152 lines
5.2 KiB
Markdown
152 lines
5.2 KiB
Markdown
---
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sidebar_position: 5
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---
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# Hosting Economics
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This page explains how hosters earn by contributing capacity to the grid.
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## Dual-Token System
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### What is SPORE?
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**SPORE** is the native token of the Mycelium ecosystem. You earn SPORE for providing compute, storage, and network resources as a hoster.
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SPORE is part of a **dual-token system** together with **AUR**:
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- **SPORE** – growth‑oriented, tradable token that rewards hosters and captures upside from network usage.
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- **AUR** – stable, gold‑pegged utility token used internally for pricing and settling services in the Mycelium marketplace.
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### What is AUR?
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**AUR** is a stable, gold‑linked utility token used **inside** the Mycelium marketplace for pricing and paying for services (compute, storage, bandwidth):
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- **Peg:** 1 AUR = 1/1000 gram of gold (0.001g), so its value tracks the gold price.
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- **Purpose:** Provide predictable, stable pricing for services.
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- **Where used:** Only within the Project Mycelium marketplace and accounting systems.
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- **Trading:** Designed as an internal utility token – **not for trading on external exchanges.**
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---
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## How Revenue Is Split
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When users pay for resources on your node, the payment is automatically split:
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```mermaid
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graph LR
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A[User Pays for Resources] --> B[80% to Hoster<br/>SPORE Tokens]
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A --> C[10% Burned<br/>Removed from circulation]
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A --> D[10% Mycelium<br/>Development]
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B --> E[Your SPORE Balance Increases]
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C --> F[Total SPORE Supply Decreases]
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D --> G[Ecosystem & tooling improve]
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```
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### Example
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If a user spends **$10** worth of SPORE on workloads:
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| Recipient | Amount | What Happens |
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|-----------|--------|--------------|
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| **You (Hoster)** | $8 | Added to your balance |
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| **Burned** | $1 | Destroyed permanently |
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| **Development** | $1 | Funds infrastructure & software |
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Over time, the burn + demand effects help make each remaining SPORE more scarce.
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---
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## Burning and Scarcity
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Burning is simply **removing tokens from circulation forever**.
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Conceptually:
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- Without burning: supply stays flat, price tracks demand only.
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- With burning: supply decreases as usage increases → additional upward pressure on price.
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This is why long‑term hosters are incentivized to accumulate SPORE while continuing to provide capacity.
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---
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## Earnings Drivers
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Your actual returns as a hoster depend on:
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- **Capacity** – How much CPU, RAM, and storage your nodes provide.
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- **Location & reliability** – Good connectivity and uptime attract more workloads.
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- **Demand** – How many users deploy on the grid / Mycelium Cloud.
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- **Time horizon** – SPORE price is fixed during the early phase, then becomes market‑driven.
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### Rough Components of ROI
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1. **Base rewards** – Capacity made available to the network.
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2. **Utilization‑based income** – When workloads actually run on your nodes.
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3. **Token appreciation (speculative)** – If SPORE price rises as adoption grows.
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---
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## Managing Your SPORE
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### 1. Hold (Long‑Term Thesis)
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- Let SPORE accumulate in your wallet.
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- Benefit from potential scarcity and ecosystem growth.
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- Simple, low‑effort strategy.
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### 2. Convert Some to Stability
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- Convert a portion of SPORE to **AUR** (when such swaps are available in the Mycelium marketplace).
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- Use AUR for more predictable, gold‑pegged budgeting of services and operating costs within the ecosystem.
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- Useful if hosting is part of a bigger business and you want to reduce exposure to SPORE price volatility.
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### 3. Hybrid Approach
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Hosters can decide to:
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- Keep a core SPORE position (long term).
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- Periodically convert a portion to cover opex (power, connectivity, hardware refresh).
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---
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## Important Limitations & Risks
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Hosting on the Mycelium stack and earning SPORE (and potentially AUR) involves **real risk**. It is important to understand:
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- **Not fiat, not a bank product.**
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SPORE and AUR are digital tokens used within the Mycelium ecosystem. They are **not** bank deposits, legal tender, or regulated investment products.
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- **No guaranteed redemption to USD or other fiat.**
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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.
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Only host with hardware and funds you can afford to risk, and consult independent advisers if you are unsure how to interpret these economics.
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---
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## Getting Started with Earnings
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### Step 1: Set Up Your Node
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Make sure your node is live and part of your farm:
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- Follow **[Set Up Your Node](/hosters/setup)** to get connected.
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- Confirm visibility in the dashboard.
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### Step 2: Monitor Utilization
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- Use the dashboard to see when and how your capacity is used.
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- Watch resource allocation, uptime, and earned SPORE over time.
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### Step 3: Iterate on Hardware & Pricing
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- Improve power efficiency to increase net returns.
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- Consider upgrading to **Edge Compute** or **Edge AI** nodes for higher‑value workloads.
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- Stay informed about any bidding / pricing mechanisms offered by the platform.
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---
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:::tip Ready to Start Earning?
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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.
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:::
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