Filecoin plans to shift block rewards toward paid storage

Filecoin to gradually shift block rewards to paid storage

Filecoin Foundation said on Oct. 15 that a change to the network’s reward mechanics will direct a growing share of block rewards to services that bring paying customers onto the network. The proposal, called Solstice and written as FIP-0118, will lower the share for pure mining over about nine quarters while increasing the service share that rewards paid storage use. “The Filecoin flywheel is connected end to end now, and it's starting to build momentum,” said Molly Mackinlay, CEO of FilOz.

The plan starts with 95% of every block reward going to consensus mining and 5% to services. Over roughly nine quarters the mining share will step down to a floor of 50%. The service share will rise in five‑percentage‑point jumps only when quarterly Filecoin Pay volume clears a set dollar target and is capped at 50%. Any service share that is not earned is burned instead of redistributed.

Key numbers

• Consensus mining share: 95% now, steps down to 50% floor over ~9 quarters


• Service share: 5% now, reaches 10% after first quarter, rises by 5% points when volume target met, max 50%


• Unearned service share: burned


• Candidate activation: Oct. 19, 13:00 UTC, epoch 6470280 (still provisional)


• Calibration testnet upgrade: Sept. 28 (nv29)


• FIL price: $1.15 on Oct. 16, +12.1% in 24 hours, market cap $961 million


• Annual FIL releases reduced by about 68 million after six‑year vesting ends


• Daily new FIL entering circulation projected to fall by roughly 75%

What the proposal says

The Filecoin Foundation blog post calls the change one of the most significant adjustments to the network’s reward system since launch. Under FIP‑0118 the consensus stream starts at 95% and steps down toward a 50% floor over nine quarters. The service stream begins at 5% and reaches 10% by the end of the first quarter. After that it rises in five‑percentage‑point increments only when quarterly on‑chain Filecoin Pay volume clears a set dollar target, and it cannot exceed 50%.

The plan removes the Fil+ verified‑deal system. Datacap applications and allocator reviews will end. New sectors will join on equal terms and earn consensus rewards in proportion to the storage they commit. Existing sectors keep their current power and terms.

Any weight changes that are not automatic require a published FIP, sign‑off from two multisig signer sets, and a seven‑day hold enforced at the base layer. Step‑ups triggered by hitting the volume target execute automatically and cannot be cancelled.

Timeline for activation

The draft was created on July 14 and is open for community feedback. A tracking issue lists Oct. 19 at 13:00 UTC, epoch 6470280, as a working candidate for mainnet activation. The final activation date has not been decided yet. Calibration testnet is scheduled for the nv29 upgrade on Sept. 28.

New Filecoin products for enterprises

Filecoin highlighted three product groups. Fil One is an S3‑compatible object storage service with no egress fees on paid plans. It targets AI infrastructure, automotive, banking and government buyers.

A second set of tools is aimed at AI agents. They include a Filecoin MCP server and a command‑line client that lets agents buy storage programmatically. Providers prove data possession and payments settle on‑chain.

A third set moves content that is pinned on IPFS onto Filecoin while preserving content addressing.

Integral Spacetime, launched on Oct. 14, plans to buy businesses that handle large storage workloads and move that data onto Filecoin. It will reinvest recurring revenue into new capacity. No founders, investors or funding amount were disclosed.

Supply‑side impact

The reward change follows the end of six‑year vesting schedules for Protocol Labs and Filecoin Foundation allocations from the 2020 genesis. The Defiant reported earlier that the wind‑down removes about 68 million FIL from annual releases. Modeling cited in the Filecoin post suggests daily new FIL entering circulation will fall by roughly 75%.

Why this matters

The shift ties FIL issuance more directly to paid storage demand. By lowering mining rewards and rewarding customers who use paid services, the network aims to encourage adoption of Filecoin’s storage solutions. The removal of Fil+ also simplifies the deal process for new users.

Sources

• The Defiant