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Filecoin creator denies strike allegations

Juan Benet, creator of the blockchain-based data storage platform Filecoin, has called "nonsense" allegations that miners of his token have been on strike since last week.

According to a report by 8btc.com, five of Filecoin’s largest miners have shut down thousands of oil rigs to protest the platform’s economic model. According to this system, miners have to use Filecoin tokens (FIL) as security when producing a block. However, many of them seem to have insufficiently needed tokens.

Crypto Twitter user Nico Deva was one of the first to claim that "a majority of miners" were on strike after claiming they had to buy Filecoin (FIL) tokens in order to use the mining capacity. This supposedly didn't go well with some of the best miners in China, leading to reports of a possible strike.

"A napkin calculation tells you early on that your mining system, which requires $ 20,000 of hardware, is also forcing you to buy more coins," Deva said, referring to Filecoin's first 2017 coin offering (ICO), which was in less than one Hourly over $ 200 million was raised. "In a country where ponzinomics is an art, the 2017 figurehead just (blew it away)," he continued.

However, Benet claimed on Twitter that it was not, stating that miners simply produce blocks more slowly:

“What happened is that miners grow more slowly than before the start. This is in large part because the network no longer subsidizes its mortgage and fee costs – fees now cost real money, and miners have to adjust the growth rate to match token flow. "

The Filecoin founder claimed the project advised many miners to "slow the growth rate down to match their token flow or take a break until they can afford to grow steadily".

"Part of the decline in miners' growth is because we followed our advice," said Benet.

He showed that data claimed blocks were still being produced, with the top miner grossing $ 352,000 in 24 hours while the top 50 reportedly earning $ 3.7 million in rewards. The filecoin creator stated that adding capacity to the network was "very difficult at the moment".

"There are some miners who no doubt want to go ahead and try to get more. If they could blame the community for giving them a lot more money, it might be worth a try. One thing that is quick to learn when there is a lot of money the point is that people get out of the woods to take it and they will try all kinds of tampering tactics. "

The platform's mainnet was launched last week and enables FIL tokens to be traded across major exchanges. The token price rose 118% in less than two days before falling nearly 80%. CoinMarketCap reveals that FIL is currently trading at $ 34.79 at the time of writing.

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