Looking at the future value of fil from the filecoin destruction mechanism
On the Filecoin blockchain browser, we can not only see the block height of Filecoin's entire network, the effective computing power of the entire network, and the rewards per block, etc., careful friends will find that there is another category called FIL burn volume. According to the blockchain browser, 4,177,033 FILs have been destroyed.
1. What is token destruction?
Token destruction refers to the permanent removal of the token from circulation. The destroyed token is equivalent to being permanently frozen and can no longer flow into the market.
The destruction of tokens is a common method to create a deflationary model. That is, under the condition of constant value, the smaller the quantity, the higher the price. Therefore, to some extent, it can encourage holders to continue to hold or purchase additional tokens, thereby creating a virtuous circle.
The most common method of token destruction is to punch the token into a black hole address or use a smart contract to destroy it.
The so-called black hole is a bottomless abyss that can only be entered, and as long as it enters, it cannot come out. It is called Eater Address in the world. It is a special address. So far no one has their private key, and it is almost impossible in the future.
The more representative black hole addresses are:
Bitcoin's black hole address: 1BitcoinEaterAddressDontSendf59kuE
The black hole address of Ethereum: 0x0000000000000000000000000000000000000000
There are many certificates in these two addresses. However, due to the characteristics of encrypted certificates, brute force cracking of the private key of an address requires a collection of Bitcoin private keys that are 10 37 times more than the amount of sand on the earth. Then, try one by one, it's harder than reaching the sky. Therefore, the token that enters the black hole address is almost equivalent to being destroyed and permanently removed from market circulation. That is, the token that enters the black hole address, we can directly regard it as non-existent
2. Filecoin destruction mechanism
Regarding the destruction of Filecoin, its first appearance was probably in the article "Creating the Filecoin Economy" published at the end of August.
The sixth section of the article describes Filecoin's new token distribution system in detail, and uses a small amount of space to describe Filecoin's related destruction mechanism. In general, the total supply of 2 billion has not changed, but its specific distribution The way has changed.
Although the part of node mining has changed from 70% to 55%, most of the FIL is still produced by node mining. If dishonest storage or retrieval nodes appear in the IPFS global node group, or appear for a long time Power failure, data damage, loss, or inconsistent data storage capacity, or some other problems that have not passed the time and space certification, the mine's pledge token will be destroyed.
The pledge token is not taken away by the government, nor is it left in a certain system, but is directly destroyed.
In this way, the credit mechanism of FIL destruction has established a good ecological environment. Through the punitive destruction mechanism, the circulation of FIL will become less, more and more people know and apply, and the total amount is less and less, which means that its appreciation space is increasing. The halving and credit destruction mechanism every 6 years has become what we call inflation, which will directly stimulate the price of Filecoin and is a great boon for holders.