Decentralized storage network Filecoin experienced its first major issue a day after its long-anticipated launch, as miners decided to go on strike, resulting in an early release of token rewards.
Updated on October 20: ‘Miner Strike is Nonsense, Miners Are Making a Ton’ – Filecoin Founder
Per a 8btc.com October 17 report citing interviewed miners, five of Filecoin’s largest miners shut down their machines in order to protest the economic model, because, “today miners actually have a lot of mining machines, but not enough FIL.” They’ve been preparing the machines for a couple of years for the project, but claim it’s unfair for the project to require a large amount of FIL as an “Initial Pledge Collateral” (as an insurance that the services will be delivered) for the miners to even start their operations.
Crypto analyst Nico Deva commented on the development on Twitter, stating that miners didn’t stop mining blocks but stopped pledging and sealing capacity. Going into the technical details and calculations, the post argued that there is a chicken and egg problem there, for which the Filecoin team designed ‘spaces races’ to solve.
This is a worse version of what’s an already a dubious idea. The technical details of why this is and what tradeoffs can be done to mitigate the issues are very technical and involved. Suffice it to say that Filecoin has failed to find the nonexistant sweet spot.
— Bram Cohen (@bramcohen) October 19, 2020
The project is starting its Filecoin Liftoff Week today, where they’ll discuss infrastructure, interoperability, upcoming plans, and it will feature speakers such as ConsenSys founder Joe Lubin and Aave CEO Stani Kulechov among others.
We contacted Filecoin for a comment on the miners’ protest and will update should they reply.
It blows my mind how overhyped this ICO was, even after the dump, the current market cap is just insane
— Stoic Hodler (@StoicHodler) October 18, 2020