FIL cut production in October? Read the release rules in one article

According to the official release model, Interplanetary File System will usher in the second production reduction on October 15. SAFT will be released linearly for one year. The number of FIL circulating in the market every day will be reduced by 87,183 compared to the previous period. The storage provider’s area Block rewards will not be affected. With the continuous expansion of daily pledge and destruction, the actual circulation of FIL will become smaller and smaller, which is undoubtedly good for the market.

The crazy rise before FIL’s production cut in April is still fresh in memory. In two months, the release of FIL to the market will decrease again, and the market is about to move again in the near future. The following will introduce the distribution model and distribution model of the interplanetary file system in detail. Release the rules so that investors can analyze rationally.

1. Allocation model

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The total amount of FIL issued is 2 billion, and the distribution is shown in the figure.

15% belong to the Interstellar File System official including Protocol Lab and its team and other contributors, 5% belong to the Interstellar File System Foundation, 10% is used for fundraising (public/private), of which 7.5% is fundraising in 2017 (SAFT ) In the sale, 2.5% will be allocated to the fundraising for future development.

The remaining 70% is all allocated to storage providers, of which 55% is used as current storage rewards, including current block rewards, space race rewards and faucets, etc., and the remaining 15% is used as a reserve fund for future community maintenance The storage ecosystem may add items, such as retrieval.

The specific amounts are as follows:

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2. Release the model

In order to guide participants away from short-term speculation and encourage all participants to work together to promote the long-term development of the Interplanetary File System network, the Interplanetary File System official has formulated a very reasonable release model. The specific release rules are divided into the following three types:

For investors, the SAFT part can choose a lock-up period of 6 months, 1 year, 2 years, and 3 years. The longer the lock-up period, the lower the sales price. For Protocol Labs and Interplanetary File System Foundation, the FIL held by them will be linearly unlocked within 6 years. For storage providers, 75% of all block rewards will be linearly unlocked within 180 days, and 25% will be immediately returned to storage providers to improve their cash flow.

The three types have one thing in common is that they are locked, and they are all linearly released, but the difference is that the SAFT part has different lock-up times, so the linear release time is different. This part accounts for 7.5% of the total interstellar file system. It is also the main reason for FIL production cuts discussed today.

2.1 JUICE

SAFT (Simple Agreement for Future Tokens) was created specifically for the compliance and standardization of token investment and sales. It is a type of securities issued by blockchain developers for financing. Similar to futures, investors must develop on the blockchain network. Only after completion can the corresponding tokens be obtained.

In 2017, the founder of Interplanetary File System, Juan, led the completion of the SAFT Project, a framework for issuance of tokens, and co-founded the ICO platform CoinList with AngelList. With the exclusive launch of many heavyweight projects including Interstellar File System, Dfinity, Mina, etc., CoinList has become one of the most popular ICO platforms in the world.

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2.2 Financing of Interplanetary File System

On August 11, 2017, Interplanetary File System was the first financing project of CoinList. It only took one hour to raise more than 200 million US dollars in financing. More than 2,100 people participated in the investment. The financing passed the review of the US Securities Regulatory Commission. The process is basically the same as the IPO process, and it was the blockchain project with the highest financing amount at that time.

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2.3 Release rules

The interplanetary file system token in SAFT will be released at the block height of 148888, which is the moment when the mainnet is launched on October 15, 2020. Depending on the lock-up time of investors, the interplanetary file system will be released linearly on a block basis. For example, if the investment period is 12 months, then FIL will be unlocked block by block starting from the height of 148888 block, until 12 months later (about 1051200 block height) all unlocked.

The specific release of the interplanetary file system in SAFT is shown below. Among them, 58% of investors choose to release it over a three-year period. It can be seen that most early investors are more optimistic about the long-term value of the interplanetary file system.

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When the block height was 265200 on November 24, 2020, the official adjustment of the release rules was as follows:

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According to the code summary, the specific rules for the total FIL release including SAFT, Protocol Lab, Interstellar File System Foundation, etc. are as follows (not including the block reward unlocking of the storage provider):

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Before April 15, 2021, the daily release of FIL was 648,138.65. After April 15, the daily release was reduced by 283,079.71. When SAFT expires on October 15, the daily release will be again Reduced 87182.77 pieces. By analogy, the specific release amount is as follows:

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Since October 15, 2021, FIL12 will no longer be released on the market, and the daily FIL release will be reduced by 23.8% compared to the current one.

3. Market circulation

At present, the increase in the circulation of the interplanetary file system market depends on release, block reward unlocking and pledge return, while pledge and destruction will reduce the market circulation. The calculation formula is as follows:

Market circulation = current circulation + release + block reward unlocking + pledge return-pledge-burn

Pledge: The interstellar file system pledge mechanism is divided into three types: initial pledge, block reward pledge and storage transaction pledge. The initial pledge requires that the storage provider must pledge for each sector of the package; the block reward pledge is 70% of the block reward, which reduces the initial pledge requirement; the storage transaction pledge establishes an incentive mechanism between the storage provider and the user .

Destruction: The destroyed interstellar file system will directly enter the black hole address f099, and will no longer be able to flow into the market. The FIL destruction mechanism is divided into two types: when the storage provider has a consensus error or storage failure, the system will punish; the other part is the consumption of gas on the chain.

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(Source: Flying Spur Browser filscout.com)

Flying Spur browser filscout.com provides a FIL circulation analysis function . It can be clearly seen that since the expiration of FIL6 on April 16th, the number of circulated FIL on the market has been significantly declining, and the market circulation has been deflationary. It wasn’t until the gas fee was reduced around May 24 that the market circulation gradually increased.

After the Hyperdrive upgrade on July 1, although the gas consumption dropped again, it also ushered in the enthusiasm of storage providers to package sectors. The daily computing power growth rate increased by 60% compared with the previous period, and the initial pledge increased, so the market was circulating Volume growth slowed down.

Since August, the FIL circulation has increased by an average of 58,126 pieces per day. After the expiration of FIL12 on October 15, the daily flow of FIL to the market will decrease by 87,183 pieces. That is, the FIL circulation is expected to decrease by 29057 pieces per day, and it will enter a downward trend again.

With the continuous improvement of the interplanetary file system ecology, the daily computing power of the entire network continues to increase. On the one hand, after the computing power of the entire network exceeds the baseline requirement, the reward output will decrease. On the other hand, the total initial pledge and gas consumption will continue. Increase, or will push the FIL supply and demand market to a state of short supply.

(Reminder: This article is only for academic discussion, not as investment advice.)

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/fil-cut-production-in-october-read-the-release-rules-in-one-article/
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