What exactly is IPFS and what is its market prospect?

What do pledged coins, GAS fees, 180-day linear release, and 540-day release mean?

I advise all new friends to read this article before entering the pit!

The most popular one on the market right now is definitely the IPFS mining machine. As the first choice for FIL mainnet mining, let’s talk about Filecoin’s mortgage mechanism.

Filecoin officially released "Interpreting Filecoin Economy" staking is divided into three sections

Initial pledge, also known as pre-pledge, is also called storage and consensus pledge. We need to pledge when we encapsulate sectors. According to the current block height, the current sector pledge is about: 0.2746 FIL / 32GiB, and encapsulating 1T computing power requires a pledge of about 8.787 FIL. Because the longest life cycle of a sector is currently 540 days, when the sector life cycle ends, this part of the pre-pledged FIL will be returned to the miner's account, so the pre-pledge is released after 540 days.

Block reward pledge is also called lock-up release pledge. According to official rules, after we get the block reward, 25% of it will be released immediately, and the remaining 75% will be temporarily locked and released linearly to the miner (client) account within 180 days, so this part of the reward is also called block reward pledge, which is what we call post-stake. If a block reward produces 20 coins, it means that 1/180 FIL of post-stake can be obtained every day, that is: 20 * 0.75 / 180 = 0.083.

It is a bit like buying a treasury bond. First, we have to pay a fee to buy the treasury bond. This fee is equivalent to the pre-pledge. When the treasury bond expires, the money will be returned to your account. After purchasing the treasury bond, we can choose to collect interest every year during the contract period. This is the 75% linear release of the block reward, which is our post-pledge.

The third part of the pledge is the incentive pledge, which is also called market pledge. It is to establish an incentive mechanism between miners and users to make miners stand out in the market. In order transactions, miners can grab orders by providing higher FIL as transaction pledge (the more FIL pledged, the more secure and stable the storage provided by the miner providing storage), and these FIL will be returned to the original account after the transaction is completed.

If there is output and reward, there will naturally be a punishment mechanism.

Sector failure fee: If a sector is in failure, 1T computing power is lost on the day, and it is restored to normal within 24 hours, the penalty can be avoided. If it is still not restored after more than 24 hours, a penalty of about 0.5 FIL per T per day will be imposed. If the sector cannot be restored, the penalty will be imposed for 14 days. If you encounter a sector that cannot be restored, you can submit a sector termination message, but you will also be fined, but it will be less than the cumulative value of the 14-day penalty.

Sector sealing timeout penalty: We all know that sealing a sector requires submitting two messages, one is the precommit message submitted after the PC2 phase ends, and the other is the provecommit message submitted after the C2 phase ends. The time difference between the two messages for sealing the same sector cannot exceed 25 hours, otherwise a penalty of 0.07 FIL will be imposed for each sector.

Sector fault detection fee: If the miner fails to report the fault, but the unreported fault is detected on the chain, the miner needs to pay a fault detection fee. In this case, if the situation is restored to normal within 24 hours, the miner can also avoid being punished. However, if the situation is not restored within 24 hours, the block reward of the sector for 5 days will be confiscated every day.

Sector termination fee: If a sector loses computing power for more than 14 consecutive days, it will be considered a default or deleted by the network. The official article "Filecoin Function: Slashing" released on November 17 mentioned that in this case, all rewards and initial pledges of the sector will be confiscated, that is, if a sector is confirmed to have been terminated, not only will all the pre-stake coins of the sector be confiscated, but all rewards previously obtained by the sector will also be confiscated.

Combining these aspects, the entire IPFS staking machine currently requires about 9.32 coins per T, and the GAS fee is about 1.23 coins per T. This is updated from time to time. If you buy an IPFS machine and you want to mine at full computing power, 16T will require about 120 packaged staking coins, and it will take 100 days to mine at full computing power. For 96T, it will require more than 700 coins, and it will take 100 days to mine at full computing power. The output still needs 180 days to be released linearly, so novices are not recommended to buy a mining machine by themselves. IPFS also has high requirements for network transmission speed, and it needs to be mined in the IDC constant temperature computer room, not the home network and power supply.