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CryptoEcon Series: Investigating FIL Circulating Supply
Key Insights
- Filecoin's token, FIL, has dynamic supply and emission rates based on several parameters; the relationship between FIL’s circulating supply and the maximum theoretical emission amount is often misunderstood.
- Scenarios of FIL tokenomics are simulated using historical data and derived assumptions of future onboarding of supply and demand of data services.
- Under the derived assumptions, simulations show FIL circulating supply reaching a peak of 1.2 billion FIL in 2044 (60% of maximum supply), followed by a continued decay.
- Driven by lower emissions over time, the decay in FIL circulating supply occurs consistently across simulated scenarios of low, medium, and high storage onboarding.
- Future sustainability of service node operators on Filecoin may depend on their ability to monetize data services by charging higher usage fees, instead of heavily relying on block rewards that are projected to decay over time.
Primer on Filecoin
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Mihai is Director of Research at Messari. Mihai leads Protocol Research, covering base layers, mid-layer infrastructure, DeFi, and consumer apps. Prior to joining Messari, Mihai was a tech entrepreneur and worked in AI at UBS and Swiss Re in Zurich. His background is in computer science and math. Mihai holds a PhD in information systems from ETH Zurich, Switzerland
Chase's interest in crypto lies at the intersection of economics, psychology, and social coordination.
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