Published
3 years ago on
October 20, 2020
Quick take
1 minute read
- You may have heard of the Filecoin blockchain-based data storage platform within the crypto industry.
- The creator and founder of the project, Juan Benet has recently called allegations that miners of the token have been on strike since last week calling them “nonsense“.
You may have heard of the Filecoin blockchain-based data storage platform within the crypto industry. The creator and founder of the project, Juan Benet has recently called allegations that miners of the token have been on strike since last week calling them “nonsense“.
According to a recent report, five of the biggest miners for the platform have turned off thousands of mining Rigs in order to fight back and protest the economic model data the platform practices. Under this system, miners on the platform are required to stake Filecoin tokens as collateral when they produce a block. Despite this, many of them are coming up short in a number of tokens needed, hence the strike.
(7.0) I was asked about a supposed “Miner Strike” -- This is nonsense. There is no strike. Miners are proving their storage just fine. There’s been no power loss out of the ordinary in the network. Miners are following the protocol, and making a TON of money doing so. pic.twitter.com/3U9MN0JGm9
— Juan Benet (@juanbenet) October 19, 2020
One user on Twitter, Nico Deva was one of the first people to highlight that “a majority of minors“ were on strike after the allegations that they needed to buy the platform tokens which would help take advantage of the mining capacity. However, this did not go well with some of the top miners in China and a strike was inevitable.
“A napkin calculation shows you early on that your mining system that requires $20K hardware also forces you to buy more coins. In a country where ponzinomics is an art, the 2017 poster boy just [blew] it.”
The creator took to Twitter as well to argue this point saying that this was not the case but did go on to say that miners we are simply producing blocks at a slower rate going on to say:
“What is happening is that miners are growing slower than before launch. This is in great part because the network is no longer subsidizing their pledge and fee costs — fees cost real money now, and miners need to match growth rate to token flow.”
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