paying for services (compute, storage, bandwidth):

- **Peg:** 1 AUR = 1/1000 gram of gold (0.001g), so its value tracks the gold price.  
- **Purpose:** Provide predictable, stable pricing for services.  
- **Where used:** Only within the Project Mycelium marketplace and accounting systems.  
- **Trading:** Designed as an internal utility token – **not for trading on external exchanges.**

---

## How Revenue Is Split

When users pay for resources on your node, the payment is automatically split:

```mermaid
graph LR
    A[User Pays for Resources] --> B[80% to Hoster<br/>SPORE Tokens]
    A --> C[10% Burned<br/>Removed from circulation]
    A --> D[10% Mycelium<br/>Development]

    B --> E[Your SPORE Balance Increases]
    C --> F[Total SPORE Supply Decreases]
    D --> G[Ecosystem & tooling improve]
```

### Example

If a user spends **$10** worth of SPORE on workloads:

| Recipient | Amount | What Happens |
|-----------|--------|--------------|
| **You (Hoster)** | $8 | Added to your balance |
| **Burned** | $1 | Destroyed permanently |
| **Development** | $1 | Funds infrastructure & software |

Over time, the burn + demand effects help make each remaining SPORE more scarce.

---

## Burning and Scarcity

Burning is simply **removing tokens from circulation forever**.

Conceptually:

- Without burning: supply stays flat, price tracks demand only.  
- With burning: supply decreases as usage increases → additional upward pressure on price.

This is why long‑term hosters are incentivized to accumulate SPORE while continuing to provide capacity.

---

## Earnings Drivers

Your actual returns as a hoster depend on:

- **Capacity** – How much CPU, RAM, and storage your nodes provide.  
- **Location & reliability** – Good connectivity and uptime attract more workloads.  
- **Demand** – How many users deploy on the grid / Mycelium Cloud.  
- **Time horizon** – SPORE price is fixed during the early phase, then becomes market‑driven.

### Rough Components of ROI

1. **Base rewards** – Capacity made available to the network.  
2. **Utilization‑based income** – When workloads actually run on your nodes.  
3. **Token appreciation (speculative)** – If SPORE price rises as adoption grows.

---

## Managing Your SPORE

### 1. Hold (Long‑Term Thesis)

- Let SPORE accumulate in your wallet.  
- Benefit from potential scarcity and ecosystem growth.  
- Simple, low‑effort strategy.

### 2. Convert Some to Stability

- Convert a portion of SPORE to **AUR** (when such swaps are available in the Mycelium marketplace).  
- Use AUR for more predictable, gold‑pegged budgeting of services and operating costs within the ecosystem.  
- Useful if hosting is part of a bigger business and you want to reduce exposure to SPORE price volatility.

### 3. Hybrid Approach

Many hosters will:

- Keep a core SPORE position (long term).  
- Periodically convert a portion to cover opex (power, connectivity, hardware refresh).

---

## Important Limitations & Risks

Hosting on the Mycelium stack and earning SPORE (and potentially AUR) involves **real risk**. It is important to understand:

- **Not fiat, not a bank product.**  
  SPORE and AUR are digital tokens used within the Mycelium ecosystem. They are **not** bank deposits, legal tender, or regulated investment products.

- **No guaranteed redemption to USD or other fiat.**  
  There is **no promise or guarantee** from Mycelium or any other party that you will be able to convert SPORE or AUR back into USD, EUR, or any other fiat currency, now or in the future.

Only host with hardware and funds you can afford to risk, and consult independent advisers if you are unsure how to interpret these economics.

---

## Getting Started with Earnings

### Step 1: Set Up Your Node

Make sure your node is live and part of your farm:

- Follow **[Set Up Your Node](/hosters/setup)** to get connected.  
- Confirm visibility in the dashboard.

### Step 2: Monitor Utilization

- Use the dashboard to see when and how your capacity is used.  
- Watch resource allocation, uptime, and earned SPORE over time.

### Step 3: Iterate on Hardware & Pricing

- Improve power efficiency to increase net returns.  
- Consider upgrading to **Edge Compute** or **Edge AI** nodes for higher‑value workloads.  
- Stay informed about any bidding / pricing mechanisms offered by the platform.

---

:::tip Ready to Start Earning?
If you haven’t already, finish the **[Setup Guide](/hosters/setup)** and make sure your node is online. From there, SPORE rewards start accumulating automatically as the network uses your capacity.
:::