Skip to main content

Mycelium Hosting FAQ

Hoster Economics & ROI​

How long does it take to break even on a node investment?

Break-even time depends on your node type, utilization rate, and electricity costs:

Mini 1 Node (USD 350 investment):

  • Hardware cost amortized: USD 6/month
  • At minimum utilization (7 slices @ USD 1.20/month): 1,092 SPORE/month = USD 10.92
  • Profit: USD 10.92 - USD 6 = USD 4.92/month
  • Break-even: ~71 months (6 years) at minimum utilization
  • At maximum utilization (7 slices @ USD 12/month): 12,600 SPORE/month = USD 126
  • Profit: USD 126 - USD 6 = USD 120/month
  • Break-even: ~3 months at maximum utilization

Mini AI 1 Node (USD 2,000 investment):

  • Hardware cost amortized: USD 33/month
  • At minimum utilization (4 slices @ USD 10/month): 5,200 SPORE/month = USD 52
  • Profit: USD 52 - USD 33 = USD 19/month
  • Break-even: ~105 months (8.75 years) at minimum utilization
  • At maximum utilization (4 slices @ USD 100/month): 60,000 SPORE/month = USD 600
  • Profit: USD 600 - USD 33 = USD 567/month
  • Break-even: ~3.5 months at maximum utilization

Key Factors:

  • Utilization rate is the primary driver (how many slices are rented)
  • Electricity costs vary by region (not included in above calculations)
  • SPORE price appreciation after June 30, 2026 accelerates ROI
  • Bid tier guarantees provide baseline revenue even at low utilization
What happens if my slices don't get rented?

The bidding system protects you from zero earnings:

Bid Tier Protection:

  • Your slices match guaranteed minimum prices (bid tiers)
  • If no individual customers rent your slices, Mycelium's bid tier ensures baseline revenue
  • Example: Mini 1 slice always earns minimum USD 1.20/month = 96 SPORE/month

Why Slices Might Sit Idle:

  • Low market demand for your node type
  • Pricing set too high compared to competitors
  • Geographic location with limited user base
  • Network connectivity issues

Strategies to Increase Utilization:

  1. Lower your prices within the min/max range to attract renters
  2. Improve node visibility by maintaining good uptime and performance
  3. Accept bid tier offers to guarantee baseline revenue while waiting for premium customers

Long-Term Outlook:

  • As Project Mycelium adoption grows, demand for slices increases
  • More users = more competition for slices = higher utilization rates
  • Early hosters benefit from lower competition and higher utilization potential
Can I adjust my slice prices after listing them?

Yes. Hosters have flexibility in pricing management:

  • You can change your slice prices at any time
  • Changes take effect for new rental requests
  • Existing active rentals continue at their original agreed price
  • No penalties for price adjustments

Pricing Strategy Considerations:

  • High demand periods: Increase prices to capture premium value
  • Low demand periods: Decrease prices to attract renters and reduce idle time
  • Competitive monitoring: Adjust based on what other hosters charge
  • Seasonal variations: Adjust for predictable demand fluctuations
How does electricity cost affect my profitability?

Electricity is your primary ongoing operational cost:

Electricity Cost Calculation:

  • Typical node power consumption: 50-200 watts (depending on hardware)
  • Mini 1: ~60 watts
  • Mini AI 1: ~100 watts
  • Nvidia 6000: ~150-200 watts

Monthly Electricity Cost (at USD 0.10/kWh):

  • Mini 1: 60W × 730 hours/month = 43.8 kWh = USD 4.38/month
  • Mini AI 1: 100W × 730 hours/month = 73 kWh = USD 7.30/month
  • Nvidia 6000: 175W × 730 hours/month = 127.75 kWh = USD 12.78/month

Slice Management & Pricing​

What if a customer stops paying for their rental?

The marketplace has built-in protections for Mycelium Hosts:

Payment Enforcement:

  • The system handles all payments automatically
  • Rental access is tied to active payment status
  • If payment fails, access is immediately revoked
  • No manual collection needed

How It Works:

  1. Customer initiates rental and authorizes payment
  2. System verifies payment capability
  3. Rental begins only after payment is confirmed
  4. If payment lapses, access stops automatically
  5. You retain the SPORE already earned

Your Protection:

  • You never provide service without confirmed payment
  • Payment is atomic with access provision
  • No credit risk or bad debt exposure
  • Instant payment settlement

Bidding System & Revenue Guarantees​

How do bid tiers guarantee my minimum revenue?

Bid tiers create a revenue floor through systematic purchasing:

How Bid Tiers Work:

  • Mycelium sets minimum prices for standardized slice types
  • Your slice matches a tier based on hardware specs
  • If your slice sits idle, Mycelium's bid tier ensures baseline revenue
  • You earn 80% of the bid tier price in SPORE

Example: Mini 1 Slice

  • Your slice specs: 2.3 CPU cores, 4GB RAM, 143GB SSD
  • Matches bid tier: "Std Compute Slice" @ USD 1.20/month
  • Minimum guaranteed revenue: USD 1.20 × 80% = 96 SPORE/month
  • This applies even if no individual customers rent your slice
Can I reject a bid tier offer?

Yes. Mycelium Hosts have full control over accepting or rejecting bids:

Your Options:

  1. Accept bid tier: Guaranteed revenue at minimum price
  2. Reject bid tier: Wait for individual customers at premium prices
  3. Partial acceptance: Accept bid tier for some slices, hold others for premium customers

SPORE Token Management​

Should I hold SPORE or convert it to other currencies?

This depends on your financial goals and risk tolerance:

Hold SPORE If:

  • You believe in Project Mycelium's long-term growth
  • You want to benefit from token appreciation
  • You're comfortable with market driven price after June 30, 2026

Benefits of Holding:

  • SPORE price appreciation potential
  • Burning mechanism reduces supply, increasing scarcity
  • Network growth drives demand
  • Compounding effect: earnings + appreciation
How does token burning benefit me as a farmer?

Token burning creates multiple benefits for Mycelium Hosts holding SPORE:

Direct Benefit: Supply Reduction

  • 10% of all revenue is burned (removed from circulation)
  • Total SPORE supply decreases over time
  • Fewer tokens available = increased scarcity
  • Each remaining SPORE represents larger share of network

Price Appreciation Mechanism:

  • Burning reduces supply while demand grows
  • Price = Market Demand ÷ Available Supply
  • Fewer tokens + same demand = higher price
  • Compounding effect over time

Technical & Operational​

What technical requirements do I need to run a node?

Running a node requires specific hardware and connectivity:

Hardware Requirements:

  • Minimum: Mini 1 (USD 350) - 16 CPU cores, 32GB RAM, 1TB SSD
  • Recommended: Mini 2+ or Mini AI 1 for better performance
  • Premium: Nvidia 6000 or Tenstorrent for AI workloads

Network Requirements:

  • Stable internet connection (minimum 10 Mbps upload/download)
  • Static IP address (or dynamic DNS)
  • Low latency preferred (< 100ms to nearest node)
  • Redundant connectivity recommended for high availability in case of commercial Hosting

Power Requirements:

  • Stable power supply (UPS recommended)
  • Adequate cooling (ambient temperature < 30°C ideal)
  • Sufficient power capacity (60-200W depending on hardware)

Software Requirements:

  • ZOS (Zero OS) operating system
  • Automatic deployment via Mycelium Network
  • No manual OS installation needed
  • Stateless boot from network

Setup Process:

  1. Purchase hardware
  2. Install ZOS on node
  3. Connect to Mycelium Network
  4. Configure slices and pricing
  5. List on marketplace
  6. Start earning SPORE
What happens if my node goes offline?

Node downtime affects your earnings and reputation:

Immediate Impact:

  • Slices become unavailable to customers
  • Active rentals may be interrupted
  • Customers receive refunds for interrupted service
  • You lose SPORE earnings during downtime
  • TBD: slashing of staked SPORE (to be defined in future)

Reputation Impact:

  • Downtime is tracked in your Mycelium Host profile
  • Low uptime reduces customer trust
  • May affect future rental demand
  • Bid tier guarantees may be affected

Recommendation:

  • Invest in UPS and redundant connectivity
  • Target 99%+ uptime for best results
Can I run multiple nodes?

Yes. Mycelium Hosts can operate multiple nodes for increased earnings:

Benefits of Multiple Nodes:

  • Diversified hardware types
  • Geographic distribution
  • Increased total earning potential
  • Risk mitigation (one node failure doesn't stop all earnings)
  • Economies of scale in operations