The Filecoin mainnet (FIL) was launched last week. But already, miners report that it is impossible for them to be profitable … Unless you buy FIL.
User Nico Deva, posted a Twitter thread that describes the issues faced by Filecoin miners
He explains that less than 24 hours after the launch, users of the decentralized storage network, which provide space for rewards, were already on strike.
To participate in the Filecoin network, miners had to advance extremely high costs, because of the complexity of the project. A miner will thus have had to buy equipment costing several tens of thousands of dollars , in order to hope to obtain sufficient rewards when the mainnet is launched. The procedure had already been tested by a “Space Race ”. But where it gets stuck, according to Nico Deva, is when you take into account the time needed to “lock” the storage space:
“The locking speed is the cause of the congestion. You can provide a lot of space, but with two servers you will only be locking out about 1TB per day of the 336TB of storage you offer. It can take between 210 and 350 days to use and mine all of the space. “
Filecoin miners forced to buy FIL?
Filecoin miners must indeed staker of FIL, which acts as collateral for the space provided. But the problem is, miners can’t generate enough FIL for the staker because they can’t lock enough space. So that creates a circular problem. FIL’s largest miner therefore only offers 40 PiB of storage, out of the 280 PiB it has.
According to Nico Deva, Filecoin miners are stuck at around 1 / 7th of their storage capacity, which poses an unexpected problem:
“Miners have to buy FIL to continue increasing the storage capacity offered, or to stay at 1 / 7th of their capacity. “
A shame, when we know that the miners are precisely supposed to produce the FIL coins that feed the network … In China, the Filecoin miners community is therefore particularly affected, and feels “ disgusted” by the launch of the mainnet:
“The miners have provided tremendous support to the Filecoin team during the years of development, and now they ‚ve been fooled . The highly anticipated Filecoin launch has turned into a big joke and disappointment. The mood is gloomy around here. „
The price of the FIL has fallen in recent days
The course of the FIL also reflects these difficulties. After jumping by + 111% when it launched , it collapsed in the days that followed and seems to continue to decline:
This morning the FIL is trading for $ 32.20, with a market cap of $ 542 million.
If the miners continue to report profitability problems, getting off the ground could therefore prove difficult. This week, the Filecoin teams are offering a “Liftoff Week” to celebrate the launch of the mainnet. It will therefore be necessary to see if they are addressing minors to try to find a solution.