Does Filecoin’s 43.2% production reduction have any impact on miners?

Does Filecoin’s 43.2% production reduction have any impact on miners?
Today, major news websites are spreading news such as "Filecoin will reduce production on April 15" and "Filecoin will reduce production by 43.2%". Many people who have Filecoin servers have some misunderstandings: If Filecoin reduces production, will our output also decrease?

Here, I can tell you clearly:
It will not affect the amount of coins produced by miners!

The total issuance of Filecoin tokens is 2 billion, and the distribution plan is as follows:
  • Miners: 55%, released linearly through block rewards, used to maintain the blockchain and run contracts;

  • Miner Reserve: 15%, used to provide incentives to other types of miners, such as retrieval miners and maintenance miners;

  • Protocol Labs: 10.5%, as the R&D and operating expenses of the Protocol Labs team, released linearly over 6 years;

  • PL team contributors: 4.5%, mainly referring to the Protocol Labs team and other major contributors;

  • Investors: 10% is allocated to investors participating in private and public offerings, and will be released linearly over 6-36 months;

  • Foundation: 5%, for long-term community construction, network management fees, etc., to be released linearly over 6 years.


For investors who participated in the Filecoin private placement, the official promised to release Filecoin to investors linearly within 6 months, 12 months or 36 months after the mainnet is launched (hereinafter referred to as FIL6, FIL12, FIL36). By April 15, it will be exactly 6 months, and FIL6 investors will receive all Filecoin tokens on April 15.

Before April 15th, the Filecoin tokens circulating in the market every day = miners' output + FIL6 release + FIL12 release + FIL36 release + Protocol Labs linear release + Foundation linear release.

After April 15th, the Filecoin tokens circulating in the market every day = miners' output + FIL12 release + FIL36 release + Protocol Labs linear release + Foundation linear release.

Therefore, the part of the output that is reduced every day comes from FIL6, because all tokens have been released by April 15, and from April 16 onwards, the official will no longer release tokens to FIL6 investors.

Therefore, there is no need to worry about the profits of the servers behind. Miners and investors are originally in a parallel relationship, each has its own rules, and do not affect each other in terms of output.

On the contrary, after April 15, the circulation volume in the market decreased, and the selling pressure in the secondary market decreased, which may be beneficial to the price trend of FIL in the secondary market.


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