 So here's my agenda for today. We'll start off from just talking about what is CryptoEconLab and its network, what are we set up to do. I hope after this talk people have a good idea of what our vision are, what are different areas that we're working on. And then we talk about the key economic policy on Filecoin so that we all have a baseline understanding of how Filecoin works before the rest of the talk today. And then lastly, I will give an update on the state of the Filecoin network. And also we talk about the other future CryptoEcon days. Cool, before we start, just a bit of a history lesson. Fun fact, much of Filecoin's CryptoEcon was actually simulated in Austin before we launched. So super glad to be back here again in Austin. Cool, let's dive in. So at CryptoEconLab we kind of think about all the crypto projects and blockchain as the economic network. So we kind of define this process of design, validation, deployment, and governance. So I need to figure out, oh, how should I design this? How do I know my design is good? And once we design it, how do we deploy it? And after we deploy it, our job is not done. We continue to analyze, do analytics, and try to understand how we govern such a living system. And we aspire to be the industry leader, industry defining leader in this whole process. And our vision is really to build an end to NR&D lab that starts from research, protocol, and then to product and ecosystem. And people talk about CryptoEcon a lot. This diagram here really illustrates the interdisciplinary nature of the space. And it also takes part in our team culture. So if all these things speak to you, reach out to us. We can talk more during the break or after our presentations. And so this is another illustration of this whole process. So we have upstream research, more general incentive, all the way to with upcoming protocol, new incentive, and then the protocol governance, and then analytics and ecosystem. We do believe that the success of the ecosystem is so vital to the success of the economy. So another illustration here, more like a bird's eye wheel. We work with different upstream organization. And then we also actively participate in the ecosystem. And then given this kind of scope, end to NR&D, we are hiring across the board for different roles, research, product, engineering, anything. And if there's anything that doesn't fit your role, just reach out to us. And then I'm sure we can define something. I think there's enough idea space, capital, and things for everyone to work on in our ecosystem. And cool. So now I want to talk a bit more about the two main mandate or two main areas of focus of our lab. One is more on the research analytics and governance side, which would make up, I think, the first half of today's talk. Each of the speaker would go more in depth. And then the second part would be more on the business and application that can get built on the Valkuan ecosystem. So on the research and data-driven governance side, a lot of that really is that no one can really predict the future. But we can apply some kind of scientific method to try and understand the system dynamics and try to understand the incentive forces that are pushing the system. So then we can have some kind of reasonable understanding of what the trajectory might be. And so we kind of define this process of analytics and monitoring so that we know what's going on, we get frequent feedback. And then if there's new question, we can do modeling and we do similar project forward. And then to kind of really affect all those changes, we rely on the FIP process, which similar to EIP process on Ethereum, which stands for Filecoin Improvement Protocol. And this is really iterative. And there are many dimensions to the data on Filecoin, given it's a complex economy. We also talk about what is Filecoin in the moment. So just some example of the stuff that we work on on the analytics side. We look at protocol level. So what about the gas? What about the blocks? And are we like, is everything looking healthy more so from a blockchain protocol layer? Then we also look at the macro economy. How is the Filecoin economy doing today? There's also analytics in that aspect. And what about the different active behaviors? What's the risk tolerance level? And what is like all this implied kind of perception of the system? Is everybody super bullish about the Filecoin network? And then we also look into the value of flows from your token transfer to who did you make deals with, and so on and so forth, and data flows as well. And then we also work on FIP, which we mentioned earlier. So this covers three different aspects. It could be ideation, where like, oh, we want to make some changes to the protocol. What are some new FIP or new changes that we can introduce? And then from there, we can propose that change, and then we go through the governance process. Or it could be like somebody came up to us because anybody can propose a FIP in most of the Web3 ecosystem. But sometimes, like a similarly innocent software optimization or change will carry lots of economic impact. So we get caught in pretty often as a group to try to understand, oh, what is the economic impact of this particular change? And then we also work on the new protocol design incentive. That's one of the most exciting aspects of working at PL, CryptoEcon, because there are always new fundamental cryptography, the ship of the systems, consensus research, and then it all requires some kind of CryptoEcon analysis. So we talk about scaling Filecoin. This is a very common problem across Web3. What if your block space increases by 1,000x? How would that change your economic incentive on the economy? We have a talk about that later today. And what about, so Filecoin Storage Network, what about Retrieval? What about computer data? What about adding more programmability? Would that create any issues? Or can we design any new incentive to really stimulate the economy? And then lastly, we really believe in transparent and honest communication. A lot of our work would be public on GitHub, on Notion. You guys can check them out as well. And then on top of that, I think Filecoin is a later on protocol. We talk more about that. But we really believe in success of the ecosystem as an extension of the economics. So in our group, we also spend lots of time thinking about, well, some of the new opportunities, a new part of market fit on the Filecoin ecosystem and even beyond. But we have our own approach in how we think about this problem. I think it's very common in most of startup world about the vision, the storytelling. This is what we want to achieve in the next X, Y, Z years. Everybody agree. That's a grand vision. But we all know startup is hard. Ideas is worthless. It's very about execution. So our approach really is we do know where the frontier of the protocol is. We do know where we are right now. That's where the part of market fit is. That's where all the participants are participating for. And then from there, we see there's a gap. So can we find all these new areas, new opportunities, just at the fringes of the protocol? And then how can we find adoption in part of market fit? How can we validate our ideas as quickly as we can and as cheaply as we can as well, such that we can move along the frontier and go to the grand vision? So there are many different areas here that we are exploring within our group and network. We don't constrain ourselves to just CryptoEconLab. We think of it as a CryptoEconLab and its network. So if you're watching this talk, if you're here or remotely, if you're interested in collaborating with us, feel free to reach out. But these are some of the possible ideas, possible areas that we are exploring. And then in the second half of today's session, you see more of our collaborators presenting their different research and project as well. So some of these include like differentiate storage services, which is talking about Ethereum migrating their storage states. That could be a business on the table already. There's novel data marketplaces, retrieval markets and different layer twos on Filecoin, self-service and user-generated analytics. As we saw earlier, there's a ton of data on Filecoin and we see more example down the line as well. Financing and lending, NFTs and other token structures, data dials, somebody just raised lots of money as well in the newsletter today on the data dot concept. But I think in the Filecoin ecosystem, if you go close to the protocol, there are many part of PMF and adoption opportunity that you can really build lots of traction before you even attract any venture investment. And I want to call one more thing. FVM is EVM compatible user defined smart contract coming on the Filecoin, right? A lot of our ecosystem are betting on like FVM like actually enabling lots of this new application to be built. But our take really is like FVM shouldn't be the bottleneck, that's just a technology, right? Like you can always find a way around it and then like build something that works and then you build the traction and build the adoption. Once you have that when FVM comes online, you will just be an easy migration. And then also branding, marketing and also like how do we really build that adoption really matters a lot. Cool, so with that in mind, this is kind of like the vision for our lab, our culture and then like what we have been working on, the tool main track, research and also application and businesses on top of the Filecoin network. So now we're going to talk about some of the key economic policy and we're going to talk about governance. What are we governing? What are we talking about? So I hope with this policy that give us a baseline understanding of how Filecoin works and then what are the policies that we are considering. So but before that, let's just talk very briefly about Filecoin. If you guys been to my previous talk, I talk about this a lot, but I'm going to do it again because I realize everyone came from a slightly different background. So people always thought about Filecoin as just a storage network, but I think in front of our last point of view it's way more than just storage. If you think of Filecoin as a storage network, you are underselling Filecoin, underestimating the potential, right? First of all, I think it's really a layer one, a protocol that really starts with data and it's designed to store a massive amount of data, but sometimes we have massive supply that the demand may not be there yet and that's one of the biggest challenges that our ecosystem might be facing. And then it's also a multi-sided marketplace enabled by blockchain, it's super exciting. I think it's one of the first few blockchains on the base protocol level that actually have a mission and try to achieve something and do something. It's also an island economy where people come together producing these valuable resources called distributed cloud storage with proof and then they try to export that to the outside world and then our goal is to really to bring more people onto our island and then try our product. And another useful analogy that I always use is you think of it as an Airbnb for cloud services where you have like every miner or every storage providers on Filecoin are essentially an Airbnb host, right? They are mass audits resources and then they let people try their services, right? And it's not just storage too, it's also storage, compute and connectivity. I will argue, I think the Filecoin network is one of the, in terms of like the hardware and all this like power, I think we are one of the strongest network just from the hardware perspective in all of F3. And also it's a very passionate research engineering product community. I think everybody's here super friendly, we really trying to build something new, something different, something like how can we make blockchain really mainstream and useful and really deliver this kind of internet scale experience in F3. So these are three illustrations. The one on the top is the Filecoin network fee. We implemented an EIP 1559 variant. We talk more about that, but these are all the Filecoin that were paid to the network as network fees. And then a second chart basically, a second diagram basically compare Filecoin with all the other storage network out there, right? So I think Dave mentioned just now we have like 17 exabyte of capacity that is 10% of AWS today. And that is about the same size as Google Cloud in 2018. And Filecoin achieved that in just one a year and a half which is an amazing milestone. And then the other illustration is just like the different parties in this island working together. And here's another way to look at this, right? Like you have the storage providers. These are different participants on the Filecoin network. You have storage providers kind of like amassing all the different resources, producing reliable and useful storage. And this is getting incentivized by the protocol. We would like to incentivize more things in a fully decentralized setting, but the other things are much harder to prove, right? We hear about some of these things that are useful but harder to prove later today, right? And the clients are the storage clients, right? They store data on Filecoin today, but then very soon they can do a lot more. And then sometime if you hear this term client they might be a bit confusing. So because Filecoin is both a blockchain, but also an Airbnb for cloud services, but also like many, many, many other things, right? So in this particular case, we talk about storage clients, right? They work directly with the storage providers to use their storage, but you can also think of people using the blockchain as clients, right? And that if you think about people using the blockchain as clients, in that case, the storage providers are clients of the Filecoin network as well. It's a bit confusing, I hope we're on the same page. And then token holders can stake our coin to facilitate more storage onboarding and capital efficiency. And then the ecosystem partner participating really actively in this space. Cool, then now we can move on to the different policy. So let's talk about block reward. So in 2017, like when Filecoin first announced where we have this exponential decay in the block reward curve, this is pretty common practice in many website projects, but as a crypto econ lab we also observed there are quite a few incentive issue around this, where like the incentive is the strongest when the network is the least mature, right? You give out the most rewards in the very beginning, right? And also the reward is entirely time release, based on how much time has elapsed since the beginning of the network. And in this actual decay, the problem here becomes like the earlier, there's a massive, massive like first mover advantage because just because you're here early, you earn a lot more. And especially when the network is the least mature and the least secure. So then we creatively define this kind of block reward policy, which we call a baseline minting where we define a KPI for the network. So the reward minting, block reward minting on the blockchain protocol depends on how much storage is being committed to the network. It starts with I think 2.5 exabyte and it doubles every year. So right now the baseline is eight exabyte, it will double to 16 exabyte in the coming year. So the blockchain, the block reward minting is only at its maximum speed when this KPI is being met and it's being met over time. So this is being computed over time on every single block on the follow-up network. And this is a software aspect with our team like design the system. So here are some of the empirical numbers. The baseline was crossed in April last year. So we are in like full speed minting right now. So you can see the network block rewards where it's steadily increasing because we're behind the baseline, the network is holding back its minting, deferring that to the future because the network hasn't reached its KPI. But once it's KPI, we follow the exponential decay minting curve. The next policy is a collateral policy. So this is kind of how Filecoin work. So you have the miner coming to the network, the squares there are the blockchain. So they require some token as collateral and then they commit this capacity to the network. It's like a Uber network. It's like, hey, Filecoin, I have some spare capacity here, here's my proof. And then like, if anybody wants to take it, come talk to me, right? It's kind of like Airbnb hosts getting listed on Airbnb platform, Uber, empty Uber, drivers, empty Uber being driven on the road, picking up demand, right? And it's super important because a platform economy that's always at full service, there's not enough slack to pick up any upcoming demand. And then for the miner, they put the token into this capacity or sometimes we call it like a container and then they run some compute over it and then they commit it to the Filecoin protocol and then they start earning rewards. And then later on, they can, let's say when the demand really comes around, they can choose to upgrade that capacity and take client deals and earn even more rewards. Quite a few of us would talk more about how that worked exactly later on. So the collateral does two things. One part is to ensure the reliability of the storage which turned out to be fairly reliable. And then the other one is to secure the consensus. We can see this chart in terms of percentage of Filecoin log as part of the security supply and also the total Filecoin log over time. And then with the collateral, there's also slashing. So slashing happens. It's either you violate the consensus security of the protocol or you basically, I told the protocol, hey, I'm committing some storage but like my storage is not reliable. So the Filecoin blockchain comes around to all the storage provider every single day and say, hey, can you show me your storage? And the provider say, hey, here you go, good, nothing happened. But if they say, oh, no, I may have lost the data and then the blockchain will actually slash some of the collateral. So far it has been pretty reliable and then we can all see these are very clear correlation between like the thoughts on the Filecoin network and the collateral that's being slashed from all the SPs on the network. And then also gas policy. So we implemented a variant of EIP 1559 about a year before Ethereum did and then like we make a few variations and we are consistently doing new research and making new modification to the gas policy. This is like the daily gas burn on Filecoin. I can go a lot more details into why this trial looks the way it is but I think for now we're just gonna leave it as is. So, but to illustrate, right this to illustrate Filecoin is like a layer one protocol as much as anything else. And next, there's also this very key Filecoin innovation which is called FuelPlus. It adds a layer of social trust on top of Filecoin. It also give a lot more power and leverage to storage clients. In short, for a storage provider who store clients, FuelPlus clients data, they get a 10x boost to the power which increases the chance of them earning a block reward. And then the mission and the goal here really is to incentivize more useful storage on the Filecoin network. And this program has seen a tremendous adoption in the last like few months where like we actually onboarding more than one petabyte of useful data every single day. So you have one petabyte of data being used by clients every single day. And by the way, so all the chart that I just showed you it's all public and that's the beauty of this. And I also realized there's so much data on Filecoin and so many APIs and there's so many things to explore. And then there's also created a dashboard that if you just want to like a bird's eye view of what's going on in the network, those dashboards are there as well. So next I'm gonna give a brief update of where we are as a network. And then so that people have the right context of what are the major challenges in our ecosystem and what are the different opportunities because whenever you have a challenge it's always an opportunity. So this is a chart that's I think it's the leading indicator of the Filecoin network's health. This is chart on the new storage being onboarded onto the network. The equivalent of this in Bitcoin is like your hash rate, right? But this is like the delta of the hash rate in a sense is how much compute, how much resources being newly added to the Filecoin network every single day. So when we first launched the network it was about 20 paper bytes a day, right? So because maybe it's new, who knows how it's Filecoin network secured and many questions about the Filecoin network. So our store provider a bit more cautious and prudent in onboarding the storage but as time goes on, oh, this network is great. We're gonna add more. So people add a lot more storage and this is also being bottlenecked by the chain scalability, right? Because as I mentioned earlier if you are a store provider you think of a Filecoin blockchain, right? You are a client to the blockchain too because you're using the blockchain to prove that you have data and you have storage. And then the Filecoin engineering team introduced a chain, introduced a protocol improvement that increased the scalability of Filecoin protocol by 10 to 25 acts, right? So then it unlocks even more onboarding. But then around September some of the global macro climate has changed. Then the onboarding rate has decreased since then but in more recent months going up again, right? Because people feel like, oh, after this negative news going on in a global macro environment people feel more confident again, right? They onboard a lot more storage. And even with the recent market downturn we don't see a significant decrease in the onboarding rate. All the store provider are still very bullish about the Filecoin network. They're still adding massive amounts of data and storage to the Filecoin network every single day. And this is like the same chart, the chart that we showed earlier about the daily network fees that is being paid to network for using it, right? So we saw that with the government crackdown and then like there's a dip around like earlier and last year the first quarter of this year but it's steadily picking up again. So onboarding is one part it's like the inflow of storage capacity to the Filecoin network but it's at the same time there's also awful. I feel like I hesitated because I feel like I'm getting a bit more into the details here but apologize if it's a bit confusing. So when people onboard storage they're promising a network and say, hey, I'm storing some data for some duration, right? There's a fixed duration over here and this data might be expiring over time. So this is a chart that says, oh, sure you have data being onboarded but at the same time some data might be expiring. So this is looking forward, looking forward. So all the orange bars are the potential expiration on the Filecoin network. So these are data that might leave the network down the line but then all the blue bars are how much of this data are being renewed how much of this sort of being renewed to stick around on a Filecoin network and it makes a lot of sense because you see more renewal as this is where we are right now the bright yellow are in the past and orange are going forward. So you see more renewal closer to the expiration date and then that renewal rate declines over time because it's further out in the future we are not sure we can make up and I can make up my mind later as a storage provider whether I want to extend. But what this means on a token flow level is like when people when they expire their sector there's always release of initial pledge with collateral. So this will be another, this will be so given the schedule expiration you will see this increase in liquidity in the Filecoin network and just mark the date around February that's the first wave of sector expiration. So then we also make this chart about the actual supply and demand of the Filecoin token. Like you actually see the yellow bar here is when it's above the x-axis that means that it's being removed from the circling. Sorry, this chart is on the lock Filecoin when it's above the x-axis it means that you're locking more Filecoin when it's below the x-axis it means that you are releasing more Filecoin. So you see that for onboarding for initial pledge it's always above the x-axis it's only when expiration happened it's not go below the x-axis. But in recent month we did see lots of positive growth where the increase in where the initial pledge is making up a bigger proportion of the lock Filecoin. Again, I think it's too much in the weeds. But this is being attributed to strong adoption of Filecoin plus where given this chart where you have like more than one pair by a Filecoin being used every day and the clients lock more collateral as well it actually bring back the circling supply. But to summarize what I'm trying to say from the state of network really is even given the macro downturn all this headwind coming our way we still see very strong health in terms of storage onboarding we see lots of adoption with Filecoin plus and then looking at the token supply and demand this is even though times are hard but I think like it's still moving in the upward direction. Well lastly to close it off we're gonna talk about the I think like I mentioned many things like in passing there are many other speakers today we go through in greater details about gas, about circling supply about different kinds of application and businesses that you can build on Filecoin and so on and so forth and also for we are hosting two more CryptoEcon day after today today is our second time hosting CryptoEcon day in Austin we're so excited to be here we're hosting two more one in ECC in Paris in July if you guys are gonna be there let us know we'd like to have you back and we're also hosting another one in few Singapore in August.