Filecoin is HOT Right now! But Will You Get BURNED??
👨🏫Filecoin Recap👨🏫
Filecoin is the incentive layer for the Interplanetary File System or IPFS. The IPFS makes it possible to host web content in a decentralized manner across multiple computers instead of a centralized server like the HTTP hosted content we use today. Filecoin and IPFS are just two of the protocols being built by Protocol Labs in their mission to create a new decentralized internet.
💸Governance and Tokenomics Clarification💸
The Filecoin Foundation coordinates all the stakeholders on Filecoin including users, miners, and developers. Any changes made to Filecoin will be done using the Filecoin Improvement Proposal process via FIPs, which are analogous to Ethereum’s own improvement proposals known as EIPs. Only about 30% of FIL’s total supply of 2 billion has been earmarked for Protocol Labs, the Filecoin Foundation, and the private investors who were allowed to participate in the 2017 SAFT sale. The remaining 70% of FIL’s total supply will be distributed to Filecoin storage miners in 3 manners, and will be gradually minted over a 20-30 period.
📰 Filecoin: Good News 📰
In October 2020, Filecoin partnered with Livepeer to bring decentralized video streaming to the IPFS. In mid-January, Brave became the first desktop browser to support the IPFS protocol. Earlier this month, Grayscale unveiled trusts for 5 altcoins including FIL, which had a predictable effect on the price of Filecoin.
😨Filecoin: Bad News😨
One day after the Filecoin main net launched, some of its largest storage miners went QUOTE ‘on strike’ to protest the low block rewards they were earning. This was soon resolved by increasing block rewards. Less than 2 months later, the Filecoin blockchain grinded to a halt. Thankfully, this had no impact on any data being stored on the IPFS via Filecoin, and the blockchain was back up and running within 4 hours. Two weeks ago, it was found that a Filecoin storage miner had somehow double deposited millions of dollars of FIL into Binance. The bug was found to exist on other exchanges as well.
📈FIL Price Analysis 📉
The order books for FIL on most exchanges are extremely shallow relative to FIL’s market cap, which currently stands at around 5 billion dollars. Out of the 60 or so million FIL in circulation, over 50 million of it is being staked by storage miners, and that number is going up by the day. FIL has a fully diluted market cap which is almost as large as Ethereum’s. This suggests that FIL is a bit overvalued, though those other tokens will not be coming into circulation any time soon.
📅Filecoin Roadmap📅
Filecoin’s earlier documentation and the Filecoin Foundation website also suggest that Filecoin will eventually transition into some sort of DAO. The focus of Filecoin Plus will likely be to govern Filecoin’s fundamental parameters, whereas various DataDAOs will have governance over the actual data stored using Filecoin. This is actually more important than it seems, because one of the most pressing questions about decentralized data storage networks like Filecoin and the IPFS is the moderation of content.
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
