- Winklevoss-backed exchange is building a wrapped Filecoin (wFIL) on the Ethereum network.
- Users can withdraw and convert Filecoin (FIL) to wFIL on a 1:1 ratio.
Gemini cryptocurrency exchange is working on the launch of an Ethereum-based Filecoin (FIL) token – wrapped Filecoin (wFIL). The exchange is currently looking for developers interested in adding wFIL to their platform to enhance the decentralized file storage token usage on Ethereum.
On launch, users will be able to convert their FIL tokens stored on the Gemini exchange to wFIL in a 1:1 ratio and vice versa. Once converted, users can send and withdraw the wrapped tokens to any ERC 20 compatible address.
For transparency, all FIL tokens held in the Gemini exchange will be transferred to safe institutional-grade storage. This allows users to directly match the amount of wFIL in circulation to FIL backing the wrapped tokens.
FIL is the native token of Filecoin network, a decentralized file storage system that raised over $200 million in its public offering in 2017. The network launched its mainnet in mid-October, listing on three major exchanges before the event.
However, issues among Filecoin miners – who earn rewards for adding files to the network – on mainnet launch caused a slow hitch on the network taking off. 100% of miners’ rewards were held on the protocol for a vested period at launch, which saw miners operate at a loss.
FIL storage power surges over 40%
Chinese miners held a strike protesting the vesting period, which saw the overall network effective mining power decline. However, the miners seem to be back on their saddles, with the overall FIL storage power surging over 40% since the “strike days.”
Protocol Labs, the lead development team of Filecoin, activated a proposal to release 25% of miners’ rewards immediately without the vesting period on October 22 to increase the supply of FIL. The token is needed by miners as collateral to store the files.
As miners return to work, data shows the FIL storage power has grown over 40% in the past three weeks to 862.17 PiB, as of writing from 660 PiB on October 19.