(:IPFSKG) After three years of development, one of the most anticipated projects in the encryption field, the Filecoin mainnet, started operation on October 15 last year. At the beginning of the ICO, eight venture capital companies including Sequoia Capital and DCG Group received 257 million U.S. dollars The venture capital investment has attracted the attention of countless investors, so that everyone has high hopes.
In this long waiting time, there are disappointments and hopes. The mainnet line finally gave most people a sigh of relief, and they would send out a feeling of "finally online!" If you are a fan of Filecoin (FIL), then let us understand the fundamentals of Filecoin.
Why distributed storage?
In addition to decentralized financial services (DeFi), which has great hopes for landing, another expected practical application in the future may be a decentralized storage system based on blockchain technology. Although these projects have achieved initial results, major breakthroughs are still needed.
The explosive growth of data volume has made the corresponding solutions increasingly loud. From websites to videos, animated images (GIF), high-definition photos, local data and various archive backups, more and more data are stored online Cloud storage so that you can access it at any time.
After careful consideration and design, the official adopted a variety of methods to control the activity of FIL in the initial stage of the project and maintain the stability of the FIL token price:
1
(:IPFSKG) Block reward release mechanism
The distribution of block rewards is not arbitrarily set. The official has done a lot of analysis for this, and formulated a fine mechanism to ensure the smooth issuance of the token, and it will not appear that a large number of token unlocks suddenly shake the token price. situation.
In the initial stage, the official setting for the distribution of block rewards was that after a 20-day lock-up period, the full amount entered the 180-antenna release period.
Later, because this method puts too much economic pressure on storage nodes, the official stopped modifying the mechanism.
The new plan (that is, the currently adopted plan) cancels the 20-day lock-up period, and at the same time 25% of the block rewards are released immediately, and the other 75% is set to 180 antennas.
This fine release mechanism prevents storage nodes from selling and realizing a large number of FIL block rewards obtained in a short period of time in the market, forming a dilemma that the price of the token will fluctuate greatly; at the same time, it also prevents speculators from gaining profits after short-term speculation. No longer participate in the establishment of Filecoin ecosystem.
2
(:IPFSKG)Venture Investment Institution Token Release Mechanism
In 2017, the Filecoin project stopped public and private offerings, and the number of tokens participating in it was 200 million (10% of the total FIL).
These 200 million tokens will not be 100% released immediately after the mainnet is launched, but will have a linear release period of 6 months to 3 years (the detailed release time depends on the investment status).
This prevented early venture capital institutions from selling FIL in large quantities in order to quickly recover costs, which in turn caused FIL prices to fluctuate significantly.
3
Network baseline mechanism
Different from the simple decay mechanism of other blockchain rewards, Filecoin invented and adopted a hybrid decay mechanism: when the effective computing power of the entire network does not reach the official benchmark of effective computing power, the block reward will not be sufficient freed.
In detail, 30% of the block reward has been released in full. Another 70% of the block rewards will gradually increase and release as the effective computing power of the entire network approaches the baseline; when the effective computing power of the entire network exceeds the baseline, 70% of the block rewards will be released in full.
The (:IPFSKG) network baseline mechanism prevents the excessive FIL circulation in the early days and the oversupply which causes the price of the token to fluctuate greatly. It also promotes the block reward obtained by the storage node to match the storage value invented for the Filecoin network.
4
Set up a market maker
The price of FIL token at the initial stage of the project’s launch may be the most unstable. In order to prevent the price of the token from fluctuating too much in the initial stage of the launch, Filecoin officially established a market maker system on trading platforms such as Huobi, and stopped market making when necessary (that is, buying and selling FIL on the trading platform to provide market activity).
In the early days, being active helps to avoid malicious price control, to ensure that small transactions will not cause excessive price fluctuations, and to help prices converge among various trading platforms, thereby avoiding speculative arbitrage trading opportunities.
(:IPFSKG) Interstellar Alliance File System IPFS is a global, peer-to-peer distributed version of the file system. The IPFS project is developing steadily and is in the early stage of the long-term plan. Faced with everyone opening the entrance door, any party has many opportunities to participate. It is a good time for investors to enter the market!