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A
So
this
talk
is
meant
to
be
a
deep
dive
on
file
quinn,
circulating
supply,
and
so
we're
going
to
go
deep
into
the
mechanisms
that
build
to
the
overall
circulating
supply
of
the
network
and
also
produce
a
few
example.
Scenarios
now
circulating
supply
is
difficult
in
in
file
coin,
because
it's
not
on
a
fixed
schedule.
Like
some
other
networks,
it
depends
on
many
many
variables,
and
so
the
goal
is
at
the
end
of
this
talk.
A
We
give
many
community
members
that
are
interested
more
tools
to
be
able
to
model
out
circulating
supply
for
them
for
themselves
using
their
own
assumptions
so
before
we
get
into
it
a
disclaimer
here.
The
models
that
we'll
present
here
are
based
on
many
assumptions
and
should
not
be
relied
upon
as
the
source
of
truth.
There
are
many
factors
that
can
and
will
affect
the
actual
numbers,
and
so
these
estimates
should
be
not
be
relied
upon
as
as
gospel
and
are
more
for
illustrative
purposes.
A
So
you
should
build
your
own
models
based
on
the
code
and
the
filecoin
spec,
and
so
as
you
embark
on
the
journey
of
understanding,
the
crypto
economic
models
for
filecoin
be
sure
to
read
engineering
filecoins
economy.
This
is
a
a
hefty
white
paper
of
all
the
mechanisms,
the
filecoin
spec,
of
course,
and
then
the
lotus
implementation
that
has
the
actual
mechanisms
written
to
the
code
itself.
A
In
this
talk,
we'll
go
through
a
quick
introduction
in
context
that
zx
will
walk
us
through
I'll
walk
through
some
critical
key
economic
mechanisms
that
are
embedded
in
the
code
and
align
stakeholders
for
the
long
term.
We'll
talk
about
some
circulating
supply
scenarios,
so
you
can
visualize
how
that
might
look
like
and
then
we'll
talk
about
a
few
key
takeaways,
so
zx
I'll
pass
it
off
to
you.
A
B
The
falcon
economy-
this
is
a
specific
island
economy,
representation
where
we
have
different
stakeholder
groups
coming
together
to
prove
raw
materials
to
produce
valuable
goods
and
services
on
falcon
and
export
that
to
the
outside
world
and
next
slide.
Please,
and
we
have
different
participants
and
they
hold
a
group
in
the
falcon
ecosystem,
and
everyone
is
working
together
to
make
falcon
a
success
and
there
are
different
stages
of
the
economy
right
now,
we
are
roughly
in
stage
one
eight
weeks
into
the
file
cloud.
A
B
Different
trajectory
as
time
goes
on
as
the
network
evolves
and
just
the
quick
sneak
peek
of
like
what
what
we
might,
what
we'll
be
showing
for
the
rest
later
in
this
presentation.
This
is
one
simple
model
that
we
made
for
projecting
falcon
circulating
supply.
There
are
many.
There
are
many
assumptions
that
go
and
run
into
this
model.
I
just
want
to
break
it
down
in
terms
of
like
there
are
different
parts
in
the
circulating
supply
where,
where
does
the
token?
Where
are
the
tokens
coming
in
from
so?
B
We
have
minting
and
resting,
which
you
see
the
two
lines,
and
then
tokens
will
also
leave
the
circulation
through
the
locking
mechanisms
which
we'll
go
into
in
greater
details
and
then
there's
some
there's
also
narrow
transaction
fee,
because
the
file
called
network
is
a
utility
network
and
the
falcon
token
is
meant
to
be
used.
So
as
participant
interact
with
the
network,
there
will
be
they'll
always
involve
using
the
falcon
token.
B
So
our
goal
today
is
to
shed
light
on
the
falcon,
circulating
supply
and
troops
to
be
told.
Well,
projecting
circulating
supply
is
difficult
and
it
really
depends
on
the
trajectory
of
the
system.
It
depends
on
and
it's
sort
of
different
depending
on
the
economic
system,
for
example
like
u.s,
and
to
money
supply,
which
could
be
an
equivalent
of
circulating
supply.
Well,
it's
somewhat
unpredictable.
Who
would
expect
what
would
happen
in
2020
back
in
2016.
B
and
similarly
there's
some
notion
of
a
bitcoin
supply
curve.
Bitcoin
has
like
a
max
cap
and
it's
growing
pretty
rapidly
from
its
beginning,
and
then
we
have
ethereum
well.
Ethereum
is
growing
in
a
different
in
a
slightly
different
model,
where
there's
right
now,
there's
no
hard
cap
on
the
ethereum
supply,
but
it's
growing
at
its
own
rate.
Then
we
there's
another
kind
of
like
framework
to
think
about
cycling
supply,
it's
sort
of
similar
to
a
traditional
stock
concept
of
shares
outstanding.
B
It's
very
hard
to
project
that
back
in
2016
as
well,
and
it's
especially
hard
in
foul
coin,
because
the
falcon
token
is
meant
to
be
used,
so
it
needs
to
be
used
and
the
falcon
minting
is
tied
to
the
network
utility,
which
is
which
is
reflected
in
the
stages
of
economy
chart
and
the
narrow
utility
is
also
in
the
hands
of
the
community,
and
the
last
point
here
is
also
important
to
touch
on.
Well,
we
have
mechanisms
to
align
everyone's
incentive
to
bring
people
to
work
for
the
network
go.
B
This
complex
system
tends
to
be
interconnected
and
changing
one
assumption
might
have
counter
intuitive
and
unintended
impact
on
some
other
parts.
So
all
these
make
the
reasoning
about
cycling
supply
a
lot
more,
a
bit
more
challenging,
and
it's
also
important
to
distinguish
the
concept
of
a
max
supply
and
a
circuiting
supply.
B
Well,
because
sometimes
people
may
use
this
reason.
Thinking
in
max
supply
is
simple,
but
society
is
complex.
Economy
is
complex.
Lots
of
thing
is
complex.
Making
a
simple
argument
on
a
very
complex
problem
sometimes
is
naive
and
foolish,
but
I
think
max
apply
at
the
end
of
the
day.
It's
just
a
cap
right
like
there's.
B
Most
of
the
shares
for
most
like
large
cap
stock,
there's
no
max
supply,
and
first
and
and
then
from
the
transition
and-
and
the
next
question
is
when
would
the
max
supply
be
reached?
Even
even
this
max
supply
can
be
reached
in
the
first
place,
right
like
in
the
case
and
max
supply
is
really
really
is
a
asymptotic
concept
right.
B
It's
in
the
limit
in
bitcoin
asymptotically,
there's
a
max
supply,
but
you'll
be
reached
many
many
even
many
years
from
today,
even
though,
like
we
are
10
years
into
more
than
10
years
into
the
bitcoin
network
and
the
distinction
between
the
max
supply
and
the
circulating
supply
is
so.
How
does
the
supply
in
general
enter
circulation?
And
how
does
if
there's
any
other
mechanism
where
we
take
tokens
out
of
the
circulation?
B
So
now
we
unders
we
try
to
like
today's
talk.
We
try
to
break
it
all
down
for
for
our
audience
and
to
shed
more
light
on
how
to
interpret
understand
falcon
circulating
supply.
So,
as
you
mentioned,
there's
also
there's
token
inflow.
So
there
are
two
main
inflow
into
the
falcon
circulation.
One
is
storage,
mining
mining
in
general,
but
right
now
is
storage
mining
and
the
key
principle
which
we'll
talk
on
late,
we'll
talk
about
colin
will
walk
us
through
more
later.
A
As
cx
mentioned,
some
of
these
mechanisms
will
add
to
circulating
supply
as
inflows,
and
some
of
them
will
subtract
from
circulating
supply
as
outflows
things
like
network
transaction
fees
and
and
locking,
and
things
like
that,
so
I'll
walk
through
a
few
of
the
primary
ones.
But
of
course
please
view
the
falcon
spec
and
the
code
itself
for
a
more
complete
view.
A
Now,
when
you
take
a
a
step
back
and
think
about
the
max
supply
of
filecoin
70
of
the
total
token
allocation
or
about
1.4
billion,
tokens
is
tied
towards
mining
and
the
mining
minting
curve,
but
that's
a
little
misleading
when
you
really
double
click
on
that.
There
are
three
components
of
that:
1.4
billion.
A
A
So
none
of
the
baseline
minting
is
really
guaranteed.
It
has
to
be
earned
by
the
miners
within
the
network
as
they
reach
certain
targets
with
simple
minting.
That's
the
330
million
tokens
in
the
middle.
This
is
more.
This
is
more
or
less
guaranteed
and
released
on
a
six-year
half-life
based
on
time
a
six
year.
Half-Life
means
that
97
of
these
tokens
will
be
released
in
approximately
30
years
time.
A
So
that's
kind
of
a
rough
time
gauge
of
how
those
tokens
will
be
released
and
then
the
last
component
is
300
million
tokens
that
are
called
the
mining
reserve
and
this
is
to
be
determined.
None
of
this
currently
enters
circulating
supply,
but
it
will
be
up
to
the
community
to
decide
how
these
tokens
would
be
released
and
which
sets
of
stakeholders
should
be
incentivized
in
the
future.
A
So
if,
if
you
try
and
model
out
what
the
minting
curve
might
look
like
on
the
bottom
here,
you'd
be
modeling
total
network
storage
capacity
on
a
logarithmic
basis.
So,
as
the
the
total
network,
baseline
and
capacity
increases,
then
more
of
the
baseline
will
be
increased
on
the
top
graph.
The
bottom
line
is
the
simple
minting
curve.
So
that's
the
one
that's
guaranteed
and
the
top
curve
is
the
baseline,
which
is
really
dependent
on
the
targets
that
we
talked
about,
and
so
only
330
million
of
the
mining
of
the
minting
curve
is
guaranteed.
A
So
if
you
think
about
a
few
scenarios
in
six
years,
the
network
would
actually
need
to
reach
160
epibytes
of
capacity
that's
160
times
where
we
are
today
in
order
to
reach
the
maximum
minting
curve
of
550
million
file
coin
baseline
plus
simple
in
20
years.
The
network
would
actually
have
to
reach
a
yottabyte
of
capacity
in
order
to
reach
the
maximum
minting
curve
of
a
billion
file
coin,
approximately
in
20
years
now.
To
put
that
in
context,
a
yottabyte
is
a
thousand
times
larger
than
the
total
cloud
storage
industry
today.
A
A
So
when
the
soft
investors
invested
back
in
2017,
they
each
chose
a
different
time
period
to
best
their
their
staff
tokens
over.
They
could
choose
six
months
or
one
year
or
two
years
or
three
years,
depending
on
what
the
what
they
were
looking
to
align.
Now,
I'm
really
proud
to
say
that
the
vast
majority
of
staff
sap
tokens
best
over
three
years.
That's
58
of
the
total
pi
best
over
three
years,
which
really
indicates
the
long-term
alignment
that
a
lot
of
these
staff
investors
have
with
the
with
the
file
quinn
network
itself.
A
Now,
if
you
were
to
model
this
out
on
a
monthly
investing
basis,
the
first
six
months
of
the
network
so
including
the
last
two
months
since
network
launch
and
the
next
four
months
till
about
april
15th,
the
network
is
really
vesting
or
the
soft
holders
are
investing
at
peak
peak
levels.
They
invest
about
10
million
tokens
per
month
in
the
first
six
months,
which
includes
the
last
two
months.
A
In
the
next
four
months,
and
that's
because
we're
settling
up
those
six
months-
soft
holder
tokens
now
on
april
15th
when
those
six-month
safs
are
settled
that
monthly
vesting
drops
from
about
10.1
million
to
4.6
million
and
at
12
months,
when
the
one-year
staffs
are
settled
that
drops
again
from
4.6
million
to
2.7
million
around
october
15th,
and
so
when
you're
thinking
about
how
to
model
some
of
the
various
stakeholders.
This
might
help
you
figure
out
some
inputs
into
that
as
well.
A
Now
the
mining
rewards
also
best
over
some
period
of
time
as
well
to
encourage
minors
to
think
about
the
long-term
health
of
the
network.
So,
for
example,
75
of
the
block
awards
earned
by
any
minor
best
linearly
over
180
days
or
about
six
months
and
25
of
those.
Those
tokens
are
available
immediately
to
basically
improve
minor
cash
flow
and
profitability,
and
so
they
can
reinvest
that
into
the
system.
A
Of
course,
all
of
the
earned
rewards
are
subject
to
slashing
throughout
the
lifetime
of
the
sector,
and
so
unreliable
storage
reduces
the
utility
of
the
network
and
hence
block
rewards
earned
by
these
sectors
will
be
slashed
and
then
other
investing
groups
like
including
the
falcon
foundation.
The
protocol
labs,
300
million
foul
coin.
All
of
those
vests
over
the
long
term
are
linearly
over
six
years
and
typically,
when
you
know
various
groups,
incentivize
ecosystem
partners
through
grants.
Those
token
grants
also
best
over
six
years.
So
ecosystem
partners
are
long-term
aligned
as
well.
A
A
So
these
two
concepts
I'll
explain
individually
collateral,
is
the
concept
that
miners
must
lock.
Filecoin
tokens
for
consensus,
security,
storage,
reliability
and
contract
guarantees,
and
this
kind
of
broadly
falls
into
two
buckets
pledge
collateral
and
deal
collateral,
and
so
the
slashing
concept
follows
that
collateral
concept,
which
basically
means
that
the
collateral
and
all
the
file
coin
earned
by
earned
by
through
rewards
through
minors
are
subject
to
slashing
throughout
the
lifetime
of
the
sector.
This
basically
penalizes
bad
behavior
and
so
unreliable
storage
reduces
the
utility
of
the
the
network.
A
A
If
a
miner
wants
to
make
sure
that
they
are
seen
as
more
trustworthy,
they
will
lock
more
deal
collateral
and
enhance
those
deals
will
have
more
security
behind
them.
Great.
The
next
concept
is
around
falcon
plus,
and
this
is
aligning
participants
with
useful
storage.
Now
filecoin
plus,
is
an
interesting
program.
A
It
basically
allows
a
network
of
notaries
to
notarize
data,
and
when
miners
store
that
data,
that's
part
of
the
filecoin
press
program,
they
have
the
opportunity
to
earn
10
times
the
block
reward
compared
to
you
know
a
minor:
that's
not
storing
filecoin
plus
data
now.
Consequently,
they
will
also
have
to
lock
10
times
the
amount
of
collateral
and
ensure
that
those
deals
are
are
guaranteed
and
subject
to
slashing.
A
So
this
encourages
a
few
incentives,
one.
It
encourages
miners
to
store
real
data
and
some
of
the
most
valuable
data
on
earth.
Those
notaries
can
add
some
of
the
most
valuable
data
to
the
file,
quinn
plus
network
and
hence
incentivize
those
miners
to
earn
10x
the
block
reward
versus
storing
regular
data.
Two.
It
actually
encourages
miners
to
add
more
data
to
file
coin
plus,
so
the
data
on
falcon
plus
will
be
scarce,
and
so
not
every
miner
will
be
able
to
have
access
to
that.
A
So
it
provides
a
strong
mechanism
to
encourage
all
participants
and
minors
to
invest
in
finding
those
data
sets
that
are
most
valuable
to
the
network
into
the
into
humanity
and
putting
them
on
falcon
plus.
So
more
miners
can
get
access
to
them
and
three.
It
encourages
reliability.
Miners
have
to
lock
ten
times
the
the
amount
of
collateral
when
storing
filecoin
plus
deals,
and
hence
they
can
incur
up
to
10x
the
penalty
if
the
storage
is
unreliable.
So
again
it
doubles
down.
A
Now
it's
only
been
two
months,
but
the
falcon
daily
token
consumption
has
really
varied
from
something
that
is
very
low
on
a
daily
basis
to
some
days,
and
these
are
rare
as
high
as
180
000
file
coin
consumed
per
day,
which
might
be
a
sign
of
a
thriving
economy
and
one
will
give
a
speech.
You
know
in
a
couple
minutes
on
how
to
think
about
that
for
the
future
great.
B
Great
thanks,
colin,
so
to
start,
let's
walk
with
like
some:
what
kind
of
input
that
they'll
enter
in
this
into
this
rather
simple,
circulating
supply
model,
so,
first
of
all,
it's
like
the
years
of
projection
and
then
the
annual
network
capacity
growth
rate.
The
first
scenario
is
mostly
anchoring
towards
the
current
growth
rate,
which
is
more
than
700
growth
a
year
and
then
and
the
growth
rate
will
impact
two
things
where
one
is
the
minting
as
colin
mentioned
earlier.
B
Just
how
fast
can
we
approach
baseline
as
an
approximation
to
the
network
utility
and
also,
as
people
grow
faster?
They
will
also
require
collateral
and
like
and
network
transaction
fee,
and
then
there
is
the
percentage
of
capacity
in
the
falcon
plus
deals
which
will
influence
pledge
and
also
potentially,
the
amount
that
might
be
slash
and
falcon
is,
and
this
clutter
really
meant
to
provide
reliable
storage
guarantee
on
the
falcon
network.
B
The
goal
to
network
is
to
make
sure
data
is
stored
safely,
like
once
in
earlier
talk
once
miner
have
a
sector
that
is
a
sacred
promise
to
the
network
and
to
the
client,
and
we
must
incentivize
data
to
be
stored
safely
and
strongly
disincentivize
any
losing
of
any
loss
of
clients,
data
and,
as
we
mentioned
earlier
in
the
previous
talk,
falcon
network,
does
not
detect
a
specific
way
of
interacting
with
the
system.
It's
an
economy,
it's
an
ecosystem,
so
there
could
be
regular
deals
on
the
network
as
well.
B
So
you
have
enough
for
a
percentage
capacity
in
regular
deals,
and
this.
This
is
a
very
important
thing
for
the
overall
health
of
the
ecosystem,
and
then
we
we
do
an
average
daily
network
fee
which
is
roughly
across
this
projection.
How
much
file
coin
will
be
paid
network
fee
a
day
so
right
now
the
average
is
about
150k
per
day
on
the
main
net,
but
in
the
last
in
the
last
few
weeks.
A
B
B
B
Projecting
projecting
falcon
cycling
supply
is
hard,
so
there's
a
some
other
scenario
that
just
want
to
like
go
through
pretty
quickly
as
examples
of
how
some
of
the
different
assumptions
may
change
a
second
in
circulating
supply,
so
the
other,
the
other
another
scenario
here
would
be
high
falcon,
plus
demand
high
network
fee.
People
really
want
to
use
the
network
for
storage,
strong
demand
for
using
a
network
strong
demand
for
a
solid
demand,
so
70
percent
of
capacity
will
be
in
falcon
plus
deals
over
time
and
higher
network
fee.
B
As
this
demand
for
user
now
is
really
strong
and
there's
another,
and
then
that
would
lead
us
to
another
scenario
for
the
circulating
supply
in
six
years.
Then
we
can
take
a
look
at
this,
as
the
network
goes
on
and
the
cycling
supply
will
change
depending
on
the
collective
behavior
of
the
community.
B
A
Perfect
and
we're
running
short
on
time,
so
I'll
go
through
these
quickly,
but
you
know
I
did
want
to
leave
the
group
with
a
few
key
takeaways
and
I'll
go
through
them
individually
and
they're
for
them.
One
is
that,
while
we
talked
a
lot
about
supply
in
this
talk,
the
most
important
goal
for
the
community
is
to
make
the
network
as
useful
as
possible.
There's
a
tremendous
amount
of
activity.
Today
there
are
over
100
teams,
building
on
falco
and
over
250
teams
entering
the
ecosystem
through
accelerators
and
hackathons,
and
mentorship
programs.
A
There's
emerging
retrieval
use
cases
and
d5
use
cases.
There
are
ecosystem
funds
forming
to
back
startups
within
the
ecosystem,
but
it
the
main
thing
to
increase
the
value
of
the
network
itself
is
to
focus
on
increasing
use
cases,
tooling,
infrastructure,
financial
efficiency,
scalability,
etc.
And
so,
while
the
majority
of
this
talk
talked
about
circulating
supply,
let's
not
lose
fact
of
the
primary
driver
of
the
utility
of
filecoin,
which
is
making
the
network
as
useful
as
possible.
A
Two
filecoin
is
really
a
utility
token
with
real
value,
and
it's
not
meant
for
a
vehicle
for
speculation.
A
lot
of
file
coins
mechanisms
really
reward
long-term
behavior.
We
talked
about
those
you
know
in
detail
today,
long-term
investing
to
align
with
the
long-term
health
of
the
network.
You
know
you
know,
minting
curves
that
are
variable
depending
on
the
network
performance,
if
you're
a
participant
that
is
really
just
looking
to
participate
in
file
coin
on
a
short
term
basis.
A
I
wouldn't
recommend
it
really
that
all
the
mechanisms
embedded
within
the
code
of
filecoin
is
is
are
meant
to
reward
long-term
behavior.
Three.
There
are
a
number
of
different
ways
to
participate
in
the
filecoin
economy.
You
can
build
applications,
you
can
build
developer,
tooling,
infrastructure,
you
can
store
data,
you
can
participate
in
falcon
plus
you
can
engage
in
storage,
mining
or
retrieval
mining.
You
can
invest
in
emerging
projects
and
startups
through
ecosystem
funds
or
or
through
other
capital
forces.
A
A
And
fourth,
while
we
talked
a
lot
about
circulating
supply
in
this
talk,
it's
really
important.
To
note
that
circulating
supply
is
in
the
hands
of
the
community.
The
community
decides
the
minting
rate.
The
community
decides
how
easy
and
cost
effective
it
is
to
onboard
demand
onto
the
network.
The
community
decides
the
pace
of
network
transaction
fees
or
the
success
of
falcon
plus
or
the
most
efficient
way
to
allocate
capital
within
the
ecosystem,
and
so
please,
you
know,
take
ownership
of
the
network.