The six-year vesting period for the Filecoin network, which began with its mainnet launch in 2020, has come to an end. With the completion of the schedule, the initial distributions, which resulted in approximately 68.3 million FIL entering circulation annually, will conclude.
According to current calculations, the annual gross FIL supply, consisting of earnings distributions and mining rewards, could decrease from approximately 88.9 million FIL to 20.6 million FIL if current production rates are maintained. This corresponds to a decrease of approximately 77 percent in new annual supply. Annual growth relative to circulating supply is also estimated to fall from 9.7 percent to 2.2 percent.
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There is a one-day difference in the end date among the sources. While Filecoin’s official announcement states October 15th, some technical calculations indicate October 14th. Furthermore, the change will not completely stop FIL production. Block rewards given to storage providers will continue; only the large earnings stream from the initial distribution will end.
The price of FIL has risen by approximately 40% in the last month and is currently trading at $1.09 at the time of writing.
*This is not investment advice.
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