It is a very complicated time for Filecoin. The project did his official debut on the mainnet last October 15, but immediately found itself having to take into account the protests of the miners deriving from a reward mechanism which would basically make the business profitable only for those with plenty of funds, cutting out everyone else. A modus operandi which has consequently led many miners to reduce their storage capacity to just 24 hours after the event. With serious image damage.
What is happening to Filecoin?
Filecoin is a project which has aroused great interest from the beginning, so much so that it has attracted people over 200 million dollars in the Initial Coin Offering (ICO). The resulting centralized Dropbox allows miners to earn tokens, FILs, by renting unused space on their computers to users to store data protected by encryption and distributed online in chunks.
The project was launched by Protocol Labs, making it immediately apparent problems which now risk to literally sink him.
Filecoin: the 8btc.com report
An elaborate report made known what is happening d 8btc.com, according to which five of its major miners had to shut down a significant portion of their machines to overcome the drawbacks associated with the project's economic model. Who requires a significant amount of FIL tokens in order to initiate mining.
While Zhihu Cloud only put 276 of the more than 8 InterPlanetary File System (IPFS) mining machines to work, the other four mining companies involved generated even less storage mining power. Raising the idea of a real strike.
What is the problem that has emerged?
The problem reported by the miners is to be seen in the fact that a large number of FILs must be guaranteed in order to start the activities. Currently, in order to have it available, two options can be used:
- earn token rewards and place them as collateral, knowing that however they will be released during the six months following the construction of a block, a time considered too long;
- buy tokens at exchanges. However, this is a move which risks turning into a real boomerang. In fact, many experts currently believe that Fil is highly overrated, which adds to the hefty transaction fees.
The company's response to miners' concerns
The response expressed to the concerns of the miners took the form of one partial revision of the project. Filecoin has in fact opted for the FIP-004, i.e. the early release of 25% of token rewards in correspondence with the construction of a block on the blockchain.
A move which, however, was judged inadequate from the other party. According to Xiaoming Zhan, CEO of IPSFMain, this revision could ensure 80% of the mining capacity. Too little considered how it is necessary to be an active part of the system very expensive hardware, in the tens of thousands of dollars per device. So much so that in the meantime it has pushed some miners, in particular the Chinese ones, to threaten the fork.
Meanwhile, after the initial promotion work conducted by FOMO, which had raised FIL's price to $ 240, its price declined rapidly. It currently stands at just under $ 35, but if the problems continue, it could sink even further. Practically marking the end of a very ambitious design.