FAQ - Tokens

The TEA token is an ERC20 token on the Ethereum network. TEA project is a layer-2 solution that will run above multiple blockchains (layer1) in the future though Ethereum will remain our primary layer-1 .

Why is TEA considered a utility token?

TEA tokens are a measure of how much computing resources are used for a computing task. For example, whn you click the "buy token" button in the TAppStore application, that sets off a series of computational tasks on many servers (we call them TEA nodes). These TEA nodes are run by our community members like you who we call miners. They need to get paid for providing such computing services for the enduser. TEA is the token we use to measure how much you need to pay them. This is similar to Ethereum's gas fee.

What is COFFEE and why do community members earn it during the various Epochs?

Prior to Epoch 12, the ERC20 toke COFFEE was 1:1 exchangeable to USD. That was because at that time it was a USD reward given to community testers. Beginning with Epoch 12, COFFEE is no longer exchangeable to USD. It's instead used to exchange to mainnet TEA when the mainnet launches. In other words, you can use the COFFEE you earn today to buy mainnet TEA tokens as if you were using USD.
COFFEE is our community voting token used in the Governance-Structure. When the mainnet launches, every user's COFFEE will give them voting power towards deciding on governance issues. We have not decided on the name of the actual voting token that users can exchange their COFFEE towards. It may be called a "reputation" or "contribution" token. In order to get more mainnet TEA and higher voting power in DAO voting, a user should get as much COFFEE as possible during the Epochs. Once mainnet launches, then there will be other ways to earn this voting token not tied to COFFEE.

Are the TEA and CML in the contest epochs real tokens?

No, they're part of the simulation. CML and TEA during the competition should be thought of as "testnet CML" and "testnet TEA" which have no relation to mainnet CML or TEA. Even though these two coins are fictitious for the purposes of our mining contest, the testnet TEA that contestants earn during the contest will be exchanged for COFFEE during the epochs. The COFFEE can be exchanged for real TEA after the mainnet launches.

TEA Project Tokenomics

TEA Projects uses many new economic innovations in our tokenomics design. To name a few:
  1. 1.
    The use of a Harberger tax to allocate state maintainer seats.
  2. 2.
    The bonding curve to control the price and supply of TApp and CML node tokens.
  3. 3.
    Because the TEA Project has no limit on block size, most TApps only incur a negligible gas fee from the enduser's perspective. More information on how our gas fee is calculated can be found in our blog.
Last modified 1mo ago