24:null 25:["$","title",null,{"children":"A Primer to Filecoin Circulating Supply | Starboard | Observable"}] 2a:T43c,The maximum Filecoin tokens (referred to as FIL_BASE) is stated at 2 Billion, however the cryptoeconomic mechanisms written into the protocol adjust how many tokens will be issued based on the actions of various stakeholders in the network. In reality, the maximum amount of Filecoin tokens is much lower due to a series of mechanisms. For example: - **Performance Based Minting:** The storage added to the Filecoin network must continue to grow exponentially in order for the maximum minted tokens to be issued to storage providers. If the network grows slower, a fraction of the total allocation will be minted. - **Reserve Tokens:** A portion of tokens are held back in reserve to incentivize future types of mining such as retrieval mining. - **Burned Tokens:** Significant Filecoin tokens will be burned in network transaction fees if there is activity on the Filecoin network - **Locked Tokens:** Tokens are taken out of circulating supply and locked as collateral, in order to ensure consensus security, storage reliability, and contract guarantees from Storage Providers 2b:T54f,While the max supply of the Storage Provider allocation is 1.4 Billion tokens (70% of FIL_BASE), actual minting depends on both the growth rate of the storage onboarded to the network and future Filecoin improvement proposals. There are 3 components to the storage provider allocation: - **Simple Minting:** Time Based Release This is the only portion of the SP allocation that is guaranteed 330M FIL tokens are released on a 6 year half-life based on time. A 6 year half life means that 97% of these tokens will be released in approximately 30 years time. - **Baseline Minting:** Performance Based Minting This component will only be released if the network grows at a certain rate A maximum of 770M FIL tokens is minted based on the performance of the network. Network will need to double every year, starting at 2.5 EiB in year 0. To reach maximum minting, the the Network will need to reach 1 Yottabyte of capacity (1000x larger than total cloud storage today) in 20 years - **Mining Reserve:** Tokens excluded, awaiting a Community Proposal 300M Tokens are held back in reserve to incentivize future types of mining, for example retrieval mining It will be up to the community to decide how these tokens would be released and which sets of stakeholders should be incentivized, but for now this portion of total supply is held back in reserve. 2c:T455,function toc(config) { const selector = config && config.selector ? config.selector : "h2,h3,h4"; const heading = config && config.heading ? config.heading : "Table of Contents"; return Generators.observe(notify => { let headings = []; function observed() { const minSelector = Math.min(...selector.split(",").map(d => +d.replace("h", ""))); const h = Array.from(document.querySelectorAll(selector)); if (h.length !== headings.length || h.some((h, i) => headings[i] !== h)) { notify(html`${heading}

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A Primer to Filecoin Circulating Supply
","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2916,"value":"An article on Filecoin circulating supply fundamentals.","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":968,"value":"Preface:","pinned":false,"hidden":false,"mode":"html","author":"$undefined","summary":"$undefined"},{"id":813,"value":"- Please do your own research\n- Filecoin’s full cryptoeconomic mechanisms are described in the “Engineering Filecoinʼs Economy” whitepaper (https://filecoin.io/2020-engineering-filecoins-economy-en.pdf)\n- The Filecoin codebase and Filecoin Spec should be used as the source of truth \n- Elements of this analysis was drawn from the video, Filecoin Circulating Supply: Mechanisms and Scenarios (https://www.youtube.com/watch?v=O0SHgksn1AI ).\n","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1308,"value":"toc()","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":8,"value":"## 1.Token Overview ","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":874,"value":"Filecoin is a distributed storage network based on a blockchain mechanism. The token in this network is called FIL. Filecoin miners can select to provide storage capacity for the network, thereby earning units of the Filecoin cryptocurrency (FIL) by periodically producing cryptographic proof that certify that they are providing the capacity specified. In addition, Filecoin enables parties to exchange FIL currency through transactions recorded in a shared ledger on the Filecoin blockchain.\n","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":975,"value":"### 1.1 Introduction to Circulating Supply","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":172,"value":"![image@3.png](${await FileAttachment(\"image@3.png\").url()})","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":978,"value":"$2a","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1022,"value":"### 1.2.Specific Circulating Supply Mechanisms","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1027,"value":"#### 1.2.1 Storage Provider Allocation ","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1030,"value":"$2b","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1034,"value":"#### 1.2.2 Investor Allocation","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1039,"value":"**10% of total FIL_Base (200M tokens) was allocated to investors**\n7.5% were sold in the 2017 token sale\n2.5% remaining were allocated for ecosystem development and potential future fundraising.\n\n**Investors from 2017 opted into one of several linear vesting schedules:**\n- 6 months\n- 12 months\n- 24 months\n- 36 months\n\nVesting schedules are built into the protocol code and are deterministic. After 3 years, all 2017 tokens will be fully vested.\n","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1043,"value":"#### 1.2.3 Filecoin Foundation Allocation","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1046,"value":"5% of FIL_BASE (100M tokens) were allocated to the Filecoin Foundation, vesting linearly over 6 years","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1049,"value":"#### 1.2.4 Protocol Labs Allocation","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1052,"value":"15% of FIL_BASE (300M tokens) were allocated to Protocol Labs, vesting linearly over 6 years (including 4.5% for the PL team & contributors).","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1058,"value":"#### 1.2.5 Filecoin Plus ","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1061,"value":"Filecoin Plus encourages Storage Providers to Store Real Data. Notaries can add the world’s most valuable data to Filecoin Plus and earn 10x the block reward vs. storing regular data. This has two effects on the economy:\nEncourages Storage Providers to add data to Filecoin Plus, incentivizing all participants to invest in business development, recruit valuable data and use cases, and make Filecoin more useful.\nEncourages Reliability, as storage providers need to lock 10x the collateral when storing Filecoin Plus data, and hence can incur 10x the penalty if the storage is unreliable \n\nWe need to assume how Filecoin Plus deals will grow to understand the implications of block rewards and collateral for modeling purposes.\n","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1064,"value":"#### 1.2.6 Collateral and Slashing","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1067,"value":"Collateral: Miners must lock Filecoin tokens for consensus security, storage reliability, and contract guarantees, which reduces available tokens in the circulating supply\n- Pledge Collateral: tokens are locked as pledge collateral to bring storage supply to the network \n- Deal Collateral: required to meet storage demand.\n\nSlashing: Collateral and all earned rewards by miners are subject to slashing throughout the lifetime of a sector.\n- Penalizes bad behavior\n- Unreliable storage reduces the utility of the network and hence block rewards earned by these sectors will be slashed and burned.\n\nCollateral and Slashing can help to control circulating supply, and the following chart shows \nhow the locked FIL changed every day","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1070,"value":"**Collateral and Slashing can help to control circulating supply and the following chart shows \nhow the locked FIL changed every day**","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1084,"value":"LBCSChart = html`
`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1086,"value":"import {lockedBurntOption as LBCSOption} from \"@starboard/chart-daily-locked-fil-breakdown\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1535,"value":"echarts.init(LBCSChart).setOption(LBCSOption)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1090,"value":"#### 1.2.7 Network Transaction Fees","pinned":true,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1093,"value":"As long as there is any action or utility on the network, Filecoin tokens will be consumed to compensate for the computation and storage resources on-chain messages consume. The rate of token consumption is also in the hands of the community, as participants compete for on-chain resources.","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1414,"value":"Since network launch, the Filecoin daily token consumption has climbed as high as 250K FIL per day.","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1428,"value":"Here is the chart that shows the Daily average Network Fee(since the mainnet lanunch) and its breakdown","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1250,"value":"table1()","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1408,"value":"BARChart = html`
`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1416,"value":"Here is the historical accumulation Network Fee chart and its breakdown","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1096,"value":"MNFBPChart = html`
`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1100,"value":"import {option as MNFBPOption,optionBar as BAROption,getTable as table1} from \"@starboard/chart-monthly-network-fee-breakdown\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1102,"value":"echarts.init(MNFBPChart).setOption(MNFBPOption)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1394,"value":"echarts.init(BARChart).setOption(BAROption)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":292,"value":"---","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":470,"value":"## 2.Filecoin Circulating Supply Example Simulation","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2771,"value":"viewof selectbutton = Inputs.radio([\"Total FIL Circulating Supply\", \"FIL Circulating Supply Daily Change\"], {value: \"Total FIL Circulating Supply\"}) ","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2785,"value":"btnCirculatingsupplyChart = html`
`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2813,"value":"{\n if(selectbutton == 'Total FIL Circulating Supply' ){\n echarts.init(btnCirculatingsupplyChart).clear();\n echarts.init(btnCirculatingsupplyChart).setOption(TFCSOption)\n }\n else{\n echarts.init(btnCirculatingsupplyChart).clear();\n echarts.init(btnCirculatingsupplyChart).setOption(csbOption)\n }\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2582,"value":"import {dailyChangeOption as csbOption} from \"@starboard/daily-change-in-circulating-supply\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1009,"value":"import {circulatingSupplyOption as TFCSOption} from \"@starboard/chart-fil-protocol-circulating-supply-line-chart\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1327,"value":"### 2.1. Verision w / CMC definition","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1331,"value":"CoinMarketCap and other websites use a different definition of Circulating Supply than the protocol. They exclude any tokens held by the Foundation, PL, and other founders that remain in their original wallets.More described at the end of this blog post: https://filecoin.io/blog/filecoin-circulating-supply/ ","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":1476,"value":"**Plot CMC definition against the protocol one (Historical) **","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2212,"value":"VSCMCChart = html`
`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2214,"value":"import {VS_CMC_Option as VSCMCOption,getTable as table} from \"@starboard/datafield-protocol-circulating-supply-vs-cmc-circulating\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2216,"value":"echarts.init(VSCMCChart).setOption(VSCMCOption)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1334,"value":"### 2.2. Circulating Supply Example Simulation","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2743,"value":"**This is an example simulation, that makes it's own assumptions on network growth, verified deals, and network fees, and should not be taken as predictive - rather one possible view of the future. To change the assumptions and make your own projections, please use this obsrvable**","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2747,"value":"https://observablehq.com/@starboard/filecoin-circulating-supply-simulation","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2867,"value":"The following parameters can have a relatively large impact on circulating supply,We made Simulation based on these parameters","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2866,"value":"\n- #### Projected Monthly Network Growth (%):\nProjected network raw byte storage capacity growth\n- #### Projected Verified Storage Percent(%)\nThe projected average percentage of total storage capacity that stores verified deals over the forecast period.\n- #### Projected Monthly Burn (M-FIL)\nThe projected amount of FIL burned per month the forecast period:","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2875,"value":"** Default Parameters **","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2879,"value":"Projected Monthly Network Growth(%) =3 \nProjected Verified Storage Percent(%) = 60 \nProjected Monthly Burn (M-FIL) = 1","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2737,"value":"getFCSPChart2()","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2731,"value":"getFCSPChart()","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2922,"value":"# 4.Import Data Chart & Chart Option","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2752,"value":"## Appendix","pinned":false,"hidden":false,"mode":"md","author":"$undefined","summary":"$undefined"},{"id":2729,"value":"import {getChart as getFCSPChart,forecastMonth} from \"@starboard/filecoin-circulating-supply-simulation\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":2735,"value":"import {getChart_2 as getFCSPChart2,forecastMonth} from \"@starboard/filecoin-circulating-supply-simulation\"","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":937,"value":"function support(lable,url) {\n return html`${lable}`;\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":938,"value":"support('asd','@starboard/datafield-circulating_supply-fil_vested')","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":753,"value":"echarts = require('https://cdn.jsdelivr.net/npm/echarts@5/dist/echarts.min.js')","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"},{"id":1344,"value":"$2c","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined"}],"files":"$W2d","stdlib":"1","titling":"auto"}} 29:"$28:body"