Filecoin [FIL] Network Upgrade: A Look at FIP0056 Proposal

Summary

• Filecoin [FIL] is about to make another major network upgrade if the proposal FIP0056 gets a ‚yes‘ from the community.
• The proposal aims to better incentivize the long-term storage of network data by introducing a 2x independent sector duration multiplier that would be multiplicative of the 10x quality multiplier incentive.
• Network health remains good, as FIL’s price increases due to the current bullish market condition.

Filecoin [FIL]’s Proposal FIP0056

Filecoin [FIL] is about to make another major network upgrade if its latest proposed protocol changes get a ‚yes‘ from the community. The protocol, called FIP0056, is a proposal aiming to address some of the broader challenges facing the Filecoin network. This includes increasing the minimum and maximum sector durations from six months to one year and 1.5 years to 5 years respectively, as well as introducing a sector duration multiplier that would be multiplicative of an already existing 10x quality multiplier incentive.

The Community’s Response

The Filecoin community has been testing a hybrid soft consensus approach in order to foster consensus as FIP0056 enters its final call phase. A similar effort was made earlier in 2021 but it did not translate into reality as it was rejected by the community at that time. If accepted this time around, it is expected to be implemented in Filecoin’s v19 network upgrade whereas if rejected, FIP won’t be eligible for inclusion in any future upgrades.

Network Performance Remains Good

While developers worked on this proposal, FIL’s network health also remained in check according to Token Terminal’s data which showed that Filecoin’s fees and revenue gained upward momentum since February reflecting increased usage of their token on their networks. This growth was also seen in FIL’s price which increased due to bullish market condition currently prevailing at press time with CoinMarketCap showing it up by over 4.8% in last 24 hours trading at $5.96 with market capitalization of over $9 billion USD at press time too..

Conclusion

Overall, FIP0056 looks promising for Filecoin [FIL]’s future prospects as this new protocol aims to resolve some of its biggest challenges while performance seems fine and prices remain bullish despite bearish sentiment dominating other projects recently due mainly because of recent news regarding Ethereum’s Constantinople hard fork failure last week leading investors flee away from cryptos towards safer haven assets like precious metals etc..