Miners of Filecoin go on Strike After the Mainnet Launch

October 19, 2020


A decentralized storage network started by Protocol Labs, Filecoin, is set to have a rocky beginning after a strike by miners immediately after the day its highly predicted mainnet launch on October 15. As per the report by 8btc.com, out of its 5 biggest miners turned off their machines in support of the strike, stating the project as unfair economic model that requires significant amount of FIL tokens to begin mining operations.


The project plans to furnish its clients with decentralized information storage and transmission services through servers offered by its miners with commodity hardware. Also, the excavators are needed to stake a lot of FIL tokens as Beginning Pledge Collateral to begin their mining activities. 


Zhihu Cloud, one of top five Filecoin diggers, has in excess of 8,000 InterPlanetary File System (IPFS) mining machines yet just 276 mining machines were running on Saturday, while the other four, including mining organization 1475, created even less storage mining power, the report stated. 


There are two different ways to get more tokens however neither of them is alluring. Excavators could win token rewards and put them down as security yet Filecoin discharges the awards throughout a half year subsequent to building a block. Subsequently, the miners get not many tokens toward the start.


However, miners can also purchase FIL tokens from trades, although that can be expensive and a risky step as many believe that FIL is currently overvalued and there can be heavy transaction charges.


Miners have been complaining regarding the Filecoin’s mining economic project much before the launch of mainnet and suggested that they should fork the model. China has been among the trendiest markets for Filecoin in past due to its different mining mechanism since project got nearly $200 million in its initial coin offerings three years ago.

Image Courtesy : Pixabay

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