Tokenization of Hash Power: Do you know something about its underlying investment value?
The trend of hash power tokenization is underway.
To name but a few, BTCST, which is pegged to Bitcoin hash power, EHash, which is pegged to Ethereum hash power, SFIL, which is pegged to Filecoin hash power.
So, what are the differences and advantages of buying a hashrate token compared to buying cloud hash power and mining machines?
Is it worthwhile investing in the hashrate token?
What is the appreciation logic of hash power?
In this article, we will take SFIL (The World’s First Filecoin Standard Full Hashrate Token) as an example and analyze its underlying investment logic.
I. The background of the birth of SFIL
It is no exaggeration to say that the Filecoin mining market is a total mess.
Since the Filecoin mining market is still in its early stage and lacks necessary industry standards, the threshold for ordinary users to participate is pretty high. All the mining parameters such as hash power cost, token staked and GAS fees, encapsulation period, mining period, mining efficiency are hard for users to grasp in a short time. Additionally, you may even encounter an extremely low mining efficiency or receive no coins at all.
The SFIL standard hashrate token is pegged to real Filecoin hash power, thus providing users with a high-efficiency full storage hash power service featuring no tokens staked, no encapsulation period, and mining upon token purchasing.
Each SFIL is pegged to 0.01T full hash power, and you can join Filecoin mining with only $10. SFIL makes Filecoin mining simple, convenient, and easy to master. More importantly, it has reliable hash power backings and high mining efficiency.
Currently, SFIL’s hash power supporter owns 66P+ hash power and the mining nodes disclosed are f01782 and f035364, respectively. Additionally, f01782 ranks top 3 in Filecoin Space Race. SFIL has simplified Filecoin mining in all aspects to allow more money to flock in.
What’s more, SFIL has many advantages over regular cloud hash power and mining products!
II. Advantages of SFIL Compared with Cloud Hash Power and Mining Machines
1. Perpetual Mining
Compared with existing hash power products with a 365-day or 540-day service period, SFIL launched a perpetual mining service. As long as one holds SFIL in the official wallet, he/she can continuously get free FIL each day, which significantly prolongs their mining duration and overall mining revenue. It is impossible to achieve with most existing cloud hash power products.
2. Higher Revenue
According to Filecoin's official rules, 25% of the daily mining revenue will be distributed immediately, and the rest within 180 days.
As we all know, SFIL has been listed on Pancake Swap on November 1 and the linear releasing part of mining revenue has been accumulated for 150 days. Apart from the mining revenue of the starting day, users can also get the linear releasing part 30 days later.
For example, Jack bought some hash power and the current mining efficiency is 0.02282 /T/D:
If he bought 100T cloud hash power:
The mining revenue he will get on the first day: 100T*0.02282*25%=0.57 FIL
If he bought 10,000 SFIL (Equals to 100T hash power):
When the superimposing index reaches 180X, the mining revenue he can get is 100T*0.0251 = 2.51 FIL.
Therefore, you can learn that SFIL will beat the cloud hash power by 1.94 FIL concerning mining revenue.
3. Free to Trade
Currently, SFIL DApp (URL: https://dapp.sfil.io/) has been launched on BSC, and token trading is also available on Pancake Swap. You can sell SFIL for cash in the secondary market whenever you want.
When buying Filecoin cloud hash power and mining machines, we have to invest tons of money and the payback period is relatively long. As for SFIL, it has a flexible cash-in and cash-out mechanism which greatly improves the fund-use efficiency of global miners.
4. SFIL's Hashrate Strengthening Mechanism
As long as you finished purchasing SFIL on Pancake Swap, the mining revenue will be distributed at 19:00(UTC+8) the next day. SFIL DApp will automatically check the total amount of SFIL on the BSC. If the depositing amount is lower than 70% of the circulating supply, then we’ll activate the mining revenue guarantee mechanism.
For example, the circulating supply of SFIL is 2 million and the amount of SFIL on the BSC is 700 thousand, the depositing percentage here should be 35%. Since the number is lower than 70%, users can still get the corresponding mining revenue of 1.4 million SFIL. If the current percentage is 10%, you'll get 7X earnings.
By designing SFIL’s hash power strengthening mechanism, we created an equilibrating market that links miners and investors. Price games will be triggered repeatedly between mining-inclined users and investment-inclined users due to their demand diversity. Hence, SFIL will have excellent liquidity in the secondary market.
That is a delicate design based on ‘Game Theory’.
III. SFIL’s Underlying Value and Asset Appreciation Logic
As we all know, each SFIL is pegged to authentic Filecoin hash power. Therefore, it has no liquidation risks, which can not be guaranteed by 99% of other tokens.
The cost of Filecoin hash power was composed of three parts: storage hardware, pre-staked FIL, and GAS fees charged. SFIL’s price will undoubtedly go up with the rising costs.
Therefore, we firmly believed that SFIL’s price will gradually rise with the growth of the Filecoin hash power market and Filecoin Ecosystem.
Moreover, we can conduct perpetual mining with SFIL. Hold SFIL and you’ll enjoy benefits brought by the growth of the Filecoin hash power market.
To sum up, SFIL is a type of high-quality hash power asset that can be used for Filecoin mining and long-term investment.
We firmly believe that more and more people will find the intrinsic value of SFIL with the development of the Filecoin Ecosystem.