Filecoin Network Faces Miner Strike After Launch

A day after the launch of the mainnet, the largest Filecoin miners began a strike, protesting the project’s economic model, reports 8btc.

On Saturday, October 17, the five largest Filecoin miners paused operations. At Zhihu Cloud, of 8,000 installations, only 276 were operating; for the other four, capacities dropped to zero. Many other mining companies prefer not to increase storage capacity.

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The miners’ grievance stems from the mining reward model set by the project’s developers. Block rewards unlock linearly over 180 days, but mining requires depositing collateral in FIL tokens. Miners do not have enough coins for this.

Many of them consider buying FIL on the secondary market risky, because the token, in their view, is overvalued.

Some simply cannot afford it, having invested all their funds in FIL mining equipment.

“All miners have been offline since the mainnet launch. This is not a protest — we had to stop them because we really have no tokens to back the mining,” said Chuhan Lai, CEO of ST Cloud.

The developers have already pledged to rethink the economic model, including in the update paying miners 25% of the block reward immediately after mining.

Earlier, Tron founder Justin Sun accused the Filecoin developers of dumping the FIL token.

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