Recently, we have announced the masternode collaterals for TE-FOOD masternodes. In a recently released Medium post, the company elaborates on their token economics.

To be able to guarantee masternode profitability, the number of masternodes of each tier will be limited. For each specific node, the total number of allowed nodes will be announced before the launch of their blockchain, based on the amount of estimated daily transactions during the first year of operation. The selection process will be published soon.

To make masternode maintenance a compelling service, the number of operational nodes (nodes which will verify and store transactions) will be limited. Having a large number of masternodes at the start would result in bad revenue outlook which would make masternode operation unprofitable. As the expansion of TE-FOOD progresses, and the number of transactions grows, the number of masternodes will be increased.

Masternode owners that fall by the wayside will be able to operate a Sleeping Masternode that can be switched on when the number of transactions justifies this.

All masternodes will earn CAL (calories), a stable token that will be pegged to the USD. This token will be used to purchase services within the TE-FOOD ecosystem.

The smallest 'Iridium' node will work as a proof-of-stake mechanism, where owners will be able to rent out their tokens for a fee without the need of running an actual node. All other nodes will require a server, where higher tiered nodes will have more powerful hardware requirements.

Masternode owners will need to register, and keep tokens for a specific time period in their wallets (between 2 and 4 months) to be eligible for income.