Filecoin newbies are curious to know about the strategy followed for offering all the tokens. They further ask as to under what system all the tokens will be offered.
Filecoin tweeted: “Congratulations to the Filecoin community, miners, and builders for passing 1 exbibyte of storage capacity.”
When trying to get a technical understanding of the crypto economics of (FIL) Filecoin’s native token, there was a recent discussion about the use cases for Filecoin, reward locks, token distribution, FIP changes and other topics.
Colin Evan, Ecosystem Lead at Protocol Labs and ZX, Cryptoeconomics Lead at Protocol Labs had a discussion with Tom Shaughnessy, Chain Reaction Host explored the minting mechanism – both simple and baseline minting, storage pledges – initial pledge and consensus pledges; issuance, reward locks, token distribution, FIP changes etc.
There is also a Podcast in which the FileCoin has been exhaustively discussed. Full interview transcripts are also made available for users to discuss the details.
Filecoin (FIL) 30% and 70% Structure
ZX points to how simple minting is similar to traditional blockchain projects. In this process, when there is lowest participation the throughput is high and there is a good short-term incentive is good for the miners. In terms of baseline minting, the rewards will differ based on how much storage is there on the network. To get rewards, the baseline storage amount should be reached.
In this regard, Sina Estavi, CEO of Bridge Oracle tweeted: “Filecoin (FIL) have a dual structure. Reportedly 30% on simple mining ensures miners earn something and the 70% is baseline mining.”
It is under the control of the community to decide on how fast or slow the minting process will be. With the dual incentive process the community is also able to collaborate and compete.
The network as a 30% and 70% model to ensure that the power in the network does not decline. They are looking at miners to be there. They are looking to have participants who are willing to stay here in the long term.
Filecoin (FIL) Token Holders
The FIL holders provide for transactions and liquidity to put capital in to production. There are also ecosystem partners who have a role in making things work. By virtue of the design everyone are made to work with each other to achieve a common goal. And, every participant would benefit from that.
The storage that should be made and the dynamics of the miners in the network makes all the difference. The basic goal is for consensus, security and storage safety.