The Filecoin network has a unique economic design, which can keep the rewards between participants consistent and reward Filecoin miners for their effective work. A key component of the Filecoin economy is block rewards, which are subsidies for storage miners to provide reliable and useful storage capacity and maintain the Filecoin blockchain.
Most blockchains use cryptocurrency tokens to reward miners who produce blocks to successfully mine new blocks in the chain. Filecoin is no different in this respect. The Filecoin blockchain grows through successive rounds of leader elections. Any miner who wins the leader election and is therefore selected to mine a new block will receive a certain amount of Filecoin tokens as a block reward.
But Filecoin's block reward system is unique, whether it is in determining who wins the block reward or the incentive method used in the process of obtaining the reward. This improves the usefulness of the Filecoin network to miners and customers and ensures its long-term health. Let us see how.
For miners: Earn block rewards through useful work V丨hugoschan
Storage computing power is the engine of Filecoin blockchain. Miners obtain storage computing power by allocating hard disk space to the Filecoin network through a process called "sealing". Sealing divides the storage space into multiple sectors dedicated to storing data on Filecoin. The more storage sectors miners add to the network, the more client data they can store, and the more Filecoin they are eligible for.
Miners obtain the right to participate in leader elections by providing storage functions for the network. Block rewards are awarded based on the storage power that Filecoin storage miners can provide based on the quality multiplier of different transaction types in their storage.
Miners receive an overall reward that is proportional to the quality adjustment computing power; miners who contribute 1% of the network's overall quality adjustment computing power are expected to receive about 1% block rewards over time.
Unlike traditional proof-of-work blockchains that require miners to perform computationally intensive but useless tasks to win block rewards, Filecoin miners obtain block rewards by proving that they provide reliable and useful storage for network clients. . Anyone can contribute storage resources to the network and start receiving rewards immediately. In addition, miners are greatly encouraged to store useful data-cryptoeconomics greatly subsidizes the storage of actual customers on the Filecoin network. This incentivizes legitimate use cases and emphasizes Filecoin's core mission of storing humanity's most important information. Therefore, for example, data sets that help us study the universe or cure diseases can be given more weight on the Internet.
For customers: use block rewards to subsidize reliable storage
The Filecoin network is designed to provide reliable and useful storage for clients. In traditional proof of work, blockchain miners can choose to go offline at any time. In this case, they no longer earn large rewards, but they are not affected. In contrast, Filecoin miners must provide continuous storage services to their customers in accordance with their contractual agreements. If Filecoin miners go offline while signing a contract with a customer, it will harm the value of the customer's service and damage the health and reputation of the network.
In order to incentivize miners to provide stable services, the Filecoin network requires miners to use their block rewards as collateral. If the miner terminates the contract prematurely or goes offline, the miner will be punished and the collateral will be referred to as a "substantial reduction." In this way, the Filecoin protocol uses block rewards, not only to incentivize miners to store data in the first place, but to do so in a durable way and keep their promises to customers and the network.
Storage customers have the right to share the products and products of the Filecoin network because they incentivize miners to meet customer needs. It is also in the best interest of storage miners to meet demand and build applications and tools on top of Filecoin to better meet customer needs.
For the network: based on network tool mining block reward V丨hugoschan
Many blockchains incentivize early adoption by applying exponential decay models to the rate at which miners receive block rewards. This means that in the early stages of the blockchain life cycle (participation and utility are usually the lowest), and then rapidly decline, mining can be profitable exponentially. This model encourages storage miners to make excessive investments in hardware as quickly as possible during the closed phase of mining, with almost no consideration of the reliability and practicality of their storage. In addition, this will result in most network subsidies being paid based solely on time rather than on the actual storage (and therefore value) provided to the network.
To encourage consistent storage enablement and long-term storage investment, rather than just rapid sealing, Filecoin introduced the concept of network benchmarks. The concept of "network time" is defined based on the progress made by the network in meeting its benchmarks. Instead of casting tokens purely based on elapsed time, the reward is expanded based on how much "network time" has passed. This preserves the shape of the original exponential decay model, but can soften it in the first few days of network establishment. The overall result is that Filecoin's rewards for miners are more closely matched with the utility they and the entire network provide to customers.
Specifically, a hybrid exponential casting mechanism is introduced, in which part of the reward comes from simple exponential decay, that is, "simple casting", and the other part comes from the network baseline, that is, "baseline casting". The total reward for each period will be the sum of the two rewards. With this mechanism, mining Filecoin will be more profitable. Simple casting allocation will reward early miners disproportionately and bring back pressure to the impact. As more value is created for the network, the baseline mining allocation will mine more tokens. When the network can release greater potential, more tokens will be minted to facilitate greater transactions. This will lead to an increase in network value creation and reduce the risk of excessive coinage.
There are many functions that can make passing baselines more efficient and economical, and release more baseline minting. The community can unite to achieve the following goals:
●Higher performance copy proof algorithm, with less chain footprint, faster verification time, cheaper hardware requirements, different security assumptions, so that the service life of the sector is longer, and does not need to be resealed Perform sector upgrades.
●A more scalable consensus algorithm that can provide greater throughput and process larger quantities with a shorter termination time.
●More trading functions enable the industry to last longer.
Finally, it is important to note that although block rewards can motivate people to participate, they cannot be viewed as resources to be utilized. This is a common subsidy pool that can seed and expand the network to benefit the economy and participants.
in conclusion
Block rewards are one of the many encrypted economic structures that Filecoin uses to fulfill its mission of establishing a reliable and useful storage economy, where participants convert raw materials into valuable storage-related goods and services. Through a unique block reward structure, the Filecoin protocol aligns the incentives of miners and customers with the long-term utility of the network.
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