Released Filecoin Mining Structure May Eliminate 80% Miner Makers
Filecoin storage network has revealed the details of its cryptoeconomic structure in a report titled Engineering Filecoin’s Economy, in which three key points are introduced: punishment mechanism, amount of mining release, and pre-pledge ratio.
The revealed economic model is extremely harsh for miners as it has extremely low mining release, ultra-high pre pledge, and severe penalty for technical errors. The superposition of these factors will be a fatal blow to a large number of mining machinery manufacturers in the industry. 80% of them will face the elimination after the mainnet launch.
Unlike bitcoin and Ethereum’s deflationary casting model (the decreasing amount of additional issuance), Filecoin adopts a “block reward benchmark casting”. This model will reward miners only 30% of the coins they mine in the initial stage, and 70% of the coins will be released after the network’s effective computing power reaches a certain scale.
Besides, the official has also set a lock-in period for 20 days for the mined FIL, and then it will be released linearly every day in 180 days. Such a regulation makes the dream of some miners who want to get excessive returns in the initial stage come to nothing. It also means that it is a blow to the investors who want to recover their cost in a short period (two months), and it also gives the miner makers promised return and return cycle to investors potential dangers.
It is important to maintain the security and stability for the distributed storage network. If the miner node fails to do its due diligence due to its evil or negligence, it will be severely punished.
For example, when a node publishes two or more blocks in a block out cycle and meets the penalty conditions defined by the expected consensus, it will confiscate all the mortgages of the nodes suspected of attacking the network, and deduct all existing computing power, that is, FIL of all pre and post pledge accumulated by miners will be cleared as well as the accumulated effective computing power.
Pre-pledge, as long as one’s computing power is growing, he must constantly “charge” FIL into the mining machine, otherwise his effective computing power will not be able to increase.
Judging from the “Space Race” of Filecoin, there are more than 360 active miner nodes. For the whole market, there is bound to be a process of integration and centralization. A large number of small mining machine manufacturers with will be gradually squeezed into living space and finally leave. Only a few mines will be left. Therefore, 80% of the miner manufacturers in the market are will be eliminated.