Filecoin miners went on strike over dissatisfaction with the project’s economic model
Miners of the Filecoin project have stopped their equipment to protest against the “unfair” economic model, according to which they must first have a large volume of FIL tokens. Reported by the Chinese crypto-news portal 8btc.
Among the protesters were the five largest Filecoin miners. Zhihu Cloud operates over 8,000 FIL mining devices, but only 276 of them were in operation over the weekend. Other miners in solidarity with Zhihu supplied even less power.
The Filecoin mainnet launch took place last week. Filecoin provides users with decentralized data storage. It is formed by miners who can use publicly available equipment for these purposes. Filecoin also requires them to provide collateral to reduce the risks of default on contractual obligations. Because of this, many miners found themselves in a situation where they purchased large amounts of equipment with borrowed funds and no longer had the money to purchase the required FIL.
In addition, Filecoin distributes block rewards within six months of adding them, resulting in minor payouts for miners in the initial phase. Also, many of them are afraid of a decrease in the price of the token in the future, so they do not want to buy it on exchanges. After the launch of FIL trading last week, the token price rose above $ 100, after which it dropped to $ 40. A number of investors expect further fall.
“All miners have been shut down since the launch of the mainnet. This is not some kind of protest, but we have to turn them off, because we really do not have tokens that we could provide as collateral for mining, “said CEO of ST Cloud Chunghan Lai.
Filecoin has responded to miners’ demands by agreeing to distribute 25% of the rewards as an advance immediately after the block was added. IPSFMain CEO Xiaoming Zhang announced that under the new conditions they are ready to connect 80% of their resources to the network.
Miners expressed dissatisfaction with the economic model of Filecoin long before the launch of the main network and even admitted the possibility of a fork of the project. Chinese miners who have purchased equipment for tens of millions of dollars are especially active in their opinion..
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