FileFileGo Cryptoeconomics Document

1 June 2023

Last update: 30 June 2023


This document presents the comprehensive cryptoeconomic model of FileFileGo. It elucidates the cryptoeconomics, incentive mechanisms, consensus protocol, and governance structure of the project. By outlining these design principles, FileFileGo aims to provide a detailed understanding of the economic incentives driving its cryptocurrency ecosystem.

1. Introduction

The purpose of this document is to unveil the cryptoeconomic framework underlying FileFileGo. By delving into the coin, consensus protocol, incentive mechanisms and governance structure, this document offers a deep dive into the intricate workings of the project. It serves as a guiding reference for stakeholders, contributors, and the wider community to grasp the fundamental design principles propelling FileFileGo forward.

2. Coin

2.1 Coin Utility

The utility of the FFG coin within the FileFileGo ecosystem is multifaceted, serving various purposes to enable a seamless and robust network experience.

Firstly, FFG allows nodes to pay for data storage and retrieval from storage providers. Nodes can utilize the coin to compensate storage providers for storing their data and to access the stored data when needed. This incentivizes nodes to participate as storage providers, expanding the network's storage capacity and ensuring efficient data availability.

In addition, FFG is used to pay transaction fees within the network. Users are required to pay transaction fees denominated in FFG when executing various actions, such as data storage and retrieval, as well as other transactions on the blockchain. Transaction fees contribute to network security, incentivize efficient resource allocation, and maintain a healthy transaction throughput.

Furthermore, FFG enables users to execute channel-related actions on the blockchain. For example, users can create channels by paying a small fee to register. Channels provide a mechanism for on-chain data and metadata storage.

By encompassing these functionalities, FFG serves as a versatile medium within the FFG ecosystem, facilitating data storage, retrieval, transaction processing, and channel-related activities, ultimately enhancing the overall utility and efficiency of the network.

2.2 Coin Supply

The total supply of FFG will be strictly capped at 500 Million.
Validation/Stake Reward: 40 FFG per Block.
Supply Decrease Rate: Divide by 2 every 24 months.

Year Reward * Blocks Per Year Annual Block Reward Commulative
1 40 * 3153600 126,144,000 FFG 126,144,000 FFG
2 40 * 3153600 126,144,000 FFG 252,288,000 FFG
3 20 * 3153600 63,072,000 FFG 315,360,000 FFG
4 20 * 3153600 63,072,000 FFG 378,432,000 FFG
5 10 * 3153600 31,536,000 FFG 409,968,000 FFG
6 10 * 3153600 31,536,000 FFG 441,504,000 FFG
7 5 * 3153600 15,768,000 FFG 457,272,000 FFG
8 5 * 3153600 15,768,000 FFG 473,040,000 FFG
9 2.5 * 3153600 7,884,000 FFG 480,924,000 FFG
10 2.5 * 3153600 7,884,000 FFG 488,808,000 FFG
11 1.25 * 3153600 3,942,000 FFG 492,750,000 FFG
12 1.25 * 3153600 3,942,000 FFG 496,692,000 FFG
13 0.625 * 3153600 1,971,000 FFG 498,663,000 FFG
14 0.625 * 3153600 1,971,000 FFG 500,634,000 FFG

2.3 Coin Distribution

The distribution of the FFG coin follows a transparent process:

  1. Storage Provider Incentive Programs
    Allocate coins to incentivize storage providers to join the network.
  2. Development/Team
    Allocate coins to incentivize and retain the core team members, invest in research and development, and prioritize security measures.
  3. Marketing/Exchange Listing
    Marketing efforts, including digital advertising, content creation, and community engagement.
  4. Community Initiatives
    Allocate coins for community grants, partnerships, education, and rewards to foster a vibrant and engaged community.
  5. Infrastructure
    Allocate coins to strengthen the project's infrastructure, including network nodes and blockchain infrastructure.

The proposed coin distribution plan mentioned above is designed to be implemented until June 2024. However, it's important to recognize that the cryptocurrency market is dynamic and can change rapidly. Therefore, during this period, we will regularly review and reassess the numbers based on how the network is performing and evolving. This will allow us to make any necessary adjustments to the allocation percentages. By staying flexible and adaptable, we can ensure that our resources are allocated effectively and in line with the changing needs of the project and its community.

3. Consensus Protocol

FileFileGo embraces a Proof-of-Authority (PoA) consensus protocol to validate and secure transactions within the network. PoA, chosen for its efficiency, scalability, and potent defense against malicious actors, employs a select group of trusted validators known as authorities. These authorities, distinguished by their reputation, expertise, or stake in the network, are entrusted with validating and confirming transactions.

As we move forward, the current PoA mechanism will be replaced by proof-of-stake to enable multiple parties to participate in the block mining process. Our goal for blockchain governance is to encourage more parties and developers to become involved and increase stakeholder engagement. One of the incentives for achieving this goal is the Proof-of-Stake mechanism.

PoX and PoDP are both part of the Data Verification Consensus category, which are utilized to verify and challenge data transfer contracts. These mechanisms are essential for enabling us to determine, in a deterministic and mathematically sound manner, whether a node has effectively transferred data within the network. Without these mechanisms, this process would be unfeasible.

4. Incentive Mechanisms

4.1 Storage Provider Model

FileFileGo introduces a storage provider model. Nodes within the network have the opportunity to offer storage services, making their resources available to store and retrieve data for other peers. When peers request data, they are required to pay a fee to the storage provider. This incentivizes more nodes to become storage providers, expanding the network's storage capacity and fostering a robust ecosystem.

The storage provider model offers benefits such as increased data availability, reduced reliance on centralized storage solutions, and improved network scalability. By allowing nodes to monetize their storage capabilities, FileFileGo encourages active participation from storage providers, creating a self-sustaining network where participants are incentivized to contribute their resources.

The fees paid by peers requesting data from storage providers serve as an economic incentive for nodes to maintain and offer reliable storage services. The fees are typically determined by market dynamics and can be dynamically adjusted based on factors such as storage capacity, demand, and network conditions.

This storage provider model promotes a decentralized and efficient data storage infrastructure, ensuring that data remains accessible and secure within the FileFileGo network.

4.2 Block Rewards

Validators who actively participate in the consensus protocol and contribute to the security and stability of the network will receive block rewards denominated in FFG. Block rewards will be distributed to validators based on their contribution to the consensus process, encouraging active participation and maintaining a resilient network.

4.3 Transaction Fees

A portion of the transaction fees paid in FFG will be distributed to the validators as an additional incentive for their role in securing the network. Transaction fees will be dynamically adjusted based on network usage, ensuring a competitive fee market and efficient resource allocation.

4.4 Validator Network

FileFileGo offers the opportunity for participants to become validators by making significant contributions to the project. Validators play a crucial role in the consensus protocol by validating transactions and securing the network. By contributing to the project or staking a substantial amount of FFG coins, participants demonstrate their commitment to the network's success and are granted the privilege to join the validator network.

In order to ensure the integrity and security of the network, FileFileGo places a significant responsibility on block validators. To prevent the possibility of malicious validators joining the network, FileFileGo has such requirements.

By imposing a these requirement, FileFileGo creates a system where validators are incentivized to act in the best interests of the network. Validators are not only rewarded with block rewards and transaction fees but are also entrusted with the important task of safeguarding the network against malicious activities.

This approach reinforces the network's security, promotes trust among participants, and encourages responsible behavior from validators. It ensures that those who join the validator network are dedicated to the network's success and willing to fulfill their responsibilities in maintaining a robust and reliable FileFileGo ecosystem.