Filecoin, a decentralized storage network launched by Protocol Labs, is off to a rocky start after a strike by miners just one day after its highly anticipated miannet launch on Oct. 15.
Five of its largest miners turned off their machines to protest the project’s “unfair” economic model that requires a significant amount of FIL tokens to start mining operations, according to a report by 8btc.com.
Zhihu Cloud, one of top five Filecoin miners, has more than 8,000 InterPlanetary File System (IPFS) mining machines yet only 276 mining machines were running on Saturday, while the other four, including mining company 1475, generated even less storage mining power, the report said.
The project aims to provide its users with decentralized data storage and transmission services through servers offered by its miners with commodity hardware. However, the miners are required to stake a large amount of FIL tokens as “Initial Pledge Collateral” to start their mining operations.
While Filecoin uses the collateral as a leverage to ensure miners fully deliver their services according to users’ contracts, it creates a situation where the miners don’t have enough FIL tokens to begin with. Read from source….