Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)
The Filecoin network has a unique economic design that aligns incentives among participants and rewards Filecoin miners for efficient storage work. A key component of the Filecoin economy is the block reward, which incentivizes storage miners to provide reliable and efficient storage capacity and maintain the Filecoin blockchain security.
Most public chains reward block producing miners for successfully mining a new block on the chain. Filecoin is no exception in this respect. The Filecoin blockchain operates through continuous competition for packaging rights. Any miner who wins the packaging rights and is therefore selected to mine a new block will receive a certain amount of Filecoin Token as a block reward.
But Filecoin's block reward system is unique, both in the way it determines who wins the block reward, and in the incentives used in the process of earning the block reward. This improves the loyalty of Filecoin network miners and customers and ensures its long-term healthy development. Let's see how."secondary title"For miners: earning block rewards for useful work
Storage power is the foundation of the Filecoin blockchain. Miners dedicate hard disk space to the Filecoin network through a network called
seal
Miners obtain the right to participate in the competition for packaging rights by contributing storage capacity to the network. Block rewards are obtained based on the storage capacity that Filecoin storage miners can provide and weighted by the quality multipliers of the different transaction types they store.
Miners receive block rewards proportional to their quality-adjusted power; a miner contributing 1% of the overall quality-adjusted power of the network can expect to earn approximately 1% of block rewards over time.
Unlike traditional proof-of-work blockchains, which require miners to perform computationally intensive but otherwise useless tasks to earn block rewards, Filecoin miners earn block rewards by proving that they provide reliable and useful storage to earn block rewards. And anyone can contribute storage resources to the network and start earning rewards immediately. In addition, the system incentivizes miners to store more important data that is beneficial to human beings. Data sets for studying the universe or treating diseases can gain more weight on the network.
secondary title"Slashing"For Clients: Incentivizing Reliable Storage with Block Rewards
In order to incentivize the stable service of miners, the Filecoin network requires miners to pledge their block rewards as collateral. If the miner terminates the contract early or goes offline, the miner will be punished and the collateral will be destroyed. This process is called
. In this way, the Filecoin protocol uses block rewards to not only incentivize miners to store data in the first place, but also to store data durably and maintain commitments to clients and the network.
Storage clients have the ability to share the products and services of the Filecoin network, because miners are motivated to meet the needs of customers. It is also in the best interests of storage miners to meet demand and build applications and tools on top of Filecoin to better serve customer needs.
secondary title"For the network: minting block rewards based on network utility"Many public chains incentivize early adoption by employing an exponential decay model for the rate at which miners earn block rewards. This means that mining is exponentially profitable in the early stages of the blockchain, when participation and efficiency are often at their lowest, and profits drop off quickly thereafter. This model encourages storage miners to invest in hardware in the early stage to store on-chain as soon as possible, with little regard for the reliability and practicability of their storage. Additionally, this would result in the payment of most network subsidies being based solely on time rather than actual storage provided to the network."In order to encourage people to provide storage and invest in long-term storage, rather than just providing storage in stages, Filecoin introduces the concept of network baselines. Based on the progress of the network towards the baseline, a"network time
the concept of. Block rewards are not based purely on elapsed time to mint Tokens, but on"network time"How much to expand. This preserves the form of the original exponential decay model, but dilutes it in the early stages of the network. The overall result is that Filecoin rewards miners closer to the value they, and the entire network, provide to clients."Specifically, we introduce a hybrid exponential minting mechanism, where a portion of rewards come from simple exponential decay, namely"simple coinage
, and the other part comes from the network baseline, namely
baseline coinage
. The total reward will be the sum of these two rewards. Under this mechanism, the profit of mining Filecoin should be higher. Simple minting distribution rewards early miners disproportionately. The baseline minting allocation mints more tokens as it creates more value for the network. When the network can unlock greater potential, more tokens are minted to facilitate larger transactions. This should result in more value being created for the network and reduce the risk of minting Filecoin Tokens too quickly.
There are a number of features that will make rebases more efficient and economical, unlocking more base minting shares. The community can come together to achieve these goals together.
Finally, it is important to note that while block rewards can incentivize participation, they cannot be exploited as a resource. It is a common incentive pool for the purpose of network development, benefiting the economy and participants. The following is an example of different stages of the economy and different sources of incentives.
in conclusion
secondary title
