$FIL FIL’s 6-year allocation cycle ends on October 14; new annual supply will drop sharply by 77%
An important update for those following Filecoin: the “genesis allocation” cycle officially ends on October 14.
What does this mean? The annual allocation of approximately 68.3 million FIL under the initial allocation mechanism will no longer be issued. From then on, block rewards will become the main source of new supply.
Here are the specific figures, and the most notable points:
Annual new supply (allocation plus block rewards) is expected to fall from 88.9 million FIL to 20.6 million FIL, a reduction of around 77%.
The inflation rate relative to circulating supply will drop from approximately 9.7% to 2.2%.
This is the kind of structural supply shock the market is watching closely. A sharp decline in new supply entering the market, while demand remains constant, is theoretically a factor that favors long-term price appreciation.
Block rewards for storage providers will not be affected by the end of the allocation period. 25% of these rewards is available for immediate use, while the remaining 75% vests and is released gradually over 180 days. So don’t confuse this with the end of rewards for miners.
However, let’s be realistic: reduced supply is a long-term narrative. It does not mean the price will immediately skyrocket on October 14. The market needs time to digest the change, and the price will continue to depend on capital flows and overall market sentiment.
Have you noted this October 14 event? A 77% reduction in new supply: could it trigger a market rally?
This news is for informational purposes only and does not constitute investment advice. Read it carefully before making a decision.
An important update for those following Filecoin: the “genesis allocation” cycle officially ends on October 14.
What does this mean? The annual allocation of approximately 68.3 million FIL under the initial allocation mechanism will no longer be issued. From then on, block rewards will become the main source of new supply.
Here are the specific figures, and the most notable points:
Annual new supply (allocation plus block rewards) is expected to fall from 88.9 million FIL to 20.6 million FIL, a reduction of around 77%.
The inflation rate relative to circulating supply will drop from approximately 9.7% to 2.2%.
This is the kind of structural supply shock the market is watching closely. A sharp decline in new supply entering the market, while demand remains constant, is theoretically a factor that favors long-term price appreciation.
Block rewards for storage providers will not be affected by the end of the allocation period. 25% of these rewards is available for immediate use, while the remaining 75% vests and is released gradually over 180 days. So don’t confuse this with the end of rewards for miners.
However, let’s be realistic: reduced supply is a long-term narrative. It does not mean the price will immediately skyrocket on October 14. The market needs time to digest the change, and the price will continue to depend on capital flows and overall market sentiment.
Have you noted this October 14 event? A 77% reduction in new supply: could it trigger a market rally?
This news is for informational purposes only and does not constitute investment advice. Read it carefully before making a decision.