Filecoin Miners Claim 25% of Block Rewards after Network Upgrade Goes Live

Saturday 24 October 2020, 12:07 AM AEST - 1 month ago

The latest Lotus 1.1.0 network software upgrade enables Filecoin miners to access 25% of mining rewards immediately with no vesting.

As reported by The Block, Filecoins network lead Molly posted on Wednesday a downloadable Lotus 1.1.0 software upgrade in the projects Slack channel. Participants who want to continue operating in the decentralized storage network would have to comply since this is a mandatory upgrade.

She posted the following in the channel:

You must upgrade before epoch 170,000 (Thursday Oct 22 at ~22:40 UTC), or you will lose sync with the chain.

On Thursday evening EST, the network reportedly reached the block height of 170,000.

FIP-004 Upgrade Enables Miners to Receive 25% Immediately

At block height 170,000, Filecoin activated the FIP-004 change, which it emphasizes its miners to update. As per the post, 25% of block rewards received immediately without vesting will help miners to improve their ability in reinvesting in FIL (the networks native cryptocurrency).

Over the last 24 hours, Filecoin miners produced around 150K FIL. If that rate is applicable under the new system, miners will receive daily block rewards amounting to over 40,000 FIL. While that is good, the challenge that the company would face is how much out of the immediately released FIL are miners willing not to sale on the markets but re-pledge so that they can enhance their computing power.

Upgrade Solves Miner Liquidity Issue

Earlier this week, a couple of major Filecoin miners halted their mining growth plans from the time the networks mainnet officially went live. The miners wanted Filecoins economic model revised since the amount needed to begin mining was hefty. So, they collectively hesitated to add more of the coins to the decentralized storage network to overall slow down the networks growth rate.

For sealing 32 gibibytes (GiB) of data into effective storage mining power, miners require to pledge 0.1901 FIL as collateral under Filecoins current design as per Filecoins blockchain explorer.

Before the implementation of FIP-004, block rewards were not released to miners immediately but vested linearly over a period of 180 days. Now, the rewarding process is more motivating as miners are entitled to receive 25% immediately and wait ...

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