# ThreeFold Points (TFP) System

The TF Marketplace operates on a [TFP](./tfp.md) system where value is exchanged between suppliers (providers) and consumers through TFP. This creates a balanced marketplace where participants can both earn and spend TFP based on their contributions and needs.

## Core Principles

- [TFP = ThreeFold Tokens](./tfp.md) represent value exchanged within the marketplace
- Suppliers provide services/products and earn TFP
- Consumers use services/products and spend TFP
- The same entity can be both supplier and consumer in different contexts
- TFP facilitate direct value exchange without traditional currency intermediaries

## Exchange Categories

The table below illustrates how TFP flow between suppliers and consumers across different service categories:

| Category | Supplier | Consumer | Exchange Mechanism |
|----------|----------|----------|-------------------|
| **Compute** | Farmers provide slices (compute resources) | Users reserve and utilize slices | Consumers pay TFP to suppliers based on slice utilization |
| **3Nodes** | Hardware owners selling physical computing equipment | Users looking to acquire hardware (hosted or physically transferred) | Buyers pay upfront TFP to sellers based on hardware value |
| **Mycelium Gateways (MGW)** | Gateway providers offer internet connectivity | Users access the internet through gateways | Consumers pay TFP for bandwidth consumed through the gateway |
| **Bandwidth Providers** | Entities with significant bandwidth capacity | TF-run Mycelium Gateways | Providers paid TFP based on TB of bandwidth delivered |
| **Mycelium Names** | TF COOP (name provider) | Users registering names | Consumers pay TFP based on name length (shorter names cost more TFP) |
| **Human Energy** | Service providers (designers, admins, trainers, developers) | Users of professional services | Consumers pay TFP directly to service providers based on agreed rates |
| **Application Services** | Solution providers | End users | Unique model: users provide slices to solution providers, maintaining sovereignty over deployed solutions |
| **Money Exchange**, phase 2 | TFP sellers | TFP buyers | TFP can be bought/sold for currencies (TFT, USD, etc.) through [liquidity pools](./tfp.md) |

## Benefits of the TFP System

- **Sovereignty**: Users maintain control over their resources and deployed solutions
- **Flexibility**: Participants can be both providers and consumers
- **Efficiency**: Direct value exchange without intermediaries
- **Sustainability**: System encourages balanced contribution and consumption
- **Liquidity**: TFP can be exchanged for traditional currencies when needed through [liquidity pools](./tfp.md)

## Governance

The TFP system is governed by transparent rules and community consensus, ensuring fair exchange rates and preventing manipulation.

*Note: For information about the slashing mechanism for farmers who fail to meet SLAs, please refer to the [farmers.md](farmers.md) document.*