A soul-searching question: Everyone’s hyping Filecoin’s upgrade tonight as a “75% cut in issuance,” but have you actually done the math? What it burns isn’t coins from the market.
At 20:59 tonight (Beijing time), the Solstice upgrade (FIP-0118, block height 6470279) goes live on mainnet: block rewards will no longer be handed out to miners for free. Miners’ share of consensus rewards will gradually drop from 95% to a floor of 50%, while the other half will go only to service providers who bring in paying storage clients. Any share no one earns gets burned. Sounds pretty deflationary, right? But what gets burned is “rewards that were never issued,” not coins bought back from the market by the project team. The actual reduction in issuance comes from the genesis unlock ending on 10-15—that’s what genuinely means fewer new coins (estimated daily issuance is set to fall by about 75%).
Here’s the twist: With so much good news piling up, $FIL has still fallen 17% from 1.276 on October 11 and is now languishing just above 1.1. Is the market really ignoring it, or is the good news being used as an excuse to sell?
One bet on the eve of the upgrade: A) Genuine bullish news—the cut in issuance and the upgrade are a double boost, so this dip is an opportunity; B) Sell the news—it’ll get dumped as soon as the upgrade goes live.
$BTC $ETH
#Filecoin #Solstice
At 20:59 tonight (Beijing time), the Solstice upgrade (FIP-0118, block height 6470279) goes live on mainnet: block rewards will no longer be handed out to miners for free. Miners’ share of consensus rewards will gradually drop from 95% to a floor of 50%, while the other half will go only to service providers who bring in paying storage clients. Any share no one earns gets burned. Sounds pretty deflationary, right? But what gets burned is “rewards that were never issued,” not coins bought back from the market by the project team. The actual reduction in issuance comes from the genesis unlock ending on 10-15—that’s what genuinely means fewer new coins (estimated daily issuance is set to fall by about 75%).
Here’s the twist: With so much good news piling up, $FIL has still fallen 17% from 1.276 on October 11 and is now languishing just above 1.1. Is the market really ignoring it, or is the good news being used as an excuse to sell?
One bet on the eve of the upgrade: A) Genuine bullish news—the cut in issuance and the upgrade are a double boost, so this dip is an opportunity; B) Sell the news—it’ll get dumped as soon as the upgrade goes live.
$BTC $ETH
#Filecoin #Solstice