Earth Network — TFZ Mining Infrastructure #201
Description
Grant Proposal: Earth Network — TFZ Mining Infrastructure
Applicant: Earth Network
Amount Requested: $85,000 USD
Category: Ecosystem Infrastructure / Privacy Bridge Development
Submitted by: Braydn Larsen— Earth Network Founder
Summary
Earth Network requests a $85,000 loan from the Secret Labs Grant Program to establish a Monero mining operation within the Tbilisi Free Zone (TFZ), Georgia. The operation creates a financially self-sustaining infrastructure node that funds ongoing Earth Network and Secret Network development, while positioning Earth Network as a bridge operator routing XMR liquidity into the Secret Network ecosystem.
Applicant Background
Existing Relationship with Secret Network
Earth Network operates an active validator on the Secret Network mainnet. This proposal comes from an existing ecosystem partner with demonstrated technical competence, not a first-time applicant.
The Opportunity: Tbilisi Free Zone
The Tbilisi Free Zone (TFZ) is a BitFury-origin crypto mining zone currently operating 90MW of active mining infrastructure in Tbilisi, Georgia. It is the only Free Industrial Zone in Georgia purpose-built for crypto mining.
| Factor | Detail |
|---|---|
| Tax treatment | 0% income, dividend, VAT, import/export |
| Power cost | ~$0.05–0.08/kWh |
| Existing mining tenants | 90MW operational, proven infrastructure |
| Company setup | ~$6,000 minimum capital, crypto license in 5–10 days |
| Location | 17km from Tbilisi city center, adjacent to airport |
The infrastructure is proven. Power density, cooling, and connectivity are already built for mining-scale operations. Entry risk is substantially lower than greenfield deployment.
Use of Funds
| Line Item | Amount |
|---|---|
| Mining hardware (10x antminer x9xmr miner) | $62,000 |
| TFZ company registration + license | $8,000 |
| First 3 months operating costs (power, lease) | $10,000 |
| Logistics and equipment import | $5,000 |
Total: $85,000
Ecosystem Justification: The XMR–Secret Network Bridge
The mining operation is not standalone infrastructure — it is the revenue engine for a Secret Network privacy bridge connecting Monero liquidity to the SCRT ecosystem.
Why this matters for Secret Labs:
Monero is the most widely held privacy coin by users who genuinely require financial privacy. Secret Network is the leading programmable privacy layer in crypto. These ecosystems are structurally complementary but currently disconnected. Earth Network's TFZ operation creates:
- Sustained XMR generation — mining produces native XMR without market purchase pressure
- Bridge throughput — mined XMR flows through a Secret Network-based threshold signature bridge, increasing on-chain volume and validator fee revenue
- XMR liquidity depth — bridge activity deepens DEX liquidity for both tokens
- Validator revenue — increased on-chain activity directly benefits the Secret Network validator set, including Earth Network's own validators
The bridge is the strategic justification. The mining operation is the funding mechanism that makes it financially viable to build and maintain it.
Repayment Structure
Earth Network proposes a revenue-share repayment model:
- Months 1–3: Operations ramp-up, no repayment
- Months 4–36: 40% of net XMR mining revenue applied to loan repayment
- Full repayment target: 36 months from deployment
Mining revenue is expected to compress over the repayment period as next-generation hardware releases. The 36-month window accounts for declining margins while maintaining a realistic repayment path at TFZ power rates.
Collateral
The mining hardware securing this loan represents tangible, recoverable asset value.
10x Antminer X9 units are purpose-built, high-demand ASIC miners with an active
secondary market. In the event of default, Secret Labs holds a perfected security
interest in the hardware, which can be liquidated to recover the outstanding balance.
Unlike software grants, this loan is backed by physical infrastructure with
demonstrable resale value throughout the repayment period.
Assumptions
- XMR price: $330 (current market rate, Feb 2026)
- Power cost: $0.08/kWh (TFZ upper bound)
- Hardware: 10x Antminer X9 @ 1 MH/s each
- Gross daily revenue: ~$280/day ($28/unit)
- Daily power cost: 10 × 2.472kW × 24h × $0.08 = ~$47.46/day
- Net daily revenue:
$232/day ($7,000/month net) - Repayment: 40% of net revenue from month 4 onward = ~$2,800/month
| Month | Cumulative Repaid | Outstanding Balance | Est. Hardware Value | Collateral Coverage |
|---|---|---|---|---|
| 0 | $0 | $85,000 | $62,000 | 73% |
| 6 | $8,400 | $76,600 | $55,000 | 72% |
| 12 | $25,200 | $59,800 | $45,000 | 75% |
| 18 | $42,000 | $43,000 | $35,000 | 81% |
| 24 | $58,800 | $26,200 | $25,000 | 95% |
| 30 | $75,600 | $9,400 | $18,000 | 191% |
| 36 | $85,000 | $0 | ~$12,000 | — |
By month 18, cumulative repayments combined with hardware liquidation value fully
cover the outstanding balance. By month 30, hardware value alone exceeds the
remaining balance nearly 2:1. Secret Labs retains a perfected security interest in
the hardware throughout the repayment period, documented via a formal security
agreement with Earth Network as obligor under the Georgian TFZ company structure.
Note: Revenue projections hold XMR price and network difficulty constant at
current levels. Difficulty is expected to increase as X9 units deploy at scale
across the network, compressing per-unit revenue over time. This is offset in the
model by not assuming any XMR price appreciation, which given Monero's trajectory
is a conservative baseline. The 36-month repayment window accounts for margin
compression while maintaining a realistic repayment path at TFZ power rates.
Risk Factors
| Risk | Mitigation |
|---|---|
| XMR price decline | Operations remain profitable at TFZ power rates down to ~$80/XMR |
| Georgia regulatory shift | TFZ legal structure provides contractual protections; existing tenants create political stability |
| Hardware failure | Maintenance budget included; TFZ has on-site technical services |
Why Secret Labs
Secret Labs is the only grants program with direct strategic interest in this proposal. The XMR bridge increases:
- SCRT on-chain transaction volume
- Validator fee revenue across the network
- Privacy-coin liquidity accessible to Secret Network users
- Earth Network's capacity to continue building governance infrastructure on Secret Network
This is not a generic infrastructure grant. Earth Network is already embedded in the Secret Network ecosystem via validators and the existing MOU. This loan accelerates infrastructure that benefits both parties.
Contact
Braydn Larsen
Founder, Earth Network
Secret Network Validator Operator
Earth Network's prime directive: enable the unfolding diversity of life's expressions. Privacy infrastructure is load-bearing for that mission.