How many fil coins will be destroyed in 2024?

Filecoin is expected to destroy 700,000 FIL in 2024, with the supply controlled through the built-in "Proof of Time and Space" destruction mechanism. This mechanism is designed to incentivize miners to store data reliably and maintain the value of the network by reducing the amount of FIL in circulation, thereby ensuring its long-term stability. Burning FIL increases token scarcity, maintains its value, and incentivizes miners to store data safely.

Number of Filecoin destroyed in 2024

Filecoin is a distributed file storage network that uses FIL as its native generation currency. The Filecoin network has a built-in mechanism designed to control the supply by burning FIL tokens.

Filecoin is expected to destroy 700,000 FIL in 2024. This number is based on the current burn rate and expected growth of the network.

Destruction Mechanism

Filecoin’s destruction mechanism is called “Proof of Space and Time”. Miners must provide proof for data stored on the network that the data has been stored reliably over a period of time. If miners fail to provide evidence, their FIL collateral will be destroyed.

Destruction rate

Filecoin’s destruction rate is currently approximately 0.72%. This means that for every FIL block mined, approximately 0.72% of FIL is destroyed. The burn rate increases as the network grows.

Purpose of Burning

The purpose of burning FIL tokens is to control the supply and preserve the long-term value of the network. By reducing the amount of FIL in circulation, it prevents inflation and ensures the continued stability of the network.

Impact on the Network

Destroying FIL is expected to have the following impacts on the Filecoin network:

• Increased scarcity:Destroying FIL reduces the supply in circulation, thereby increasing the scarcity of the token.
• Maintaining Value: Burning helps maintain the value of FIL because it reduces the number of tokens available on the market.
• Incentivize miners: The destruction mechanism incentivizes miners to store data safely and reliably because their FIL collateral is associated with the risk of destruction.

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