This article provides the latest progress in the Filecoin x BlockScience research collaboration, which marks an important milestone for the Filecoin project.
Filecoin’s network baseline broke through the benchmark target for the first time! This is an important milestone and marks the transition of the network on the path of continued sustainable development.
Since the Filecoin mainnet went live, there have been two occurrences of network-wide storage growth exceeding the baseline. At 05:00 UTC on April 2, 2021 and 00:00 UTC on December 21, 2020, if we measure the effective time through the network, this is a key component of why benchmark casting is so important.
Figure 1: Network power exceeds benchmark
Filecoin storage capacity measured in units of raw bytes (ie, the total storage capacity of the network) reached 3898.8 PiB at 05:00 UTC on April 2, 2021, which is the exact baseline function value at that moment.
The actual effect of exceeding the baseline is that the block rewards issued are now distributed at full speed on the network, because the baseline casting is now saturated!
This incident marked a phase change in the crypto economy of the system as the network shifted from the goal of capacity building to a continuously scalable chain.
In light of this new phase, we are writing two reports on what this means for Filecoin’s mid-term future. In this first report, we explain why it is important to exceed the baseline and provide several near-term forecasts. The second report will delve into the technical characteristics and the importance of achieving baseline casting when looking at data and models.
All charts and forecasts are based on Filecoin public data and can be found in this interactive notebook.
Why baseline crossing is important
In the first phase of “capacity building” (see Figure 2 below), the focus is on creating a sound ecosystem.
This requires the application of the scientific “first principles” of Filecoin’s encryption economy to ensure that the rapid increase in storage provision through incentives can effectively solve the problem of “providing capacity only when needed, or developing applications before capacity”. problem.
When sufficient storage is provided, both storage providers and customers participate in the ecosystem and gain value from the ecosystem.
In the second stage, the encryption economic incentive mechanism began to shift to a more mid-term perspective. The question of whether the chicken or the egg came first has been left behind, and a more forward-looking and efficient perspective has been adopted.
The “critical point” of storage resource allocation happens to be when the Filecoin storage power exceeds the network benchmark-the phase transition has now been achieved!
Figure 2: The various stages of the Filecoin economy (see more in the coin model)
This new phase works completely differently from the previous phase. From now on, network rules will give priority to operators who are more efficient in proofreading and retrieval operations.
In addition, the storage trading market will be an important consideration for direct incentives for participation.
This means that the main incentive measures of the Filecoin network have shifted from building total storage capacity to having a comprehensive and sustainable capacity building phase that is compatible with supply and demand.
In Figure 2 above, the final transition from Phase 2 to Phase 3 will require the participation of all Filecoin participants to make the network more useful.
At this stage, Filecoin has become a diverse and useful network of goods and services, enabling a large community of participants to consolidate the productivity and effectiveness of the network from a long-term perspective.
What is a network benchmark
Filecoin has a unique blockchain economic model, in which minting is performed by mixing simple minting and innovative baseline minting. Simple minting is a standard index form widely used in the cryptocurrency ecosystem, while innovative baseline minting uses mobile And growth goals, and distribute rewards based on the existing network capacity.
Filecoin uses two casting mechanisms, one is independent of network capacity, and the other is constantly adapting to the current reality, which allows Filecoin to perform according to various scenarios (good or bad) excitation.
In good times, when the network is operating as expected, as the benchmark minting releases more minting opportunities faster, the growth will be further increased.
In contrast, when unexpected shocks such as sudden capacity restrictions hit the system, Simple Minting provides reliable minting support, enabling participants to “surmount difficulties”, resist and alleviate the impact of short-term fluctuations, and After the impact, network storage can grow more rapidly.
Specifically, Baseline Minting retains part of the Filecoin issued when the activity is low, so that it will not lose the enthusiasm for network participation after the activity rebounds. At the same time, simple coinage adds an anti-fragility component because it economically motivates miners who operate during economic downturns.
In terms of quantity, 30% (or 330 million FIL) of Filecoin allocated to storage miners is distributed through simple minting, and 70% (or 770 million FIL) is distributed through baseline minting.
However, it is important to note that this absolute share of returns may change over time. In fact, due to the unique power of benchmark casting, the allocated share of simple casting will always be higher than the allocated share of benchmark casting.
Another interesting point is that the current distribution number itself can be changed because there is a 300 million FIL reserve, which depends on the decision made by the community through Filecoin Improvement Proposals (FIP).
In the chart below, we can observe the cumulative rewards of Filecoin over time each day and the two minting functions over time.
Figure 3: Block rewards increase over time
What will happen in the short term
A useful feature of baseline casting is that it allows the network to be predictable when the network capacity is higher than the baseline target.
This is exactly what happened when we predicted the total mining rewards for the next six months. In all forecasts, the fact that the network capacity remains above the baseline target results in that the total FIL to be issued and distributed during this period has no uncertain results at all!
Figure 4: Estimated cumulative block reward in 2021
By observing the daily distribution of these total rewards through graphs, and considering that they represent the amount to be distributed among the existing network forces, it is possible to fully understand the future.
The result of is shown below, which shows the past and future daily block rewards. Please note that most of the decline in daily rewards is due to the weakening of simple mechanisms, and the baseline minting does maintain a constant reward for miners.
has now reached the benchmark. Increasing the mining rewards per unit of storage will require the use of the trading market, which will greatly increase the economic incentives to provide capacity through trading rewards and the Filecoin Plus program.
Figure 5: Past and estimated daily block reward distribution in 2021
Filecoin has passed its network baseline, and the network has undergone a phased transformation. Now block rewards, which can be used to build capacity, are being distributed at full speed!
This marks a shift in incentive adjustments, which has continuously improved the efficiency of providing storage and at the same time increased the rewards for participating in the trading market.
This stage of change and related incentive changes jointly issued a call to action to the community, moving towards the direction of developing more applications and more business models on Filecoin.
Through these activities, we will establish a sustainable transition phase, at this stage, Filecoin has good value and fully applicable phase transition in a wide range of different markets! JIA WEI All-begin-from-here
The development of filecoin technology is an important good news for all those who are engaged in fil mining JIA WEI All-begin-from-here industry, which represents its long-term stable development.
Only when you grow stronger can you have a harvest. Choose fil mining is a wise choice.