Recently, the topic of “fil will reduce production on April 15” has attracted the attention of the community. Many people have expressed concern and asked: “does fil really want to reduce production?”“ Does the production reduction of fil mean that the mining income of fil miners will be reduced “?
Fil is indeed about to reduce production, but the production reduction of fil has little impact on the income of miners’ mining blocks, so the community should not worry too much.
Why does fil reduce production? In order to know the impact of fil production reduction, we need to know why fil will reduce production?
The reason why fil will reduce production is related to the release rules of fil.
Filecoin officials believe that a reasonable release rule can encourage long-term adjustment, guide participants away from short-term speculation, and encourage all stakeholders to work together to improve the long-term use of filecoin network. The core principle and mechanism is stakeholder token release.
Therefore, the official team of filecoin has carefully set up the release mechanism of fil.
For the miners. All mining rewards have to be unlocked in different forms to encourage long-term network adjustment. For example, 75% of the block rewards earned by miners are linearly unlocked within 180 days, while 25% of the rewards are immediately provided to miners to improve their cash flow and profitability.
For saft investors. The fil received by all saft holders is subject to 6-month, 1-year, 2-year and 3-year linear lock-in terms, starting from the start of the network. Most purchased saft tokens are linearly unlocked within 3 years.
– 58% of saft tokens are linearly unlocked within 3 years.
– 5% of saft tokens are linearly unlocked within 2 years.
– 15% of saft tokens are linearly unlocked within one year.
– 22% of saft tokens are linearly unlocked within 6 months.
For the filecoin foundation. The 100 million fils of the filecoin foundation have been linearly unlocked within six years since the network was started.
Yes, protocol lab. The protocol lab’s 300 million fils were linearly unlocked within six years from the start of the network.
From the economic model of filecoin, we can see that the variable released by fil lies in saft (simple agreement for future tokens). Saft can be understood as the share of fil held by early investors of filecoin. According to the economic model of filecoin, the share held by early investors accounts for 7.5% of all shares of filecoin.
The total amount of filecoin is 2 billion, 7.5% of which is 150 million fil. The 150 million fil is released in six months, 12 months, 24 months and 36 months. The release in six months means that the filecoin will be released continuously from the first day to the 180th day (6 months) after the main network goes online, and will be released in the 180th day (6 months), that is, the whole network output will be reduced on the 181st day.
The main network of filecoin was launched on October 15, 2020.
Starting from October 15, 2020, the six-month linear release share of saft phase I will expire on April 15.
After April 15, there will be no release of fil6 in the market, that is, the production of this part of fil6 will decrease.
What is the impact of fil production reduction?
First of all, we need to make it clear that the production reduction of fil is limited to saft, which has no direct impact on miners’ daily block rewards.
However, with the increasing number of miners joining in the filecoin mining, the demand for fil pledge + gas is also increasing. In addition, the daily fil obtained by miners is 25% one-time release + 75% fractional release, which in itself makes the demand for fil huge.
The daily output of fil will decrease again after April 15, and it is estimated that it will decrease by about 43.2%. Then, this may push the supply and demand market of fil to turn to the state of “supply is less than demand” and “supply exceeds demand”.
So, when fil really enters the supply and demand market where supply is less than demand, what magical things will happen?