Filecoin Miners Protest Over Projects Poor Economic Model

Monday 19 October 2020, 6:59 PM AEST - 1 month ago

Filecoin miners have protested the unfavorable business model of the Filecoin project from Protocol Labs in what appears to be an industrial action strike.

Per a report from Coindesk, the Filecoin miners proceeded on the industrial action primarily because of the projects rewarding system which aims to release earned tokens months after the operation. This puts a strain on the Filecoin Miners operations as a large amount of FIL tokens are needed to effectively conduct their mining operations.

After more than three years of waiting, the Filecoin mainnet finally got launched on Friday, October 16th. The projects miners compounded the wave of volatility that swept the coins price. About five of Filecoin miners shut down their machines on the grounds that the projects economic model which requires a huge number of FIL tokens is unfair. Among the miners is Zhihu Cloud, a Chinese-based outfit with over 8,000 InterPlanetary File System (IPFS) of which barely 276 was functional as of the Saturday, a day after the project launched. The other four miners as reported saw a significantly lower amount of storage capacity.

With Filecoins model, prospective miners are required to stake a huge amount of Filecoins (FIL) which will serve as the Initial Pledge Collateral before any mining operations can be commenced. Aside from the huge number of FIL collateral required, the reward system was also faulted by the miners who would have to wait about 6 months after a block is built before getting the anticipated coin reward.

In a bid to quell any form of tension and to get its operations to proceed with optimal efficiency, Protocol Labs has said that it would release 25% of the token reward in advance once a miner successfully builds a block, a move Xiaoming Zhan, CEO at IPSFMain said would aid about 80% of their operations.

Filecoin Miners Also Fear The Coins Overpriced Value

Perhaps because of the enormous hype that surrounded the Filecoin project including the coins listing on Kraken and

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