The Right Way to Understand SFIL's ROI

The Right Way to Understand SFIL's ROI

Summary

Please be noted that it strictly follows the official rules and there are no bubbles. It is simply because you joined Filecoin mining earlier than others, and the mining efficiency in the past was way higher. More specifically, your hash power has been mining for 180 days, so your linear releasing part should be higher in turn. Therefore, the total revenue you get is higher than others, and the payback period is naturally shorter than cloud hash power and mining machines.

Recently, we've noticed that there're some misunderstandings among our community members concerning SFIL's high ROI. Therefore, it seems necessary to make an explanation.

 

SFIL strictly follows the official mining mechanism and revenue distributing rules. However, why the payback period of SFIL is much shorter than that of the mining machines and cloud hash rate?

 

As is known to all, SFIL mining officially started on February 1, 2021. According to the official rules, 25% of the mining revenue will be distributed immediately, and the rest will be distributed within 180 days.

 

If you bought 1T cloud hash rate, then you can figure out how much FIL you can get in the following way.

 

Let's say the mining efficiency is 0.0374FIL/T/24h and the custody fee is 20% of your daily revenue.

 

Actual Amount of FIL Received:

 

The 1st day: 0.0374*0.8*0.25 +(0.0374*0.8*0.75)/180*(1-1)= 0.00748 FIL

 

The 2nd day: 0.0374*0.8*0.25 +(0.0374*0.8*0.75)/180*(2-1)= 0.007604 FIL

 

The 3rd day: 0.0374*0.8*0.25 +(0.0374*0.8*0.75)/180*(3-1)= 0.00773 FIL

 

......

 

The amount of FIL you can get per day is next to nothing from the perspective of cash flow. To make an accumulation, you have to wait for a long time (180 days).

 

Given that 1T hash power was used for mining on February 1, and it follows Filecoin's official mining revenue distribution rules.

 

As of today, the linear releasing part has been distributed for more than 180 days. However, how to calculate the actual mining revenue of 1T hash power on August 11?

 

Let's say the mining efficiency on February 1 is also 0.0374FIL/T/24h. 

 

We can calculate according to the above formula:

 

On the 181st day, the actual amount of FIL received includes 180 parts: 25% of the mining revenue distributed immediately, 1/180 of the linear releasing part on the first day superimposed, and 1/180 of the linear releasing part on the second day superimposed, till 1/180 of the linear release part of the mining revenue on the 180th day is added, the specific calculation formula is as follows:

 

0.0374*0.8*0.25+(0.0374*0.8*0.75)/180*(181-1)=0.0374 FIL.

 

Let's see where the difference lies:

 

If you started mining on February 1, then you can get 0.0374 FIL per T.

 

If you obtained 1T hash power today with cloud hash rate or mining machines, then the income you can get today is 0.00748 FIL per T.

 

Please be noted that it strictly follows the official rules and there are no bubbles. It is simply because you joined Filecoin mining earlier than others, and the mining efficiency in the past was way higher. More specifically, your hash power has been mining for 180 days, so your linear releasing part should be higher in turn. Therefore, the total revenue you get is higher than others, and the payback period is naturally shorter than cloud hash power and mining machines.

 

That is the magic power of joining SFIL mining earlier and superimposed linear mining revenue.

 

As we all know, SFIL mining officially started on February 1, 2021. It gradually distributes revenue despite the total number of hash rate holders. So how many FIL can we get if we invest in 100 SFIL?

 

According to the abovementioned formula, the mining revenue of SFIL per T should be: 

0.0374*0.8*0.25 +(0.0374*0.8*0.75)/180*(181-1)=0.0374 FIL

 

It means that if you buy 100 SFIL, then you can get at least 0.0374 FIL immediately. 

 

Why do we say the mining efficiency should be no lower than 0.03435 FIL/T/24h?

 

SFIL mining officially started on February 1, 2021. And the mining efficiency was around 0.13FIL/T/24h. As for the abovementioned formula, we adopted today's mining efficiency: 0.0374FIL/T/24h.( Filecoin's mining efficiency will reduce day by day) 

 

Miners who hold SFIL will get way more FIL than the average number (0.0374 FIL/T/24h).

 

Want to know the exact figure? Let's take a look at the statistics of SFIL's official wallet. 

 

So how many FIL can we get if we invest in 100 SFIL (1T Hash Rate)? The answer here is 0.0504 FIL and you can get it immediately.

 

Now, we can learn that the mining efficiency of the whole network is 0.0374FIL/T/24h. However, the mining revenue of SFIL per T is 0.0504 FIL, which is much higher than the former one.

 

As for the reasons, it is simply because the linear releasing part of mining revenue will be superimposed since February 1, 2021. Even though you hold SFIL today and the mining efficiency of the whole network is 0.0374FIL/T/24h, you can still enjoy a relatively high mining efficiency. This is also a unique advantage of SFIL.

 

Any bubbles here? Are there any changes to the official FIL mining mechanism?

 

No!

 

As for the underlying mechanism, we've mentioned above.

 

According to the growth rate of FIL hash power, the mining efficiency of FIL will become increasingly lower. Therefore, the earlier you join mining, the higher mining efficiency you'll get. This is the so-called time advantage in the Filecoin mining field.

 

Just as the famous saying goes, time is money.

 

The design of SFIL's revenue superimposing index mechanism strictly follows Filecoin's official rules. Therefore, you'll never be able to find any bubbles here. The two biggest advantages are that you can receive FIL from the first day of SFIL mining and enjoy its ultra-high mining efficiency.

 

If you choose to buy mining machines or cloud hash power, then the mining revenue will be distributed from the day when encapsulation was completed, and the mining efficiency will be valid ever since.

 

That's why the payback period of SFIL is so short and its mining APY is so high.