Skip to main content

Bidding System

The Mycelium Network's decentralized marketplace includes a bidding system. This enables users, including the Mycelium COOP itself, to express how much capacity they're willing to buy and at what price. When a matching offer from a farmer is found, the bid becomes a reservation and the user is now renting that capacity.

Mycelium COOP, as the protocol operator, places bids on capacity to accomplish several goals:

  • Ensure that sufficient resources are reserved for commercial service operations
  • Bootstrap demand for new node types
  • Provide a baseline income for all hosters
  • Support strategic partnerships and integrations

Bid Tiers are structured as minimum prices for standardized slice types:

  • "Std Compute Slice" @ USD 1.20/month
  • "AI Slice" @ USD 50.00/month
  • "Nvidia 1x Slice" @ USD 500/month
  • (See overview.md for full tier list)

Other Entities as Bidders​

Large-scale users, enterprises, and decentralized applications can also place bids:

  • Long-term infrastructure needs (e.g., "I want 100 standard compute slices for 6 months")
  • Burst capacity for specific events
  • Reserved resources for their own user base

Benefits for Mycelium Hosts​

1. Revenue Guarantee (Bid Tiers)​

Your slice matches a bid tier → You have a minimum price floor.

  • Example: Your Mini 1 slice matches "Std Compute Slice"
  • Minimum guaranteed price: USD 1.20/month
  • You earn 80% of USD 1.20 = 96 SPORE/month guaranteed
  • You can still charge MORE to individual customers

This means that:

  • Baseline demand from Mycelium always exists
  • Your nodes generate steady SPORE revenue
  • You can plan operating costs with confidence

Example:

  • Your Mini 1 offers 7 slices
  • Individual customers rent 3 slices at premium prices
  • Bid tier guarantees revenue for remaining 4 slices
  • Total: consistent income from all 7 slices

3. Yield Management​

Hosters can practice "yield management" (similar to airlines or hotels):

ScenarioActionOutcome
High demandCharge premium prices (USD 12/slice)Max SPORE earnings
Medium demandCharge mid-range prices (USD 5 – 8/slice)Good earnings
Low demandRely on bid tier minimums (USD 1.20/slice)Guaranteed earnings

Result: Your nodes are always earning, not idle.

4. Flexible Duration Options​

Bids can be for various time periods:

  • Hourly bids: Short-term, high prices
  • Monthly bids: Medium-term, stable rates
  • Multi-month bids: Long-term commitments, lower prices (but predictable income)

This flexibility lets you balance immediate income needs with long-term stability.

5. Reduced Market Risk​

Without bids: You depend entirely on individual customer demand (volatile)

With bids: Mycelium and others provide a baseline of demand (stable)

  • Less exposed to market fluctuations
  • More predictable monthly earnings
  • Can confidently expand operations

Marketplace Mechanics​

How Bids are Matched to Your Slices​

  1. You list slices on the marketplace with specs and pricing
  2. Matching happens automatically:
    • System checks if your slice matches a bid tier
    • If it does, you're eligible to fulfill that bid
  3. You accept or reject: You can choose to accept bids or rely on individual customers
  4. SPORE payment: When bid is fulfilled, you earn 80% of the bid price in SPORE

Example: Bid Matching Process​

You have: Mini 1 node with 7 slices (specs: 2.3 CPU cores, 4GB RAM, 143GB SSD)

Bid tier matches: "Std Compute Slice" (min price: USD 1.20/month)

Scenario 1 – You Accept Bid:

  • Mycelium buys 1 slice @ USD 1.20/month
  • You earn 80% of USD 1.20 = 96 SPORE/month
  • Remaining 6 slices available for individual customers

Scenario 2 – You Reject Bid, Wait for Premium Customer:

  • Individual customer rents 1 slice @ USD 12/month
  • You earn 80% of USD 12 = 960 SPORE/month
  • Risk: Slice sits idle if no customer shows up

Smart Strategy:

  • Accept bid tier for baseline revenue (96 SPORE guaranteed)
  • Offer remaining slices to individual customers at premium prices
  • Combine both for maximum earnings

Why Bids Benefit the Entire Ecosystem​

For You (Mycelium Hosts)​

  • Guaranteed minimum revenue
  • Reduced idle time
  • Predictable income for business planning

For Mycelium​

  • Ensures critical capacity exists for protocol operations
  • Can support new integrations with reserved resources
  • Maintains market stability

For Users​

  • Resources always available
  • Competitive pricing maintained
  • Reliable infrastructure

Transparency and Automation​

All aspects of bidding are transparent:

  • Bid prices are visible to all hosters
  • Matching is automated via smart contracts
  • No manual negotiations or delays
  • SPORE payments are instant and verifiable

Result: A fair, efficient marketplace where hosters know exactly what they're getting.

Conclusion: Bids as Your Revenue Floor​

The bidding system on the Mycelium Network provides a powerful mechanism for hosters to:

  1. Secure guaranteed SPORE revenue via bid tier minimums
  2. Reduce idle capacity with baseline demand
  3. Combine safety with upside: Earn guaranteed income + premium rates from individual customers
  4. Plan with confidence: Predictable monthly earnings for hardware and electricity costs

By enabling Mycelium and other entities to proactively bid on capacity, the grid fosters a dynamic marketplace where hosters achieve financial certainty while still capturing upside from premium-paying customers.