hosting_profitability

Hosting Profitability

Miners deploy their mining machines on the TEA network to earn profit. To start earning on the network, miners will need the following:

• A hosted or local machine. Mining hardware is designed to be affordable for miners as they'll just require a Raspberry Pi with GPS and TPM chips. The TEA Project also runs on AWS Nitro which is therefore an option for miners who don't want to run local hardware.

• A CML NFT. Camellia (CML) NFTs are needed as a mining license to activate mining nodes. Hosting CML are purchased through CML auctions, an open process where winning bids are taken in TEA (which is burned) in exchange for CML.

How miners determine the potential revenue?

There are three types of mining available:

• A CML state machine validator mining. A CML nodes have the important task of maintaining the TEA Project's state machine. Because of its importance, very few if any ordinary users will be able to run an A CML node for at least the first 2 years post mainnet launch. A CML earn TEA rewards at the rate shown in the following document: state machine.

• CML hosting mining. When a user says they want to mine on the TEA Project, they will probably be running a hosting CML node. In addition to TEA public service rewards, hosting will earn a gas fee (from end-users) for providing the hosting infrastructure as well as the Harberger Tax payouts (from the state maintainer nodes).

• Private CML availability attestation mining. Private CML mining is earned through making sure hosting CML nodes are online. Since there's only a modest reward for performing this public service, we won't discuss private CML mining as a viable form of profitable mining in this document.

Other types of profitabilities in TEA

There are other forms of staking and mining available to earn revenue on the TEA network. Note that all of the staking tokens listed below are issued along a bonding curve where an increase supply results in an increase in price.

Staking to hosting CML nodes

Staking to B CML nodes is a way to earn a share of mining revenue without having to setup a mining machine. Users will buy miner staking tokens for an individual B mining node in order to share in a mining machine's rewards, either as TEA revenue or TApp token dividend rewards. More info is available in the following document: staking_to_hosting_CML.

Staking to a TApplication (TApp)

To participate in the revenue generated by a TApp, a user can buy that TApp's tokens. Every time a consumer uses a TApp, the developer gets their theta percentage share of the consumer's TEA payment and the rest is injected into its TApp token's bonding curve. The new TApp tokens that are generated from this event are distributed proportionally to existing TApp token holders. More info is available at staking_to_tapp.