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From YouTube: ESPA Module 1B - Filecoin Economics
Description
Andrew Stanco (Sr. Financial Analyst) with PiKNiK discusses the Filecoin economics at the Enterprise Storage Provider Accelerator (ESPA) bootcamp week that took place in February 2022. This discussion includes introduction to the Filecoin Specification, FIL economy and utility token, blockchain ledger, calculating collateral, pledging committed capacity, calculating block reward, storage deal pricing, retrieval deal pricing as market develops, and verified storage deals.
Data is growing at an incredible speed and much of this data is archived and/or simply lost by enterprises. Our program will accelerate net-new Enterprise Storage Providers into the ecosystem, using a Web3 protocol with an impressive incentive model called Filecoin.
Learn more at:
Sign-up: https://web3espa.io
Landing Page: https://m.fil.org/espa-bootcamp
Follow ESPA:
Twitter: https://twitter.com/web3ESPA
LinkedIn: https://www.linkedin.com/company/web3espa/
A
A
Economies
have
various
aspects:
they
grow,
they
contract,
they
expand
they
decay.
They
have
many
components
with
many
players,
it'll
be
challenging
to
be
comprehensive
in
an
hour
and
just
talk
about
every
aspect
of
the
filecoin
economy.
What
we're
going
to
do
now
is
give
you
the
principles
and
the
tools
to
understand
what
what
the
key
parts
are,
how
to
learn
more
and
how
to
be
successful
as
a
storage
provider.
A
So
here
what
we
have
is
sort
of
my
other
way.
My
initial
aspect
of
understanding,
crypto
economics,
web
3,
the
sort
of
current
state
of
the
internet-
this
is
taken
from
an
article
in
the
economist,
came
out
in
the
end
of
2021,
and
I
have
like
no
idea
what's
going
on
right.
I
think
the
the
hand
is
the
government
big
brother,
elizabeth
warren,
pick
your
political
opponent,
it's
probably
one
of
them.
There
are
canons
that
have
circuit
boards
for
wheels.
It's
very
evocative.
Everything
looks
like
cigars.
If
you're
freud,
I
think
they
are
firing.
A
You
know
lawyers
out
of
the
cannons
which,
depending
on
how
much
you
deal
with
them,
is
either
great
or
terrible
or
amazing,
but,
as
you
can
see,
it's
confusing
and
no
one
necessarily
has
a
clear
line
of
sight
because,
as
we
sort
of
said
at
the
beginning
of
the
white
paper,
it's
a
revolution,
everything
is
changing
very
quickly
and
what
I
hope
to
do.
What
we
hope
to
do
in
espa
is
give
you
a
better
sense
or
a
shorter
footing
for
what's
going
on.
That's
the
way.
A
I
helped
that's
the
way
it
helped
me
learn
and
hopefully
that's
the
way
it
helped.
You
learn
so
here's
an
executive
summary
of
file
coin.
I
got
to
imagine
if
you're
andy,
jassy
or
if
you're
satyandela,
you're,
probably
not
as
thrilled
with
this,
but
it
just
gives
you
a
quick
nutshell
and
like
a
graphic
and
a
couple
words
of
what
we
aim
to
accomplish,
you
can
see
that
end
users,
customers
purchase
filecoin
to
stored
files
right.
A
We
have
to
post
collateral
with
storage
providers,
we
receive
it
as
block
rewards
right
and
then
eventually
we
store
or
receive
our
customers
data.
Now
there
are
a
couple
challenges
with
this:
there's
some
things
that
make
it
difficult
or
hard.
Some
of
them
are
physical
right,
I'd,
say
just
there's
a
supply
chain
constraint
going
on
right
now
in
early
2022.,
it's
just
hard
to
get
any
sort
of
silicone-based
equipment
like
no
matter
where
you
are
in
the
supply
chain.
It's
just
difficult.
A
There
are
some
financial
barriers
to
entry
collateral
was
super
expensive
right,
that's
something
we
hope
to
solve
right,
but
there's
also
one
that
we're
speaking
to
right
now,
which
is
there's
a
significant
learning
curve.
Filecoin
is
not
necessarily
intuitive,
even
though
it's
powerful,
that's
something
I
hope
we
address,
and
hopefully
we
bring
everyone
up
along
the
learning
curve.
A
little
bit
so
here
on
the
next
slide
is
sort
of
the
way
that
I
thought
about
understanding
filecoin.
When
I
first
was
approached
it.
A
You
know
a
while
ago,
in
pandemic
years,
it's
a
very
very
long
time
ago,
but
sort
of
the
profitability
drivers
in
the
network.
The
my
best
way
of
understanding
something
as
someone
on
the
finance
team
is
through
a
p
l.
How
does
something
make
money?
Is
it
profitable?
Does
it
make
economic
sense?
So
the
way
I
think
about
it
is
just
break
it
down
into
revenue
and
costs
and
then
further
break
it
down
into
what
I
can
control
as
a
storage
provider
or
as
a
business,
and
what
I
can't
control.
A
Now
I
come
from
the
energy
industry.
Renewable
so
don't
worry
and
there
are
lots
of
things
you
couldn't
necessarily
control.
Like
I
said,
the
price
of
file
coin
hardware
costs
supply
chain
issues.
How
big
block
rewards
are,
but
there
are
certain
things
I
can
control
what
differentiate.
What
differentiates
me
from
other
people?
What
are
my
prices?
A
What
are
my
labor
costs
right?
All
those
things
matter
and
you
can
see,
as
I
see
in
the
above,
reduce
it
to
a
simple
statement:
the
fees
I
charge
to
customers
and
end
users
right
plus
my
block,
rewards
times
the
file
coin
price
minus
all
those
relevant
costs
becomes
a
simple
way
to
to
understand
it.
It's
like
the
way
I
did
so.
Let's
go
through
the
file
going
specification,
so
the
file
coin
specification.
As
you
can
see,
on
the
link.
A
There
is
a
primary
resource,
it's
a
large
living
document
and
it's
something
that
has
various
technical,
economic.
It's
just
more,
it's
a
very,
very
long,
comprehensive
store
document
that
has
a
lot
of
useful
information
on
it.
If
you're
here
for
espa
or
if
you're
listening
along,
it's
definitely
worth
your
time
to
go
visit
that
link
and
read
through
it.
A
So
this
is
one
of
the
areas
as
I
was
first
coming,
as
I
was
learning
about
pilecoin
that
can
seem
intimidating
at
first.
It's
large
tons
of
links,
different
colors
things
are
in
various
statuses,
but
it's
a
great
way
to
start
your
journey,
and
what
I
have
here
on
the
slide
are
just
a
couple
sections
that
I
found
were
really
useful
when
I
was
learning
there
are
areas
that
are
some
fundamental
kind
of
like
blockchain
token
and
then
even
more
economic
and
and
more
expansive,
like
storage
mining
markets.
A
A
Everything
has
always
just
kept
growing.
It's
made
it
hard
to
keep
up,
but
it
also
is
thrilling
to
know
that
you're,
a
part
of
something
that's
growing
so
outside
of
that
outside
of
these
three
large
metrics.
There
are
other
use
cases
both
for
archival
storage,
decentralized,
videos,
but
also
even
outside
of
filecoin
humanities.
Appetite
and
production
of
data
is
growing.
A
Now
that
sort
of
separates
it
out,
especially
as
I
learned
or
as
as
we're
talking
about
it
means
that
the
the
token
itself
becomes
a
way
like
it's
something
that
you
use:
it's
not
just
something
that
has
intrinsic
value
or
that
as
a
meme
or
that
you
can
right
click
and
save
right.
The
token
holders
you
know
sort
of
it
gives
you
access
to
the
network
and
lets
you
use
it.
I
think
that's
important,
that's
what
differentiates
it
in
my
mind
from
other
things,
from
other
protocols.
A
So
one
of
the
a
big
analogy
for
filecoin
for
other
areas
as
well
is
that
filecoin
is
kind
of
like
an
island
economy
so,
like
we
said
using
the
token
gives
you
the
right
to
use
the
network,
but
it
also
means
that,
when
everyone
comes
together
developers,
storage
providers,
researchers,
the
island,
creates
something
and
exports
it
to
the
world.
Right,
that's
storage
right!
The
way
it
does.
It
is
going
to
look
different
right.
The
way
it'll
do
will
change
over
time
like
any
economy
right.
Think
of
the
us
chinese,
the
world
economy.
A
It
looks
vastly
different
over
time
than
when
it
first
began,
but
they
always
produce
some
sort
of
useful
good,
something
that
is
demanded
by
the
outside
world
right.
In
our
case,
it's
storage
both
in
storage
markets,
retrieval
markets,
as
we
get
further
along
in
the
presentation
we'll
go
through
and
look
at
that
more.
A
So
this
is
a
pentagram.
I
promise
it's
not
your
typical
one
kind
of
trusting
everyone's
ability
to
read.
This
comes
from
a
2020
presentation
that
I
thought
was
quite
good.
Juan
bennett,
zx
zhang
other
members
of
protocol
labs
have
talked
about
it
as
well,
and
this
is
called
engineering
file
coins
economy.
It's
a
great
read
it's
about
like
30,
35
pages,
totally,
also
worth
your
time.
A
It's
another
reference
document
along
with
the
specifications
that
gives
you
a
really
strong
foundation
for
what
it
means
to
be
a
storage
provider
and
sort
of
how
to
understand
the
network
and
the
markets
and
the
protocol.
Now.
The
best
thing
here,
or
the
thing
you
should
take
away,
is
that
there
are
overlapping
but
distinct
areas
that
you
could
participate
in.
You
could
be
a
researcher,
you
could
be
a
storage
provider.
Miner
was
the
old
word
right
clients,
you
could
be
developer.
You
can
be
just
a
token
holder
right.
A
A
So
right
now,
since
this
is
an
overview,
give
you
a
quick
overview
of
blockchain
ledgers
right,
you're-
probably
familiar
with
them
through
various
shapes
or
forms
again
for
timeliness.
To
date.
This,
if
you
just
watched
the
super
bowl,
you
could
not
have
not
watched
the
super
bowl
and
had
blockchain
related
or
crypto
related
ads
thrown
at
your
face.
So
to
give
you
a
quick
overview
outside
of
a
qr
code
that
you'd
take
a
picture
of
or
something
like
that
that
took
forever
to
open.
A
Just
remember
that
blockchains
are
something
that's
trivially,
easy
to
verify,
but
extremely
hard
to
fake
right
and
it's
a
public
open,
distributed,
ledger
right,
it's
cryptographically
secured!
So
the
way
that
filecoin
does
it
is
not
necessarily
proof
of
like
proof
of
work
or
computing
power
or
something
like
other
networks
right.
They
have
proof
of
storage.
It's
sort
of
your
contribution
to
the
network
in
terms
of
storage
power
and
that's
really
useful.
That's
really
unique
I'd
say
so
that
storage,
as
you
can
see
on
this
slide
takes
it
takes.
A
You
know
the
form
of
two
areas,
proof
of
replication,
so
that
means
you've.
Given
me
my
data
and
I'm
storing
it
on
the
network,
and
I
proved
that
I've
proved
that
I've
created
a
valid
copy
of
whatever
you
want
right,
probably
my
magic
art
collection
become
a
nerd
right,
you
know,
or-
and
you
also
have
proof
of
space
time,
so
that's
where
I
can
prove
as
a
storage
provider
that
I
continue
to
store
that
valid
copy
and
I've
kind
of
locked
myself
into
saying
that
it's
still
the
magikarp
collection
right.
A
You
know
for
some
data
for
some
period
of
time,
it's
you're,
proving
that
you're
still
doing
that
those
are
the
key
concepts
at
like
a
very,
very
high
level,
but
still,
I
think,
useful
to
understand
so
now
we're
into
calculating
collateral
right.
So
basically,
why
do
we
do
that
like?
Why
do
you
have
to
stake?
What
do
you
have
to
do?
What
does
this
all
mean?
Why
is
there
a
piggy
bank
here
right?
It
means
that,
like
how
do
I
ensure
good
economic
behavior,
that's
really
all
that
collateral
ever
does
in
various
shapes
of
form.
A
Whether
the
bank
asks
you
to
post
collateral,
whether
your
digital
asset
exchange.
I
see
post
collateral.
What
the
robinhood
does
like
you're
just
aligning
economic
incentives
and
ensuring
that,
if
something
were
to
go
bad,
that
counterparty
has
a
way
to
act
on
it
as
a
way
to
protect
themselves,
and
that's
something
that's
very
important,
especially
if
we're
in
a
sort
of
distributed
environment
right.
The
purpose
is
to
ensure
that
everyone
acts
in
good,
fake
faith
fate
you
know,
or
their
stake
is
reduced
right
now.
One
thing:
that's
pretty
cool
about
filecoin.
A
Someone
like
me,
really
don't
like
that.
You
know.
Here's
our
365
days
rather
than
360
is
that
the
sectors
for
file
coin-
the
sort
of
time
span
for
this
range
from
180
or
540
days.
It's
great.
If
you're
like
me
and
you're
super
old
school,
because
most
of
the
old
finance
calculations,
usually
for
like
bond
or
interest
payments,
something
else
from
like
long
long
time
ago
or
dated
in
360
day
years.
So
that's
pretty
cool.
A
A
Now
we're
going
to
go
through
for
the
next
couple,
slides,
basically
how
to
calculate
you
know
collateral.
What
is
what
does
it
mean
to
commit
capacity,
and
these
can
all
get
technical
so
as
an
overview.
Something
that,
like
I
think,
is
really
important-
is
that
the
precise
amounts
in
any
one
moment
in
time
are
not
useful
for
a
presentation.
They'll
be
useful
for
you
as
a
storage
provider,
as
you
go
out
and
win
deals
as
you
go
and
understand
the
market,
but
it's
better
to
understand,
at
least
from
my
perspective,
right,
the
principles
behind
them.
A
A
So
there
are
three
big
types
of
collateral
that
you
need.
First,
is
your
initial
pledge
collateral?
That's
what
you
need
to
participate
in
the
economy.
The
second
is
what
you
get
as
a
block
reward,
what
you
get
as
a
storage
provider
and
then,
finally,
you
sort
of
have
the
storage
deal
collateral.
So
what
you
negotiate
with
a
customer
with
a
client.
A
A
These
are
two
key
components
which
are
which
giving
you
precise
numbers
now,
not
necessarily
useful,
but
understanding
the
mechanics
behind
them.
I
think
make
it
easier
for
someone
to
understand.
What's
going
on
or
to
like
in
layman's
terms,
why
is
this
number
so
big
understanding?
That
is
a
key
way
for
understanding
why
the
numbers
so
big
now
we're
at
block
rewards
as
collateral.
This
is
what
you
get
right
for
doing
your
job.
It's
great
so
one
of
the
key
things
that
makes
it
different,
though,
is
that
you
don't
get
all
of
your
block
rewards
immediately.
A
It's
something
you'll
see
also
on
the
next
slide
too.
Basically,
what
happens
is
you
get
it
right,
but
it's
also
subject
to
that
same
sort
of
performance
incentive
that
we've
talked
about
before.
If
something
bad
were
to
happen
or
if
I'm
default
on
my
performance,
some
of
those
block
rewards
go
away,
which
makes
sense.
It
feels
fair.
Aligning
incentives
are
important.
It's
a
big
theme
in
the
network.
A
What
you'll
see
on
the
next
slide
sort
of
is
storage
provider
deal
collateral?
That's
the
collateral,
you'd
get
right
for
negotiating
deals
right,
say:
have
it
with
the
showa
foundation
or
with
a
private
university
to
make
it
less
specific
right.
This
is
a
way
you
can
differentiate
yourself.
Higher
collateral
might
be
a
way
to
say
to
indicate
to
the
market
different
levels
of
service,
I'm
better
able
to
store
your
data.
All
these
sort
of
things
are
important
right
in
sort
of
understanding.
A
What's
going
on
so
now
we're
on
useful
sources
of
file
coin
like
useful
sources.
So
one
of
the
ways
I
think
to
learn
more
is
to
go
into
the
market
and
see
what
the
community
is
making
with
it
see
other
other
ways
outside
of
linearly
reading
white
papers.
You
know
what
else
you
know:
reading
white
papers
other,
like
other
things,
there
are
other
areas
where
you
can
learn
two
of
the
areas
I
found
the
most.
I
guess
the
most
useful
are
fgas.io
and
philvox.
A
A
Now,
I'm
not
going
to
be
like
a
file
coin
trader
where
I
have
to
go,
buy
or
sell,
or
you
know
I'm
screaming
over
the
phone
like
oh
the
market's
going
down
or
something
like
that,
but
it's
just
useful
to
have
quality
consistent
information,
especially
if
I'm
going
out
there
trying
to
build
my
business
trying
to
forecast
demand
or
just
because
I
like
to
come
from
an
underwriting
background,
just
different
scenarios,
depending
on
how
the
cost
of
collateral
changes
or
how
the
price
of
file
coin
impacts.
My
business
these
areas
are
both
really
really
useful.
A
What
we'll
go
through
is
fgus.io
right
is
useful,
at
least
in
my
mind,
currently
for
collateral
and
gas
fees
right.
The
sort
of,
on
the
one
hand,
basically
the
amount
you'll
need
to
post
right,
you
know
or
that
consensus
pledge
right
and
then
also
the
gas
is
sort
of
how
much
you
need
right
or
how
much
you'll
burn
like
as
you're
operating
on
the
network.
A
Fill
fox,
on
the
other
hand,
has
a
wider
variety
of
metrics,
as
you
can
see
now.
What
I
have
up
here
on
the
slide
a
little
sale,
but
it
can
be
super
useful
or
at
least
very
cool,
to
understand
what
the
block
reward
is.
You
know
mining
over
24
hour
period
right
how
many
active
miners
there
are
right.
Like
those
things
like
it's,
I
I
couldn't
do
this.
If
I
was
in
an
energy
background,
I
couldn't
see
how
much
oil
was
actually
being
taken
out
of
the
ground.
A
A
This
was
all
in
the
future,
and
the
great
part
is
that
revolution
is
here
now
super
cool,
so
now
we're
on
to
calculating
block,
rewards
sort
of
again
how
we
make
our
money
right.
One
of
the
things
that
that
probably
will
lead
to
a
question
in
in
a
little
bit
later
is
are
block,
rewards
decrementing
over
time.
Are
they
going
down?
You
know
what
does
that
mean
for
the
future
of
the
network,
and
I
promise
we'll
answer
that,
but
one
of
the
key
things
kind
of
like
what
we
were
doing
with
collateral.
A
You
know,
rather
than
give
you
a
precise
answer.
Right
that
will
rapidly
be
obsolete,
is
that
the
average
block
reward
is
quite
simply
the
total
file
coin,
minted
divided
by
the
total
network
capacity.
Now
those
are
those
are
two
big
numbers
to
understand.
So,
let's
break
it
down.
The
total
filecoin
minted
is
a
function
of
the
amount
minted
the
prior
day
to
a
power
to
like
a
power
of
negative
decay.
Okay,
so
beyond
beyond
that,
beyond
the
the
traumatic
times
in
algebra,
when
I
had
to
go,
do
exponential
decay
functions
again,
liberal
arts,
major
right.
A
That
means
that
it's
going
down
all
right
that
numerator,
but
the
denominator
network
size
is,
if
we
do
our
jobs
as
the
network
grows,
should
go
up
right
over
time,
simple
math.
That
means
that
number's
going
down
that
overall
block
reward
now
here
I'll
go
pretty
fast,
because
it's
something
I
mentioned
before.
It's
that
you
know
block
rewards,
have
a
vesting
schedule,
something
that
if
you
work
at
a
startup,
also
kind
of
makes
sense,
you
know,
although
it's
a
little
better
25
of
the
rewards,
invest
immediately
and
the
other
75
invest
over
time.
A
Right
and
again,
you
can
see
at
the
bottom
it's
something
that
we
can
play
with
a
little
later,
even
during
the
internship
period,
there's
a
block
reward
calculator
and
that's
really
cool
for
simulating
certain
things,
and
I
really
am
a
big
fan
of
using
a
tool
like
that
to
help
you
understand
more
so
again
we're
back
to
that
that
big.
So
what
question
right
and
I'll
read
it
for
the
sake
of
everyone
else
right
if
block
rewards
decline
over
time,
how
does
filecoin
sustain
itself
without
the
incentive
for
storage
providers?
A
I
think
that's
important
for
me
because
that's
something
where
if
we
only
were
to
live
on
block
rewards-
and
maybe
I'm
editorializing
a
little
bit-
I
don't
see
how
it
would
grow
that
much
larger.
I
don't
see
how
you
do
anything
else,
but
necessarily
be
a
storage
provider
right
doing
those
deals
doing
those
other
things
I
think
are
fundamental
to
the
economy
and
to
like
the
protocol's
growth.
A
So
what
we're
going
to
do
now
is
we're
going
to
touch
on
two
things.
Both
storage
deal
pricing
and
retrieval
deal
pricing,
so
those
things
are
a
little
hard
to
go
through,
let's
say
in
depth
right
because
it's
going
to
be
up
to
you
as
a
storage
provider
and
negotiate,
but
I
think
it's
fair
to
say
that
there
are
no
predefined
prices
and
that
you
can
be
as
creative
as
you
want
now
this
is
recorded.
A
So
I
guess
you
can
quote
me
on
that,
but
there
will
be
a
market
clearing
price
for
each
storage
deal
and
there
are
going
to
be
ways
that
you
can
differentiate
yourself
both
on
like
pricing
and
on
cost
and
that's
where
it
becomes
an
actual
market,
and
that
feels
cool
right
and
that's
a
little
ahead
of
sort
of
the
retrieval
market.
What
we're
going
to
talk
about
a
little
bit
so
the
retrieval
deal.
Pricing
is
something
as
you
can
see,
I'm
again.
Borrowing
from
that
2020
white
paper.
A
I
told
you
all
to
read
it's
a
little
bit
less
advanced
a
little
bit
more
nascent
than
the
storage
market
right,
because
we
haven't
necessarily
had
to
do
this
at
scale,
but
it
should
operate
like
something
similar
right.
The
same
sort
of
key
things
that
drive
the
retrieval
market
are
going
to
be
pricing,
popularity,
locality
and
latency,
and
hopefully
because
of
filecoin.
There
will
be
other
areas
that
will
continue
to
distinguish
itself.
A
Finally,
we're
wrapping
up
with
sort
of
verified
storage
deals.
You'll
see
it
sometimes
as
fill
plus
right,
so
verified
storage
deals
are
a
further
incentive
layer
to
to
post
or
store
quality
data
on
the
network.
So
there
there's
a
very
simple,
simple
math
here
is
that
you
earn
10x
to
block
rewards,
but
you
also
have
to
post
10
times
the
collateral.
A
So
very
linear,
you
know
increased
risk,
increased
rewards
and
the
whole
goal
of
this,
and
the
reason
why
you
have
this
incentive
is
that
there
aren't
just
ways:
I'm
not
just
storing
again,
you
know
blank
copies
of
my
magic
r
collection
to
stay
with
a
theme
you
know,
but
we're
storing,
actual
verified,
useful
data
and
the
way
that
verification
mechanism
works
is
also
through
a
distributed
consensus.
So
you
like
it's
not,
it
would
feel
weird
right.
A
It
would
feel
strange
if
we're
doing
all
this
work
to
have
a
decentralized
storage
economy
right,
but
at
the
same
time,
in
order
to
get
the
most
rewards
in
order
to
store
the
most
precious
data
you
had
to
go
through
a
centralized
interface.
That
would
feel
strange.
That's
not
the
case
now.
There
are
other
examples
you
may
learn
and
you'll
probably
hear
about
in
espa
of
various
verified
deals.
They
can
come
to
universities,
they
can
come
from
various
locations,
but
they
all
follow
that
similar,
very
large
economic
incentive
yeah.