Mirrored from filpgf.io — ProPGF Batch 3 (Karma program 1479, application 6a318bd113ef2aeed7ce0d93, status: pending). Contact details redacted; canonical application lives on filpgf.io. 1.1 Project Name FIL Value Accrual Engine 1.3 Project Website https://diegoatorres.github.io/filecoin-value-engine-site/ 1.4 Team Lead/Point of Contact Diego Torres Borda, Protofire Product Manager. Preferred channel: Slack [redacted] / Telegram Diegotowers. 1.5 Category [ "RFP 4 - FIL value accrual: burn and lock mechanisms" ] 1.6 Open Source Status Fully Open Source 2.1 Project Summary Filecoin is finally getting paid for storage, but that revenue settles in stablecoins and bypasses FIL, only the hard-coded 0.5% network-fee burn reaches the token, while every other FIL lock/burn is supply-side and funded by declining emissions. The FIL Value Accrual Engine is a neutral, open, counterparty-plural app-layer rail on Filecoin Pay: services and processors opt in to route a configurable slice of their paid-storage revenue into a buy-and-burn-from-real-revenue engine (with a Sky-style stablecoin buffer), plus an open stake-yield that gives any FIL holder a real claim on that flow, with a FIP to lift a slice to protocol level. It supports the whole network's cryptoeconomics (storage providers, payment processors, FIL holders, and governance) by turning the 2026 paid-usage KPI into actual FIL value accrual. The gap is structural: as paid usage scales, FIL value capture currently does not. The grant funds the credible, neutral, audited reference implementation + economic model + FIP draft that the network needs but that no single commercial actor is incentivized to build as a fee-less public good. 2.2 Who does this work support? [ "Storage Providers", "Onramps", "Application Builders", "Network Infrastructure", "Network Governance" ] 2.3 Total Funding Requested (USD) $185,000 2.4 Milestones & Budget [ { "title": "Capture → convert → buffer-first burn (testnet)", "description": "Opt-in capture (operator-commission repoint + voluntary routing) + convert stable→FIL on Uniswap v3 (TWAP-guarded, slippage-capped) + Sky-style stablecoin buffer + permissionless burn, on a calibration testnet. Deliver the economic model + parameter spec (governance-set ranges for capture rate, split, buffer).", "dueDate": "2026-09-30", "fundingRequested": "$60,000", "completionCriteria": "Completion criteria: a routed test capture flows end-to-end (capture → buffer → swap → burn); parameters + governance ranges specified.\n\nVerifiable evidence: public testnet contract addresses + tx hashes for the end-to-end flow; the economic-model + parameter-spec document; open-source repo." }, { "title": "Stake-yield + dashboard + audit + mainnet burn (capped) + FIP draft", "description": "Open, liquid stake-yield pool (stake-FIL-earn-FIL, fee-share); public dashboard + subgraph; external audit of the capture/convert/burn/stake core; burn engine deployed to mainnet with capped per-call size; FIP draft for the protocol-level slice published.", "dueDate": "2026-11-30", "fundingRequested": "$75,000", "completionCriteria": "Completion criteria: public dashboard shows real capture + burn + staking; audit report delivered; FIP draft public.\n\nVerifiable evidence: mainnet contract addresses; published audit report; live dashboard URL; FIP draft link; burn txs to f099 on Filfox/Beryx/Filscan." }, { "title": "Open mainnet + ≥3 pilot integrations + governance handover", "description": "Open mainnet; ≥3 pilot integrations routing real flow; stake-yield live (real, if small); governance/timelock handover + operator runbook; per-call caps lifted.", "dueDate": "2027-01-31", "fundingRequested": "$50,000", "completionCriteria": "Completion criteria: live captured flow → burn + staker yield visible on the dashboard; ≥3 integrations routing.\n\nVerifiable evidence: on-chain captured-flow / burn / staked metrics (Filfox/Beryx/Filscan + subgraph); the ≥3 integrations' routing txs; governance multisig/timelock addresses." } ] 3.1 Impact pathway Output: an audited, open-source value-accrual rail on mainnet + an open stake-yield pool + a public burn/lock dashboard + the economic model + a FIP draft. Outcome: Filecoin's paid-usage flow shifts from "bypasses FIL" to "accrues to FIL", each routed dollar buys-and-burns FIL (scarcity) and gives FIL holders a standing claim on network flow (stake-yield); the effect compounds as paid usage grows. Impact: the network's own 2026 paid-usage KPI becomes a force that strengthens FIL, reinforcing the cryptoeconomics (Objective 2) the whole demand strategy depends on, non-circularly, because FIL is bought with external stablecoin revenue (the MakerDAO/Sky + Hyperliquid model), not emissions. The FIP path makes a slice protocol-level. 3.2 Verification metrics | Metric |Data source |How it's measured |Target (end of grant) | | FIL burned from external revenue | Filfox / Beryx / Filscan | burns to f099, buffer-gated | live & measured (small near-term; nascent demand) | |FIL staked (open pool)|on-chain / subgraph |pool stake balance |live, a standing claim on flow | |Captured flow routed |subgraph (Captured events) |per-adopter attribution |≥3 integrations routing real flow | |% of captured flow accruing to FIL |dashboard / subgraph |burn + stake-yield ÷ captured |measured, governance-tunable | |Public dashboard |dashboard URL |uptime; all metrics from chain |live from M2 | |FIP status |Filecoin FIP repo|draft published |draft public by M2 | 3.3 References Protofire has been a Filecoin infrastructure partner since 2021. Our most directly relevant reference is the Filecoin Node Infrastructure engagement with Protocol Labs, where we optimized node operations, developed Glif Nodes RPC API services, and deployed advanced monitoring - achieving 99.95%+ uptime, sub-800ms data retrieval, and a 240% increase in developer usage (30,000+ developers/month). Full case study: https://protofire.io/projects/filecoin-node-infrastructure/ Beyond Filecoin, Protofire has delivered 200+ projects for ecosystem-defining clients across DeFi and Web3 infrastructure. Public references include: Chainlink — Developer tools suite (SDKs, subgraphs, testing frameworks) that drove 3× more integrations and improved oracle reliability by 75%. https://protofire.io/projects/chainlink-dev-tools/ Balancer — ve8020 Launchpad that cut integration time by 82% and grew governance-aligned TVL from $120M to $730M across 41 protocols. https://protofire.io/projects/balancer/ Safe (Gnosis Safe) — Cross-chain multisig wallet development, now securing $100B+ in assets. https://protofire.io/projects/gnosis-safe-wallet/ The Graph — Subgraph and node management that slashed query times by 92% and indexing costs by 65%, making Protofire the #2 indexer in the ecosystem. https://protofire.io/projects/the-graph-subgraphs/ Full project portfolio: https://protofire.io/projects/ 4.1 Monthly Operating Burn [ "$10-$100K (small team)" ] 4.2 What % of total team monthly burn depends on this grant? ~15–20%. This grant funds a dedicated workstream (smart contract engineers, tokenomics, front-end/subgraph, audit coordination) on top of Protofire's existing project portfolio. It is not survival funding, it is a focused public-good contribution. 4.3 If this grant is not awarded, what happens? The neutral, fee-less public-good rail is exactly the work a commercial actor won't self-fund, so without the grant it is deprioritized - the audited reference implementation, the economic-model substrate, and the FIP track stall, and Filecoin's paid-usage growth keeps bypassing FIL. 4.4 Core Team Protofire is a Filecoin infrastructure partner since 2021, operating services at ~12M daily requests and 99.58% uptime, with 200+ delivered projects for ecosystem-defining clients (public references: Chainlink, Balancer, Safe, among others). The grant team: two full-stack engineers covering smart contracts / Solidity, backend, frontend, and indexing; a QA engineer and a Product Owner. 4.5 Has your team received a ProPGF grant or funding from PLFIF before? [ "No" ] 5.1 Key risks & dependencies Adoption (make-or-break): capture is opt-in and Filecoin's paid demand is nascent. Mitigation: v1 ships the infrastructure (audited rail + model + FIP) ready to capture flow as the 2026 bet pays off; early routing via pilot/aligned integrations; the FIP track de-risks by eventually making a slice protocol-level. We frame demand honestly, not as a forecast. Technical (conversion / MEV): swap manipulation or sandwiching. Mitigation: TWAP-derived minimum-out (not spot), hard slippage cap, per-call cap, stablecoin buffer; permissionless execute() (no privileged ordering); external + internal audit; immutable contracts with governance-set params only. External dependencies: Filecoin Pay (capture), Uniswap v3 / Oku (conversion), USDFC/USDC. Mitigation: venue-agnostic swap adapter; per-token allowlist; the voluntary-routing path needs zero Filecoin Pay integration. Anything else you want to share that we didn't ask? The strategic case - re-coupling Filecoin's success to its token: Filecoin's 2026 turnaround can succeed commercially and still leave FIL behind. Today the client's dollar settles in stablecoins to providers and, beyond the hard-coded 0.5% burn, never becomes FIL — network revenue and token value are structurally decoupled, and every existing FIL sink is supply-side, keyed to capacity and funded by declining emissions. That is the single point of failure under the whole strategy: paid usage can grow to the moon while the token captures almost none of it. The FIL Value Engine re-couples them — it makes paid usage itself the thing that buys, burns, and locks FIL. Why this form of value capture is the one that works - and revalues the token: a) It passes the only test that matters. FIL is bought with money from outside the token system (the client's external stablecoin revenue), not with emissions - the structural property behind every value-capture winner: MakerDAO/Sky (revenue → buy-and-burn), Hyperliquid (fee-funded buybacks), ETH's EIP-1559 burn. That makes the effect non-circular and durable, not a one-off treasury buyback. b) It compounds. Every routed dollar → FIL bought → split into burn (permanent scarcity) and an open stake-yield (a standing, real claim on network cash flow - paid from external revenue, never inflation). FIL stops being a pure supply-side/emissions story and becomes a productive, yield-bearing claim on Filecoin's growing real revenue. That deepens holding and staking → deepens the lock → compounds as usage grows. The lock layer alone scales to ~12.5× the burn in FIL terms (the model invariant): scarcity plus a cash-flow claim. c) It revitalizes the ecosystem, not just the token. It aligns every actor on the rails - SPs, payment processors, stablecoin issuers, FIL holders, governance - behind the goal the 2026 strategy already set (paid, on-chain usage), and finally makes that goal worth something to the token (Objective 2 / Pillar 2). As a neutral, fee-less public good any participant can plug into, with a community-governed rate and a FIP path to protocol level, value capture compounds across the ecosystem instead of depending on one counterparty. In one line: this is the missing primitive that turns Filecoin's commercial growth into FIL value - the rung at the bottom of the ladder, and it is load-bearing. Objective 1 Indirect Objective 2 Direct Objective 3 N/A