Frequently Asked Questions

Products

Which products do you have?

• Mycelium Cloud: Kubernetes cloud
• Mycelium Network: Always-on, shortest-path, safe networking tech with CDN and LLM broker
• Hero: Launching H1 2026, personal AI agent
• Marketplace: Allows many people to build on top

Do you have customers?

Yes, we have several customers using our Mycelium Network and Mycelium Cloud products. We are also in discussions with several potential high-volume customers, but cannot share specific names at this stage. Check also our existing opensource offering in https://dashboard.grid.tf/

Token System

Will you do something to increase token performance?

Yes, we have implemented a multi-token system with built-in burning mechanisms to create scarcity and drive value.

Key features include:

• Multi-Token Architecture: to serve different purposes
• Utilization: large offtakers need more capacity then the current grid can provide
• Burning Mechanism: 10% of all revenue is used to buy and burn SPORE, reducing supply
• Exchange Mechanism: Exchange AUR to SPORE with Dutch auction to protect long-term holders (phase 2)
• Stable Utility Token (AUR): Pegged to gold for price stability
  • AUR (Gold-Backed Currency): 1 AUR = 1/1000 gram of gold (0.001g). Stable value, pegged to gold price. Used internally in marketplace. NOT tradable on external exchanges. Backed by physical gold reserves.

If your project is so strong, why your token weak?

We believe, the current marketcap of SPORE is super low compared to the potential of the Mycelium ecosystem. If you look at the current marketcap of USD 10M, it is very low compared to the potential market size of the cloud and AI markets (several trillion USD).

We are not here to pump the token price, but to build a sustainable ecosystem. We have a real product, real customers, and a real plan to grow the ecosystem.

Now its up to you to draw your own conclusions.

What are the different types of tokens in the Mycelium ecosystem?

The Mycelium ecosystem uses a multi-currency system with three distinct token types:

1. SPORE (Mycelium Point)

   • Exists only within the marketplace for internal accounting and settlements
   • 1 SPORE = 1 SPORE
   • Cannot be converted back to SPORE until the market price of SPORE exceeds the fixed conversion rate of AUR to SPORE
   • When users convert to SPORE, their SPORE is locked until they return SPORE to unlock their SPORE

2. SPORE (Mycelium Token)

   • Tradable reserve asset traded on public blockchains
   • Price can be volatile
   • Scarce, capped at 1 billion maximum
   • Not directly usable inside the marketplace, must be converted to SPORE first

3. AUR

   • Stable utility token pegged to 1/1000 of a gram of gold (0.001g)
   • Only circulates within the digital marketplace (non-tradable)
   • Primary medium of exchange for services within the ecosystem
   • Generated when users enter with SPORE or credit card, burned when exiting

How do the token swaps work?

There are several types of swaps in the Mycelium ecosystem:

1. SPORE to AUR Swap (both directions)

   • Allows users to swap SPORE for AUR at a fixed rate
   • Users can acquire AUR at a fixed rate of 1 AUR for 2 SPORE until the market price of SPORE surpasses this rate
   • Open question: maybe it should be 1 AUR = 1 SPORE

2. USD to AUR Swap (one way)

   • Allows users to purchase AUR directly with USD via credit card
   • Fixed rate of 1 AUR = USD 0.128 (as of Oct 8, 2025, changes as the price of gold changes)
   • USD collected is held in a treasury to back the AUR in circulation

How is revenue distributed in the Mycelium ecosystem?

Revenue distribution in the Mycelium ecosystem follows this model:

• 80% of revenue goes to Mycelium Hosts (as SPORE)
• 10% of revenue is burned to reduce supply and maintain peg stability
• 10% of revenue goes to Mycelium Foundation for ecosystem development and maintenance

Why does Mycelium use a multi-token system?

The multi-token architecture solves several critical problems:

• Price Stability: AUR provides predictable pricing for services (pegged to gold)
• Market Opportunity: SPORE remains tradable with upside potential
• Controlled Liquidity: Prevents sudden token dumps while maintaining fairness
• Sustainable Growth: Minting/burning mechanisms ensure backing and prevent inflation
• Operational Viability: Hosters receive stable AUR for planning while retaining SPORE exposure options

Burning Mechanism

What is token burning and how does it work?

Token burning permanently removes tokens from circulation. When a percentage of real revenue is used to buy and burn tokens, it directly reduces the total supply, creating scarcity. If demand stays constant or increases, the token price naturally rises.

In the Mycelium ecosystem:

• 10% of all generated revenue is used to purchase tokens on the open market and destroy them
• This converts real economic activity into direct buying pressure
• As supply decreases, each remaining token represents a larger claim on the network's total value

What are the base assumptions for the burning mechanism?

The base assumptions for the burning mechanism are:

• SPORE Price (initial): USD 0.10
• Market Cap (Fully Diluted): USD 100,000,000
• Burn on Revenue: 10%
• Revenue over 4 years: USD 1,000,000,000
• Tokens Burned: USD 100,000,000 worth of tokens
• Market Size Reference: Cloud & AI markets worth several trillion USD

The conclusion is that there can never be 0 tokens in a functioning economy, so the price will keep rising as supply decreases.

Hoster Economics

What is a Mycelium Host?

A Mycelium Host is an individual or entity that operates one or more "nodes" on the Mycelium Network. A node is essentially a physical or certified compute machine that provides resources like CPU, memory, and storage to the network. By making these resources available, Mycelium Hosts become integral to the decentralized cloud, enabling users worldwide to deploy applications, store data, and run various workloads without relying on centralized providers.

How do Mycelium Hosts make money?

Hosters earn income by renting out "slices" of their nodes:

1. Mycelium Hosts invest in hardware to set up their nodes and connect them to the Mycelium Network
2. They can divide their nodes into multiple slices with allocated resources
3. Mycelium Hosts can set their own pricing within a defined minimum and maximum range
4. When a user reserves a slice, the Mycelium Host earns income with an 80/10/10 split:
   • 80% goes directly to the Mycelium Host
   • 10% is burned to reduce token supply
   • 10% goes to Mycelium for protocol development and maintenance

How does the decentralized marketplace work?

The Mycelium Network operates as a decentralized marketplace where hosters and users interact directly:

1. Hosters offer resources by listing their available node slices with specifications and pricing
2. Users browse available resources and reserve slices for specific durations
3. The marketplace supports dynamic pricing where prices adjust based on reservation length
4. Mycelium sets "Bid Tiers" for various slice types to ensure baseline demand
5. Smart contracts on the Mycelium blockchain handle reservations and payments

Liquidity Pools

Can I get my SPORE back immediately after converting to AUR?

Not instantly. The process requires:

1. Convert AUR to SPORE (SPORE) in Pool 2
2. Exit SPORE via Dutch auction in Pool 3 to receive USDC
3. Buy SPORE on the open market with USDC if you want SPORE again

The original SPORE you deposited is locked to back the AUR that was minted.

What if I just want stable income from hosting?

You can keep your earnings in AUR for:

• Stable value (pegged to gold)
• No exposure to SPORE market swings
• Ability to convert to SPORE later if you want upside potential

How do I benefit from SPORE price increases?

Convert your AUR to SPORE. SPORE value tracks SPORE market price, so if SPORE goes up, your SPORE position becomes more valuable in AUR or USDC terms.

Yin-Yang Currency Philosophy

What is the philosophical foundation behind the dual token system?

How is the liquidity pool different from traditional DeFi pools?

The Mycelium position-based liquidity pools are fundamentally different from traditional DeFi pools:

Feature	Traditional Liquidity Pools	Mycelium Position-Based Pools
LP Tokens	Floating value tokens issued	No tokens - fixed positions tracked
Your Share	Changes with market volatility	Fixed based on contribution + time
Exit	Instant (swap LP tokens)	Controlled (Dutch auction)
Impermanent Loss	Yes - you lose value in volatile markets	No - your position doesn't change
Gaming Risk	Front-running, sandwich attacks	Protected by time-weighting
Best For	Active traders	Long-term supporters

The Mycelium approach prioritizes fairness and long-term contribution over market speculation.

How does the Dutch auction exit mechanism work?

The Dutch auction exit mechanism works as follows:

1. Bids Are Submitted: LPs submit requests with amount and minimum acceptable price
2. Bids Are Sorted: Ranked from lowest price to highest (those willing to accept biggest discount first)
3. Clearing Price Is Found: System fills bids from bottom up until reaching allowed maximum
4. Settlement: Successful LPs receive their share of the paired token at the clearing price

Key principles:

• No timing advantage - when you bid doesn't matter, only the price you're willing to accept
• Price determines priority - bigger discounts get filled first
• Capped exit volume - only up to 50% of total liquidity can leave through Dutch auctions

What is position-based liquidity pooling?

Position-based liquidity pooling tracks contributions differently than traditional pools:

• Every liquidity contribution is recorded as a fixed position with:

  • Token type (e.g., USDC, SPORE)
  • Contribution amount
  • Timestamp

• No floating LP tokens are issued

• Share is determined by how much you contributed and how early you contributed

• Positions don't change with price fluctuations

• No impermanent loss like in traditional DeFi pools

How does margin redistribution work in the liquidity pools?

When liquidity providers exit through the Dutch auction:

• The margin between what a bidder was willing to accept and the final clearing price is collected by the pool
• This margin is aggregated across all filled bids and shared among remaining liquidity providers
• Distribution is proportional to each LP's share of the total liquidity
• The longer you hold, the more you benefit when others leave

The Mycelium token system is philosophically rooted in economist Bernard Lietaer's concept of complementary currencies:

Yang Currencies:

• Conventional, national currencies (e.g., dollar, euro, yen)
• Promote competition, scarcity, hierarchy, and analytical thinking
• Efficient for global trade and industrial economic activities

Yin Currencies:

• Complementary or community currencies
• Improve cooperation, egalitarian relationships, quality of life, sustainability, and social trust
• Thrive within bounded communities where circulation reinforces social cohesion

In the Mycelium system:

• SPORE serves as the Yang currency (tradable, scarce, market-driven)
• AUR serves as the Yin currency (stable, community-focused, cooperative)

Why are both Yin and Yang currencies important?

Lietaer presents Yin and Yang currencies as complementary tools rather than antagonistic systems:

• Societies that incorporate both systems are typically more resilient and socially robust
• The dual structure aims to:
  • Preserve market efficiency and investment potential (Yang)
  • Enable stable, community-oriented value exchange (Yin)
  • Create resilience through complementarity
  • Balance speculation with sustainability

Real-world examples like Bali's dual system and Japan's care economy demonstrate how both currency types can solve multiple community needs.

Implementation and Roadmap

When will the liquidity pools be launched?

The liquidity pools are planned to launch on January 1, 2026.

What protections are built into the liquidity system?

Several key protections ensure sustainability:

1. No Unlimited Dumping: Exits are capped per period (e.g., max 5% of total liquidity) and require accepting a discount
2. Fair Distribution: Position-based tracking means early supporters aren't diluted, with time-weighting rewarding long-term commitment
3. Sustainable Liquidity: Only 50% of total contributed liquidity can ever exit via Dutch auctions, with margin benefits redistributed to remaining participants
4. Transparency: All positions are clearly tracked and visible with consistent rules applied equally

Is the validator program still planned?

The validator program is still planned and relevant to the roadmap but it is taking longer than expected to launch as we need the proper conditions to launch it.