Filecoin Virtual Machine Drives a 64% Surge in Active Deals and Introduces New Usage Cases
Despite the SEC litigation against Coinbase and Binance, Filecoin, a decentralized data service platform, experienced a 64% increase in active deals in the second quarter of 2023. The storage capacity of Filecoin remained stable, fluctuating between 5.05 PiB and 6.14 PiB during the last quarter.
The coin’s storage utilization increased from 4% in the first quarter to nearly 8% in the second quarter, resulting in a 12% decrease in storage capacity. The fees’ revenue grew by 67% in USD and heavily influenced by a 60% increase in large dataset clients and a 64% increase in active storage deals.
Although the FIL base fees increased threefold, the penalty fee decreased by 17% compared to the previous quarter. This decrease was due to factors such as the termination of basic storage units by storage providers before the agreed storage period, which had previously caused high penalty fees.
Filecoin saw a 7% decrease in supply-side revenue, down to 17.6 million FIL in the second quarter. Block rewards accounted for more than 99.9% of FIL supply-side revenue, with tips making up the remaining negligible percentage.
The minting mechanism of new FIL tokens is based on both baseline and exponential decay models. The baseline model accounts for 30% of total tokens minted and provides high block rewards to motivate participation. The exponential decay model accounts for 70% of new tokens and allocates block rewards relative to storage capacity growth.
Filecoin uses the Filecoin Virtual Machine (FVM), which enables new use cases such as perpetual storage, liquid staking, and decentralized computation. The virtual machine addresses the limitations of centralized data storage.
Filecoin operates as a decentralized data service platform, serving both the supply and demand of the storage market. The native token, FIL, allows users and applications to access data-related services. The Filecoin storage network is built on the InterPlanetary File System (IPFS), which is a peer-to-peer version of Amazon S3.
Overall, despite the challenges posed by SEC litigation, Filecoin has shown growth in active deals and storage utilization. The platform’s native token, FIL, enables access to various data-related services, and the Filecoin Virtual Machine brings additional functionality to the network.