 The motivation for today's talk is to demystify Falkland's circulating supply. The reason we care about this is because circulating supply is a great lens by which to understand the protocol and the token dynamics that contribute to the growth of the economy. This also means that, you know, understanding circulating supply is key to understanding governance decisions to help inform better decisions when kind of, as ZX mentioned, we analyze various improvement proposals, etc. Part of what we consider is how would this impact the underlying dynamics of growing this economy or circulating supply. Quick disclaimer, any and all models discussed are based on simple simplified assumptions. You should do your own research. The Falkland spec, which I've linked in the footnotes, contains greater information regarding how we kind of construct these models. And on a more positive note, big thanks to the Starboard team. We have some of those members here today. Many of the kind of graphs and models originate from these phenomenal folks. Feel free to talk to them as well about, you know, some of their research and how they contribute to the CryptoEconLab network. Okay, great. So the first part that kind of is the underlying force behind circulating supply is how was Filecoin originally allocated. So a maximum of two billion Filecoin will ever be created. But a big caveat here is that it is highly unlikely to reach this point even in the next 20 years. As ZX mentioned, there are all these regulators of circulating supply like performance-based minting. He showed you some of those charts. Some tokens are held in reserve. They're kind of token dynamics like burning and locking, which all act to provide various regulatory kind of functions to circulating supply. The biggest takeaway is that unmind, unvested, locked and burnt funds are not part of circulating supply. And in fact, these kind of tokens characterize most of the tokens today on the network. Circling supply is only about 300 million. So this two billion number is kind of just like this asymptotic bound that we probably won't reach. The pie chart on the right just kind of shows this original allocation. Percentage was allocated for fundraising. Percentage was allocated to the foundation and PL. The majority is for mining and mining reserves. So actually the activity on the network like storage, committing storage capacity, retrieval deals, et cetera, which kind of are the foundational aspects of the network. Great. So the broad kind of overview is circulating supply is a product of token inflow and outflow. The two main sources of inflow come from Genesis vesting and storage mining. The two sources of outflow are locking of tokens as well as network transaction fees or burning. This is a chart that kind of displays those dynamics. You have mining and vesting kind of providing this upward pressure and circulating supply, which is kind of balanced by the downwards pressures from locking and burning. We'll go through each of these sources and kind of what determines how these kind of interact with one another and also do some simulations, but keep this in mind. And kind of in the back of your mind when you have these sources of inflow and outflow understand how they kind of provide these various kind of counterbalancing pressures. So the first and easiest part of token inflow is Genesis vesting. This was determined at network launch. And part of it was from fundraising for sapped investors, which vests over periods of six months to three years linearly. The other part, the vest from the foundation, which is about 400 million, foundation in PL, that's about 400 million of Filecoin linearly invested over six years. The point being that this part of inflow to circulating supply probably ends right before 2027. So six years after a main at launch. And then the remainder of circulating supply dynamics come from things like mining activities, burning and locking, et cetera. So this is the this is the most deterministic part of circulating supply. The parts following this will be actual will kind of be more of a active product of network state and what kind of plays out over the next couple of years. Great. So ZX explained, there we go. So X explained a little bit about this kind of idea of simple baseline minting. But to tie this back to circulating supply, the idea is storage mining is aligned with useful storage. So the maximum amount of fill minted to storage miners will only be available if the network hits incredibly ambitious storage targets. So the chart on the left shows a maximum fill minted in years from test net launch. The network would need to double in storage capacity each year in order to hit this target. And so the reality is that the minting that we should expect to see in the network is somewhere in between the simple minting kind of like you know line on the on the bottom and the max minting at the top. So this is another implicit kind of regulatory mechanism circulating supply. The idea is we don't want to just inject all this fill into the economy unless it's been proven that there is added value being added by storage miners, et cetera, in forms of storage services. The chart on the right is kind of that idea that in the beginning of the network, a lot of network subsidies will come in the form of storage mining like blocker words. As the network matures, then storage deals will continue will will be the most kind of prevalent force of minor revenue and the blocker words will diminish. So that kind of injection of circulating supply from blocker words will go down. Great. So ZX showed you one one view. Another easy view to see this in practice is total minefile since the total of minefile since network launch. You see that it's it's it reaches this inflection point around April 2021. This is when we hit the baseline minting target and we've kind of had stable upwards you know mining since then. Cool. Now we can talk a little bit about token outflow. So lock funds are temporarily removed from circulating supply. These tokens are not tradable and are locked as collateral since storage miners put up collateral as a pledge or promise that they will further consensus security and continuously provide reliable storage. If storage honestly and provide prove reliable storage that they receive these locked funds back but collateral locking is an essential crypto economic incentive to align storage provider activity with the goals of the Filecoin network to provide reliable decentralized storage services. In the process this also provides a downwards pressure on circulating supply because as more funds are locked they're removed as a way to kind of ensure security and stability on the network. Next part is burn or network fees. Network fees are burned and removed from circulating supply entirely. The idea is that as long as there is any action or utility on the network Filecoin tokens will be consumed to compensate for the computation in storage resources on chain messages consumed. So this is something this rate of token consumption is also in the hands of the community. This compete for on chain resources and the demand for this such as block space for enabling transactions is returned to the network via burning. So this is another regulatory downwards pressure on circulating supply that helps facilitate a healthy balanced economy. So you can see how locking and burning both act together as these regulatory mechanisms. The chart on the left shows locking and burning as percentages of circulating supply. On the right you see the daily changes and fluctuations which are reacting to things like locking, locking, vesting, mining, etc. So we want to put it all together. I showed you this chart in the beginning but now we can see each individual component and how they interact with one another to get to this final you know circulating supply number. Currently vesting is a huge portion of inflow. We discussed that this would kind of stop the over the course of the next four years as the linear vesting schedules cease. Mining is also a large part due to the fact that we are at our maximum baseline minting targets. Burning are providing that downwards pressure. Just a quick caveat. If you're looking at coin market cap to look at circulating supply there might be a small difference because coin market cap doesn't include file coin in the wallets of founders and that are dispersed to fill and pl. The point being though is that the underlying dynamics for CMC's definition and the protocol definition are the same. They're subject to mining and locking and burning which are all the fundamental core principles that determine the long term that determine the most important forms of token dynamics that underlie circulating supply. So just some simulations. The disclaimer still holds true. These are samples. These are just meant to give you an idea of how all these factors play in with one another. If we have network projections of growth we can see all those active play out. This orange chart here is vesting. You see that stop at 2027. So we have this increase in circulating supply from minting activities investing and then that kind of tapers off and decreases as the network should hopefully have been mature and most of revenue for miners et cetera will come from storage deals et cetera. If we change this slightly and change the growth targets that changes this trajectory you know if the network grows more rapidly then this kind of process is accelerated. More fill is locked at a higher rate and there's you know you see but you see the same general activity play out. There's another circumstance. One second. Great. One more circumstance is if what if there's a lot of demand for block space? What if burning increases? Then you see kind of burning will apply this downwards pressure on circulating supply continuously but the idea is thematically very much the same. We have this steady increase in circulating supply from vesting mining activities et cetera but those both taper off and then the network will reach this equilibrium where it fills value is tied to the utility that it provides on the network. So thank you guys. This right here if you're just curious and want to see like the presentation I have links to all these observables that are created by the starboard team. You can play with these simulations yourself. Again these assumptions were kind of samples do your own research make your own assumptions but they hopefully this gives you a better idea of how these dynamics underline circulating supply kind of interact with one another.