A Quick Look at the Filecoin FIP0036 Proposal

Against the background that the increase in computing power of the Filecoin network has slowed down significantly in recent months, FIP0036 is a proposal for some solutions to the situation.

For the current situation, on the one hand, the entry of new computing power has slowed down, and on the other hand, early storage providers have begun to expire. In recent months, the net inflow of FIL supply is about 500,000 per day, and that month is 15 million FIL’s addition. In April 2021, more than a year ago, this data was about 120,000 per day.

The most direct impact of the slowdown in the speed of storage provider staking is the reduction in the amount of FIL locked up. In recent months, the daily new computing power has only been around 15PiB, that is, only tens of thousands of FILs are pledged to the network every day and lots of FILs are released by early storage providers due to expiration. The imbalance between circulating supply and demand becomes serious.

Suppose the community does nothing and the newly added computing power continues to grow slowly. In that case, the network may soon see the computing power that has been withdrawn due to expiration exceeds the newly added computing power, resulting in a decline in the total computing power. If the expired computing power is not renewed, it means that an additional 300,000 FIL will be released every day, and the net inflow of FIL tokens may reach 800,000 per day. Supply and demand will be further out of balance.

Coupled with the current global macroeconomic recession and stricter policies, this winter may be so long and painful that some storage service providers aren’t able to survive.

Content of FIP0036

The main content of the proposal is to extend the pledge sector duration time of storage service providers from the original 180-540 days to 1-3.5 years. The longer the pledge period is, the more pledge coins are required, and the higher the percentage of income that can be obtained simultaneously. This move is critical for the next phase of network growth and countering global macroeconomic pressures.

The FIP0036 proposal is not for lock-up, but for long-term network participants to obtain higher returns. At the same time, the release pressure of network sector expiration is relieved.

The team at Filecoin is working on many projects, from FVM virtual machines to retrieval, data computing, and financial applications. With more applications of Filecoin releasing and landing, these pressures will gradually reduce and disappear.

Filet×FIP0036

As same as FIP0036, the starting point of the Filet platform is also committed to contributing to the Filecoin community and ecology. To achieve this, Filet provides staking options for Filecoin holders to buffer the bear market and the global economic downturn.