Filecoin has another wave of presence.

On the morning of March 18, FIL once rose to more than US$95, which doubled from 6 days ago. The 24-hour transaction volume reached US$4.402 billion, surpassing ETH.

If the Filecoin mainnet launched on October 15th last year attracted the attention of the entire blockchain circle, then the surge in FIL currency prices will undoubtedly regain the confidence of miners and investors.

And all this is mainly due to Filecoin's economic model.

FIL Why does it soar?

Filecoin's economic model strictly controls the release of FIL, and FIL on the market can be said to be in short supply.

It is precisely because of the limited circulation that the price of FIL has been well maintained. Since the Filecoin mainnet was launched, until February this year, even if Bitcoin led the market to fall sharply, the price of FIL was still "as stable as a mountain".

Since last week, FIL's currency price has changed from its previous "stable" characteristics and began to rise rapidly. On March 12, the FIL price was around US$42, and on March 18, the currency price rose by more than US$95.

Along with the surge in FIL, there are rumors that "FIL will cut production on April 15". Is FIL really going to cut production like Bitcoin? This starts with the distribution and unlocking rules of FIL.

The total supply of FIL is 2 billion. These FILs are mainly distributed to these types of ecological participants, namely Protocol Lab and Filecoin Foundation (400 million, accounting for 20%), early investors (200 million) , Accounting for 10%), miners (1.1 billion, accounting for 55%), reserved (300 million, accounting for 15%).

Among them, the FIL in the hands of the Protocol Lab and the Filecoin Foundation will be linearly released within 6 years, that is to say, this part of the FIL will unlock 5.56 million pieces every month.

The FIL in the hands of early investors, except for the 50 million temporarily reserved, the remaining 150 million FIL has 6 months (22%), 12 months (15%), 24 months (5%), 36 months ( 58%) linear unlock period, FIL with different unlock periods release 5.5 million, 1.88 million, 310,000, and 2.42 million tokens each month.

The FIL allocated to miners is gradually released at 30% (slowly reduced over time, halved every 6 years) and 70% at baseline (the release standard is more complicated), and is gradually mined by miners.

Filecoin was launched on the mainnet on October 15th last year, so for the release of FIL, it is the first important time node. Six months after the mainnet was launched, that is, on April 15th this year, early investors press The FIL that has been linearly released within 6 months will be released.

This means that after April 15th, although the circulation of the whole network will increase, the daily increase of FIL will be greatly reduced. Therefore, what ushered in April 15 is not a reduction in production, but a reduction in FIL release.

On November 24 last year, Filecoin officially adjusted the amount of FIL released by early investors, foundations, and protocol laboratories. According to online information, after April 15, the daily release of FIL will be reduced by approximately 280,000 pieces.

Compared to the original release, this is not a small proportion. The decrease in FIL release is good for the currency price. Perhaps it is for this reason that investors in the secondary market may be absorbing funds in advance, causing the currency price to be pushed up.

Another reason for the increase in FIL prices is likely to come from Grayscale. On March 17, Grayscale Investment launched FIL trust products. Every time a traditional investor buys a FIL trust, it means that part of the FIL in the market will be absorbed by Grayscale and the circulation will decrease.

At the time of writing, Grayscale Trust held 16,000 FIL. Although the open interest is not large, this opens another buying channel for FIL. In addition, Grayscale FIL Trust has a great uplifting effect on market sentiment.

FIL rise what impact does it have on miners?

The rise in FIL has revived the miners and computing power market.

Browser data shows that Filecoin's entire network computing power rose rapidly in March, reaching a six-month high, and the mining behavior of miners was stimulated.

Many cloud computing platforms have seen price increases. According to information from Smart Technology, in January this year, the price of 1T full storage computing power in the market was around 4,000 yuan, and on March 14 and March 17, it rose to 5,000 yuan and 8,000 yuan, respectively.

The increase in the price of FIL has increased the income of miners from mining, but at the same time their demand for collateral for FIL is also rising.

Miners have a shortfall in demand for pre-mortgage FIL, which also drives the FIL lending market. Because of the lack of currency, many channels have begun to actively look for FIL spot. The demand-side lending rate is as high as 40%.

However, compared with before, the pressure of miners for FIL spot demand has been reduced. Since the Filecoin mainnet went live for nearly half a year, the version has been updating and iterating. Among them, some FIPs that help reduce the pressure on miners have been implemented or proposed.

FIP-0004 allows the direct release of 25% of the blockchain rewards of storage miners, which improves the liquidity of the mining output of miners. -FIP-0010 puts WindowsPost verification under the chain, and the performance on the Filecoin chain has been improved. -In addition, FIP-0013 proposes to submit ProveCommitSector in batches to reduce congestion on the chain. It is still in the draft stage.

These improvements have reduced the mining cost of miners to a large extent. The browser information shows that the gas fee has been greatly reduced at present.

Taking 64 GiB sector consumption as an example, at peak times, miners have to pay 7 FIL of gas per T of computing power, which means that a miner with 200T of computing power will consume 1,400 FIL on gas every day. And now this number has been reduced to 3 FIL/T.

However, the Filecoin mining market is, in the final analysis, a market of large households and clusters. Mining needs to compete in scale, capital, operation and maintenance capabilities. As a miner in the Filecoin community said, it is necessary to reach at least 200T or more of computing power to achieve a daily burst of blocks, and there is still no room for small miners to survive.