This article takes you to understand what is the Filecoin network baseline

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1 Initial economic model

The total amount of FIL is 2 billion, of which 15% is held by Protocol Labs, 5% is held by the Filecoin Foundation, 10% is used for ICO, and the remaining 70% is mining output. See below:

• Protocol Lab: 15%, 300 million FIL, releasing 50 million per year, an average of 1,369.89 million per day;

• Filecoin Foundation: 5%, 100 million FIL, 50 million FIL release period is 6 years, release 16666666 per year, an average of 45662 per day;

• ICO (Eight Venture Capital Institutions): 10%, 200 million FIL, released in 3 years;

• Miners: 70%text

2 Existing economic models

Filecoin's existing economic model has not changed the distribution ratio of FIL.

In terms of release cycle, Protocol Labs, Filecoin Foundation and ICO are synchronized for six years.A division has been made in 70% of the allocated miners. Originally 70% were miners’ mining (storage/retrieval) output, but the current miner division is 55%, and the remaining 15% is reserved for future minerals (forecast is maintenance). Under this split operation, it means that there are only 1.1 billion FILs that miners can mine.Therefore, currentlyThe calculation formula for the daily release of FIL is:418471×(55/70)≈328,800 piecesThe ratio of the current distribution ratio to the historical distribution ratio = the current distribution ratio ÷ the historical distribution ratioInitial daily distribution amount × proportion = existing release amount

However, at present, the entire network (as of 10:30 on January 21, 2021, the daily release of about 266,100 FILs) has not reached the daily release of 328,800 FILs.

The reason for this is mainly because Filecoin was officially launched on October 12, 2020 (3 days before the mainnet launch) byThe original 1EiB baseline network standard (200% annual growth) is adjusted to 2.5EiB (100% annual growth)first level title

2. Simple currency production and baseline currency production

The release of FIL is divided into two parts: simple currency production and baseline currency production. Filecoin introduces a mixed index currency production mechanism, part of the rewards come fromsimple exponential decay, that is, simple currency production (simple currency production means that even if the computing power of the entire network does not reach the benchmark value of 2.5EiB, it is still available in one dig, and remains unchanged); the other part comes fromnetwork baseline, that is, the baseline currency production (floating with the computing power of the entire network).

1 Simple currency production

Before joining the network baseline, the release of Filecoin's total currency output is shown in the figure below. After adding the baseline, we call 30% of the total currency production as simple currency production.

The simple coin production is to ensure that when the computing power of the entire network does not reach the network baseline, miners can still get part of the FIL rewards.

2 Baseline coin production

FIL is a limited resource, just like consuming any public pool resource, the generation rate of FIL in the network should be controlled to maximize the net benefit to the community. The purpose of baseline currency production is to:

• Encourage more storage participants to join the Filecoin ecosystem;
  

• Maintain a relatively stable flow of block rewards for a longer period of time based on network utility valuations.

3 Is the baseline coin production immutable?

it's not true!Baseline coin production is to increase the release amount with the increase of the computing power of the whole network。

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3. How to calculate the daily release of FIL

As mentioned above, according to the existing economic model, the release of FIL is 328,800 pieces per day. Among them, the simple production currency releases 98,640 FILs per day, and the baseline production currency releases 230,160 FILs per day. According to the current situation of the entire network computing power of 2.0EiB (below the baseline of 2.5EiB), how much FIL will actually be released every day?From the previous article, we can know the relationship between the current effective computing power of the entire network and the baseline of the entire network. Based on this, the daily release of FIL can be calculated through the formula.The formula for calculating the release of FIL per day:Daily output of baseline value x 30% + daily output of baseline value x 70% x current computing power of the entire network ÷ baseline valueThen, according to the current effective computing power of the entire network of 2.0EiB, it can be concluded that:32.88×30%+32.88×70%×2÷2.5=282,768 FIL/dayHowever, when the computing power of the entire network is 2.0EiB, the daily release of FIL is 266,139. In fact, this is due to the actual release of FIL every day exceptIn addition to being affected by the computing power of the entire network (real-time floating), it is also affected by factors such as sector pledge, block explosion speed, and empty blocks (actually not so many blocks are produced), so the actual daily release of FIL in the entire network will be less than the theoretical release。Because 30% of the simple production currency is fixed (even if the entire network computing power is 0, the simple production currency is still 30%, that is, 32.88*30%=98,640 FIL), according to this, it can be calculated that the effective computing power of the entire network in 2EiB The quantity of the baseline production currency under the force, that is, the baseline production currency = 28.2768-9.864 = 184,128 FIL. See the table below for details:

In summary, the computing power of the entire network fluctuates in real time, and with the passage of time, the addition of miners and the continuous development of IPFS/Filecoin technology and ecology can be predicted,The effective computing power of the entire network will be higher and higher, the more coins produced in the baseline, the greater the rewards for miners. Moreover, when the effective computing power of the whole network is greater than the baseline, according to the Filecoin economic model, the FIL that has not been released before will also start to be released. At that time, the output of the Filecoin network will be higher than the release amount of the total supply curve, and the miners of the whole network will also There are more rewards. Well, thisDoes it also mean that the single T income of miners in the entire network will also increase?? In the next issue, Shensuan Mining Pool will answer this question for you.