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# Hosting Economics (SPORE)

This page explains how hosters earn money by contributing capacity to the grid and how **SPORE**, the ecosystem token, works.

> Originally this content was written for *ThreeFold Farming*. Here we describe it from the perspective of **hosters** supporting the Mycelium / ThreeFold stack.

## What is SPORE?

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

### Key Facts

| Feature | Details |
|---------|---------|
| **Base Price (intro period)** | $0.01 per SPORE (fixed until June 30, 2026) |
| **After June 2026** | Price floats based on market demand |
| **What You Earn** | SPORE tokens for capacity and utilization |
| **Max Supply** | 10 billion SPORE (capped) |
| **Utility** | Payment to hosters, growth of the ecosystem |

### Why SPORE Can Appreciate

1. **Part of every payment is burned** – reducing circulating supply.  
2. **Demand grows with adoption** – more workloads → more SPORE demand.  
3. **Scarcity + demand** – over time this can support higher prices.

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## 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 / ThreeFold<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 (800 SPORE) | Added to your balance |
| **Burned** | $1 (100 SPORE) | Destroyed permanently |
| **Development** | $1 (100 SPORE) | Funds infrastructure & software |

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

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## 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.

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## 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.

> Exact reward formulas can evolve over time. Always check the latest tokenomics and dashboards for up‑to‑date numbers.

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## 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 **Cloud Credits (CC)** or other units if/when available.  
- Use CC for predictable budgeting, while keeping some SPORE for upside.  
- Useful if hosting is part of a bigger business.

### 3. Hybrid Approach

Many hosters will:

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

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## 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.

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## Common Questions

<details>
<summary><strong>When will I start earning SPORE?</strong></summary>

As soon as your node is online and offering capacity, you become eligible. Initial earnings typically appear within **24–48 hours** as the system starts assigning workloads.

</details>

<details>
<summary><strong>Can I lose money hosting?</strong></summary>

Hosting involves hardware and power costs. Profitability depends on utilization and SPORE value. However, baseline rewards and long‑term grid usage are designed to make serious, reliable hosters viable over time.

</details>

<details>
<summary><strong>What if SPORE price changes after 2026?</strong></summary>

After June 2026 the price becomes market‑driven. The burn mechanism and adoption are designed to support value, but token prices can still be volatile. Plan with a long‑term perspective and avoid over‑leveraging.

</details>

<details>
<summary><strong>How often do I get paid?</strong></summary>

SPORE accrues continuously and can be checked any time in your dashboards and wallets. There’s no manual payout process.

</details>

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## Additional Resources

- **Community Forum** – [forum.threefold.io](https://forum.threefold.io)  
- **Farming / Hosting Manual** – [manual.grid.tf/farmers/intro](https://manual.grid.tf/farmers/intro)  
- **Community Chat** – [t.me/threefold/1](https://t.me/threefold/1)

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:::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.
:::