v4 Economic Model
How earning works with utilization-based marketplace and bid tiers
From Proof-of-Capacity to Utilization Marketplace
Version 4 moves from automatic rewards for providing capacity to a market-driven model where farmers earn when their resources are actively used.
v3 — Proof of Capacity
Farmers are rewarded simply for:
- Connecting hardware to the network
- Proving capacity availability
- Maintaining uptime
Income is passive and predictable but not tied to actual usage
v4 — Utilization Marketplace
Farmers earn when capacity is:
- Listed on the marketplace as “slices”
- Rented by customers
- Actually used for workloads
Bid tiers provide an income floor
Revenue Distribution
When your capacity is rented, the rental payment is distributed as follows:
Bid Tiers: Your Income Floor
Bid tiers ensure farmers have a baseline income even when marketplace demand is low. Mycelium commits to purchasing capacity at minimum rates.
Example: How Bid Tiers Work
Market rate: $5/mo per slice
Bid tier: $3/mo
Market rate exceeds floor
Market rate: $2/mo per slice
Bid tier: $3/mo
Floor kicks in
No marketplace activity
Bid tier: $3/mo
Protocol purchases at floor
Slices and Pricing Control
Farmers divide their node resources into "slices" and set pricing within allowed ranges:
What is a Slice?
A slice is a portion of your node's resources:
A Mini 1 node (16c/32GB/1TB) can be divided into multiple slices
Pricing Flexibility
Set your own prices within ranges:
Higher prices may mean fewer rentals; lower prices attract more customers
Use It and Earn from It
Run your own projects on your own hardware with zero configuration overhead. Your node's capacity is divided into equal slices. Reserve what you need, and list the idle ones on the marketplace to earn income.
You choose the split. Adjust anytime: move slices between personal use and marketplace as your needs change.
Key Considerations
- Earning potential depends on utilization. More demand = higher earnings
- Bid tiers are a floor, not a profit guarantee. Factor in your operating costs
- Active participation required. You'll need to configure slices and pricing
- SPORE value matters. Your earnings are in SPORE, which has a market price after June 2026
- Market dynamics apply. Competition, quality, and pricing affect your success