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Filecoin Miners to Receive 25% Block Rewards Instantly

Filecoin Miners to Receive 25% Block Rewards Instantly

Vesting will no longer be a requirement for all those Filecoin miners who opted to update their rigs by installing the latest update. This would enable them to get access to 25% of their block rewards immediately. The head for Filecoin’s network, Molly posted on Wednesday about the project on the Slack channel. It was announced that miners could now download Lotus 1.1.0 and it was a mandatory upgrade for all those who wished to participate in its decentralized storage network. According to Molly, miners are required to upgrade before October 22nd, 2020 as that’s when the 170,000th Epoch will occur at around 22:40 UTC. 

If miners decide not to go for the upgrade, Molly said that they would no longer be in sync with the blockchain. The network reached the block height of 170,000 on Thursday evening. The implementation of FIP-005 is one of the most notable features of this latest upgrade. The purpose of introducing the upgrade was to enhance the ability of Filecoin miners of reinvesting FIL. The upgrade makes it possible by immediately providing miners access to 25% of the storage-mining rewards and eliminating the need for vesting. As of now, it will take almost 24 hours for Filecoin miners to be able to produce around 150,000 FIL. This is the network’s native cryptocurrency. 

Considering this rate as the base, the new rules mean that miners will be able to get 40,000 FIL tokens of their daily block rewards first. However, it cannot be predicted if miners will prefer to sell this FIL in the crypto markets or they would decide to immediately re-pledge it for boosting their computing power. This upgrade comes after a report of miners facing liquidity issues, which even caused some miners to hold back on their plans related to mining growth while the network’s mainnet went live. 

Filecoin’s economic design is such that it makes it mandatory for all miners to pledge an amount of its native token FIL, which is regarded as initial collateral. The purpose of doing so is to seal data within the network sectors because this enables them to boost their effective storage mining power. Before the latest upgrade was introduced, Filecoin miners had to wait for their block rewards because they were released to them on a linear basis and the process took approximately 180 days, which is quite a long time. But, the upgrade will certainly shake up things and it can work in favor of the miners.

After all, they will now receive an immediate 25% gain and will be able to vest the remainder of the rewards in the next six months. A notable crypto analysis platform, CoinGecko showed that a total of 19.3 million is already circulating within the network. Apart from that, miners have already pledged a total of 13 million FIL as initial collateral, which is also quite impressive. There is a good chance that win this incentive, more people will be drawn towards the platform and it could undergo substantial growth.

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