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Filecoin Miners Will Now Receive 25% Block Rewards Instantly

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Filecoin miners that have opted to install the latest network upgrade to their rigs, are now capable of immediately gaining access to 25% of their respective block rewards without the need for vesting.

New Update In Full Effect

Molly, the lead for Filecoin’s network, posted on the Slack channel of the project on Wednesday. There, Molly announced that Lotus 1.1.0 was now available for download, and stands as a mandatory upgrade for anyone wishing to participate within the decentralized storage network.

Molly stated that miners are mandated to upgrade before the 170,000th Epoch, which is estimated to occur on the 22nd of October, 2020, around 22:40 UTC. Should miners opt out of the upgrade, they will lose synch with the blockchain at large, Molly explained. The block height of 170,000 was reached by the network on Thursday evening, EST.

Improving Mining Liquidity

One of the key features of this upgrade is the implementation of FIP-004. This upgrade is dedicated to helping improve the ability of minters to re-invest FIL. The upgrade does so by allocating 25% of the storage-mining rewards immediately to these miners, without the need for any vesting.

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As it stands now, miners of Filecoin take 24 hours to produce about 150,000 FIL, which is the native cryptocurrency of the network. With this rate as a base, over 40,000 FIL tokens of the daily block rewards will be released to miners first under these new rules. However, it remains to be seen if the miners immediately re-pledge this FIL to increase their computing power, or otherwise sell it on the crypto markets.

This upgrade comes as a report to miners having liquidity issues, causing some participants to hold back their mining growth plans as the mainnet of the network went live.

25% Gains Immediately Available From Investments

The economic design of Filecoin mandates that miners pledge an amount of FIL to serve as initial collateral. This is done in order to seal data within valid network sectors, allowing them to increase their effective storage mining power.

Prior to FIP-004, the block rewards for miners were released on a linear basis across 180 days. Now, however, they will see an immediate gain of 25%, with the remainder of the rewards set to still be vested in the coming six months.

CoinGecko, a popular crypto analysis platform, shows that 19.3 million FIL is currently circulating within the network. Alongside this, 13 million FIL had already been pledged as initial collateral for miners.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.