New data storage will become the fundamental infrastructure for future internet and blockchain industry. Filecoin, as the only incentive layer for IPFS protocol, is able to migrate vast amount of data into distributed and decentralized data storage system. It has a good potential to guarantee data security, fast distribution speed and smooth user experience.
The Filecoin ecosystem is similar to a cloud storage ecosystem. It is built upon the circulation of 2 billion FIL tokens. From a long-term perspective, the need for data storage will continues to see exponential growth owning to the rapid advancement of AI, big data and 5G network. With the additional contribution from supporting industries, it can be foreseen that Filecoin’s main site will generate trillions of economic value upon its launch.
One of Filecoin’s key distinctions from Bitcoin and Ethereum is its collateral mechanism. Filecoin attempts to establish a just and fair balance between the supply side and the demand side. By protecting the interest of all parties involved, Filecoin will be able to enjoy better stability and longer-lasting success, hence building a virtuous cycle. Its distribution mechanism allocated 70% of FIL tokens to its miners. Some say Filecoin is born for mining.
Currently Filecoin mining reward per T has a rather slow growth rate, the reasons are as follows:
1. The Cake-Cutting Problem
Participating in the Filecoin mining market is like cutting a cake. Despite the team effort to bulk up the cake, a steadily growing number of newcomers are fighting to get their piece of the cake. When the growth rate of newcomers exceeds the growth rate of the cake, everyone will get less cake. This is the reason why Filecoin’s network profit per T has been slowly declining.
2. Insufficient Upfront Collateral
All Filecoin miners know that in order to run your mining machine, you have to stake a certain amount of FIL token as upfront collateral. At present, more than 90% of Filecoin miners cannot meet the production baseline due to the lacking of collateral tokens. This is the second reason why there is not much reward per TB for Filecoin’s network.
3. Surging in Gas Fees
At present the Filecoin network frequently witness violent fluctuations in gas fees. For any mining machine to earn the official return rate of 0.15FIL/T, it would requires around 5 FIL tokens as non-refundable upfront investment.
Under these circumstances, Filecoin miners are in desperate need for a new pathway to increase mining reward, shorten the pay-back period and avoid frozen capital.
Compares to purchasing mining machine, cloud mining has a lower entry barrier. As is the case with many cloud mining platforms, they connect the mining pool and take responsibility for all operation and maintenance. This massively streamlined the mining process, thereby making mining much more efficient and convenient.
Since cloud mining is the best option, it is important that we must find the right cloud mining platform. We must avoid those centralized platform where the data is non-transparent and the profit model is singular. Those platforms that cannot provide authentic mining power must be avoided too. If we can exclude these inferior platforms, we already achieved half of the success.
Now, let’s talk about DMEX. DMEX is a decentralized cloud mining power financial service platform. It provides the following services:
1.Provide authentic mining power and total control over quality assurance. Every single T of mining power on DMEX is fully-sealed effective mining power with full upfront collateral. It is guaranteed to reach the profit baseline of the main net.
2.Upload every single piece of mining power related data to blockchain via smart contract. Total transparency in data. Eliminate dishonesty and fraudulent risks.
3.Mining power NFT product can be traded. After users purchase mining power NFT, they will automatically receive the corresponding mining incomes. User can also trade their NFT to lock in their income in advance, thereby obtain asset liquidity.
4.Mining power NFT can be used for collateral loans, NFT backed loan, and mining power mutual insurance. There are a variety of funding options. More DeFi instruments will become available in the near future.
5.DMEX platform has a rigorous decentralized risk management system. It was achieved by DAO communal governance. It will be able to scrutinize all parties involved effectively, thereby ensure timely distribution of miners’ incomes.
Now, have you learned the best new way for Filecoin mining?