Filestar, a web 3.0 decentralized storage, verifiable computation, and infrastructure network, has received $5 million funding from Hong Kong-based investment company HashKey Capital. The investment amount will be used mainly to fund the daily operations of the project’s managing foundation. The funding came in the form of a grant and not the usual token purchasing funds, as seen in decentralized space.
Filestar Secures $5 Million Funding
HashKey Capital is an early-stage blockchain investor and has been a supporter of the decentralized movement since 2013. The firm has a core investment focus on blockchain technology, digital assets, and crypto-financial infrastructures.
Filestar’s project foundation is a not-for-profit that aims to look after the network before a decentralized autonomous organization is set up.
Ryan Chen, the director of strategy at Hashkey, told:
“We see potential in the project to transform the storage mining landscape and establish a blockchain-based decentralized marketplace for computing-power and bandwidth sharing.”
The project aims to improve upon decentralized network and its distributed storage mechanism Filecoin by removing the initial pledge collateral requirement. For instance, the pledge requires the miners of Filecoin to commit their resources for better participation in the economy. This in turn relieves the small miners of Filecoin to handle the pressures on the network.
Filestar Preparing to Launch Staking Program
Filestar is also preparing to launch a staking program where 70% of its native STAR token will be generated from mining. The rest of the 30% will be used for incentivizing other stakeholders in the ecosystem.
The token-based model will further implement a voting system for miners based on their track records. The program will also enable holders of STAR tokens for community participation in the decentralized storage network, enhancing a decentralized governance system model.
The mainnet launch of Filestar took place on October 30, 2020. The network has now 44 pebibytes (PiB) of storage power on its network.