Type of allocator:
What is your overall diligence process? Automated (programmatic), Market-based, or Manual (human-in-the-loop at some phase). Initial allocations to these pathways will be capped.
Manual
Amount of DataCap Requested for allocator for 12 months:
100 PiB. This estimate is based on conversations we have had with Independent Software Vendors like SteelDome, Impossible Cloud and others who are looking to leverage the capabilities of Filecoin storage (immutability, persistence guarantees) to differentiate their storage offerings. We will be providing turnkey Filecoin storage to these types of partners and back up their clients’ data to Filecoin.
Is your allocator providing a unique, new, or diverse pathway to DataCap? How does this allocator differentiate itself from other applicants, new or existing?
Fundamentally, at web3mine we believe that storage deals which are paid for have the highest chance of being credibly aligned with one of the core objectives of Fil+ (i.e., “store data that does not have the purpose of stealing FIL block rewards”). As a result, we have designed our allocator to drive competitively-priced paid storage deals paid for by entities that are verifiably unrelated to web3mine.
The Datacap distributed via the web3mine allocator will be open to all clients who are storing data with storage providers that are supported by web3mine. We have developed a range of tools that make sealing, snapping and proving real client data performant and cost-effective. Our objective is to facilitate the onboarding of data from clients that want to leverage the capabilities of Filecoin (competitive price, immutability, persistence guarantees etc.).
Storage clients benefiting from the datacap allocated by this allocator will typically interact with web3mine’s partners, who are bundling the high-speed storage, sealing and snapping capacity that’s aggregated in the web3mine network into a comprehensive suite of data storage services. These partners then charge for their services. They use the unique features that the Filecoin storage network provides (e.g., immutability, persistence guarantees) to differentiate their services vis-a-vis their competitors who aren’t using Filecoin storage.
These partners will also be primarily responsible for vetting the legitimacy of the client data. Partners are required to pay for the storage they resell to their clients which provides a strong disincentive to store random bits since they couldn’t recuperate their costs with random bits. Additionally, we reserve the right to occasionally audit our partners due diligence for additional security. Our ability to strike partnerships with these entities is entirely a function of our ability to provide a competitively priced storage offering that meets their requirements. Importantly, our partners are completely separate from the web3mine entity.
Clients will prepare and deliver data in the form of .car files. The .car-files are then stored with storage providers connected to the web3mine network, which itself is open to any and all providers of storage or compute hardware (see web3mine.io/provide). web3mine’s technology and expertise is critical in turning these providers’ hardware into marketable storage and compute services that can compete on price and performance with legacy cloud solutions – a key requirement for paid deals.
As a member in the Filecoin Community, I acknowledge that I must adhere to the Community Code of Conduct, as well other End User License Agreements for accessing various tools and services, such as GitHub and Slack.
Additionally, I will adhere to all local & regional laws & regulations that may relate to my role as a business partner, organization, notary, or other operating entity. *
You can read the Filecoin Code of Conduct here: https://github.com/filecoin-project/community/blob/master/CODE_OF_CONDUCT.md
Acknowledgment: Acknowledge
Cient Diligence Section:
This section pertains to client diligence processes.
Who are your target clients?
Enterprise Data Clients,Small-scale developers or data owners
Describe in as much detail as possible how you will perform due diligence on clients.
We primarily use our partners (see above) to conduct due diligence on the storage clients. Of course the end users clients may also apply for Datacap themselves. If there are allocators that are better suited than ours, we will direct the storage clients and our partners there.
The legitimacy of data stored is based primarily on the following elements: 1) We charge our partners for data storage and 2) our partners are verifiably unrelated to web3mine, the entity responsible for this allocator. Additionally, 3) we reserve the right to occasionally audit our partners’ efforts to conduct due diligence on their clients. Finally, 4) web3mine is first and foremost a liquid staking platform: We succeed if we pass the highest possible yield (stemming from block rewards) to stakers. If web3mine held back these block rewards for its own profit its business would fail. That is why it is critical that we capture data that data storage clients are willing to pay for. These revenue streams, not block rewards, are what is going to pay for the cost of operating the datacenters of storage providers allowing us to pass as much of the block rewards as possible to stakers.
Please specify how many questions you'll ask, and provide a brief overview of the questions.
As outlined above, our partners bundle the high-speed storage, sealing and snapping capacity that’s aggregated in the web3mine network into a comprehensive suite of data storage services that they market to end-users (enterprises or other). We primarily rely on our partners to verify their respective clients’ to ensure the legitimacy of the data. We leverage contractual obligations (we require partners to certify that they are vetting their clients) and economic incentives (paid deals) to ensure alignment with our partners. We also reserve the right to occasionally audit our partners.
Will you use a 3rd-party "Know your client" (KYC) service?
Our partners will conduct due diligence for the storage clients that they engage with. We do not prescribe a specific tool for their KYC or KYB checks. We will keep a record of our partners and the deal volume and (where possible) a list of storage clients they resell our storage capacity to, however. To vet that their clients are real, we may ask them to show us invoices of the deals they make. We may also conduct secret purchases (through us or a third party) to ensure that they are abiding by their obligation to do proper KYC on their clients.
Please note that we may also occasionally secure direct storage deals with extremely large volumes. In these cases, we will conduct KYC checks through vendors like Compliance Labs (CLL) who we have partnered with on other occasions to run similar types of KYC and AML checks. Their process involves a 5-10 minute video call to verify passport information and the nature of their business.
Can any client apply to your pathway, or will you be closed to only your own internal clients? (eg: bizdev or self-referral)
For example, a 'white label' service where you apply directly on behalf of your clients. Yes, any client can apply for datacap. They will benefit from storing on Fil+ since their storage deal will be competitively priced and come alongside features unique to the Filecoin storage network (e.g., immutability, persistence guarantees).
How do you plan to track the rate at which DataCap is being distributed to your clients?
We will be tracking it in a spreadsheet that lists all our partners and the deal volume they drive to us broken down by client.
Data Diligence
This section will cover the types of data that you expect to notarize.
As a reminder: The Filecoin Plus program defines quality data is all content that meets local regulatory requirements AND
• the data owner wants to see on the network, including private/encrypted data
• or is open and retrievable
• or demonstrates proof of concept or utility of the network, such as efforts to improve onboarding
As an operating entity in the Filecoin Community, you are required to follow all local & regional regulations relating to any data, digital and otherwise. This may include PII and data deletion requirements, as well as the storing, transmitting, or accessing of data.
Acknowledgement: Acknowledge
What type(s) of data would be applicable for your pathway?
Public Open Commercial/Enterprise,Private Commercial/Enterprise
How will you verify a client's data ownership? Will you use 3rd-party KYB (know your business) service to verify enterprise clients?
Provide as much detail as possible about how you will confirm the provenance of claimed data, such as the type of KYB service.
The entity seeking to store data will sign SLAs with our partners, who then deliver .car files to us. We reserve the right to audit or test that they are abiding by these SLAs regularly.
How will you ensure the data meets local & regional legal requirements?
The entity seeking to store data will sign SLAs with our partners, who then deliver .car files to us. We reserve the right to audit or test that they are abiding by these SLAs regularly. Compliance with local and regional legal requirements is contingent on the client's profile and their geographic location. Data is usually replicated to multiple providers in several regions unless the data client explicitly does not want this to happen. Our approach varies depending on whether the client is a large enterprise or a smaller entity: - For Enterprises: We typically expect data from enterprises to be replicated across multiple providers in various regions to avoid any data loss events. These enterprises, willing to store data with providers in our network, will enter into Service Level Agreements (SLAs) or similar contracts. We will review these agreements to ensure compliance before approving their applications. - For Smaller Clients: In cases where small clients, particularly those not engaging directly with a storage provider, seek data storage, we will handle each application on a case-by-case basis. Such clients will be allocated DataCap in smaller tranches. This approach allows us to more closely monitor and ensure compliance with the relevant legal standards for each individual application. This differentiated strategy enables us to effectively manage compliance while catering to the diverse needs of our client base.
What types of data preparation will you support or require?
To ensure consistency and compatibility within our network, we will require clients to deliver data in the form of a .car file. Clients are free to use any tool that can generate a valid .car file. However, to facilitate this process, we will provide a suite of tools that clients may opt to use. Additionally, we offer full support for the web3mine tools, ensuring our clients have the necessary resources and assistance for seamless data preparation.
What tools or methodology will you use to sample and verify the data aligns with your pathway?
We will be charging by data volume stored. This creates a disincentive for our partners to make the files larger than they are or store more copies than are strictly necessary. The mechanism that prevents abuse (e.g., sector padding) on our end is the fact that it would reduce the supply of capacity that we are able to monetize. As outlined above, this would be contrary to our core business objective, generating the maximum amount of rewards for our stakers by allowing providers to monetize the utility of storage (as opposed to block rewards).
Data Distribution
This section covers deal-making and data distribution.
As a reminder, the Filecoin Plus program currently defines distributed onboarding as multiple physical locations AND multiple storage provider entities to serve client requirements.
How many replicas will you require to meet programmatic requirements for distribution?
3+
What geographic or regional distribution will you require?
We serve all regions, but are focused on the ones where archival cloud storage is a common and pervasive business model. The storage providers that are tapping into web3mine capabilities are distributed all over the world. We distribute data per the requirements of the storage clients.
How many Storage Provider owner/operators will you require to meet programmatic requirements for distribution?
3+
Do you require equal percentage distribution for your clients to their chosen SPs? Will you require preliminary SP distribution plans from the client before allocating any DataCap?
The datacap is allocated by web3mine on behalf of clients. Our clients have preferences for where their data is stored and may also request it be stored with providers that use renewable energy etc. However, providers are a commodity once connected to the web3mine network. That means we don’t expect that clients will have a specific preference for one provider and we don’t typically enable selecting one specific provider. We user a web3mine tool called ‘miner balancer’ to allocate datacap evenly across providers connected to the web3mine operations. The tool optimizes for allowing all providers of the network to grow in line with their objectives without increasing risk for web3mine stakers, who are providing FIL that is used as pledge collateral. Providers connected to the web3mine operations are typically not incentivized by block rewards. They receive fiat generated by monetizing storage deals instead or converting FIL. As a result they are agnostic to the allocation of Datacap.
What tooling will you use to verify client deal-making distribution?
We are happy to use existing tooling to verify that deals are distributed across various different storage providers.
How will clients meet SP distribution requirements?
We use software to distribute deals to the network of providers connected to web3mine’s storage operations. This software optimizes for the best performance (fastest, cheapest etc.) for the storage clients we serve. It is an in-house solution developed by web3mine ag.
As an allocator, do you support clients that engage in deal-making with SPs utilizing a VPN?
We will track VPN usages and try preventing its misuse. Some of our clients will require using a VPN solution. Those are usually enterprises that require handling its data with additional security measures in place. We know where our storage providers are physically located because we vet them when they become our partners. We initially focus on North America and Europe because we know that geographic proximity to storage clients will allow us to deliver the most competitive storage services.
DataCap Allocation Strategy
In this section, you will explain your client DataCap allocation strategy.
Keep in mind the program principle over Limited Trust Over Time. Parties, such as clients, start with a limited amount of trust and power.
Additional trust and power need to be earned over time through good-faith execution of their responsibilities and transparency of their actions.
Will you use standardized DataCap allocations to clients?
No, client specific
Allocation Tranche Schedule to clients:
We plan to distribute using successive tranches, increasing by a factor of 5, up to a maximum of 10 PiB per client.
First Tranche: This will be the base amount.
Second Tranche: up-to 5 times the first tranche.
Third Tranche: up-to 5 times the second tranche.
Fourth Tranche: up-to 5 times the third tranche.
The sum of these four tranches should not exceed 10 PiB.
In order to match 10PiB max per client, initial tranche cannot exceed 65TiB.
This distribution ensures a gradual and significant increase in data allocation for each tranche, aligning with the strategy of scaling up the allocation in a controlled yet expansive manner.
Will you use programmatic or software based allocations?
Yes, standardized and software based
What tooling will you use to construct messages and send allocations to clients?
We will use existing notary registry tooling (like the ones at https://filplus.fil.org/#/) in combination with in-house software (web3mine message manager) that will send initial proposals to be signed by multisig signers.
Describe the process for granting additional DataCap to previously verified clients.
Past performance informs how quickly we allocate Datacap to our partners. For partners that have consistently and verifiably delivered high quality client data flows, we will be especially fast in approving Datacap allocations. Process will not be fully automated and human signers will be using an internal dashboard to track down previous allocations and its usages.
Tooling & Bookkeeping
This program relies on many software tools in order to function. The Filecoin Foundation and PL have invested in many different elements of this end-to-end process, and will continue to make those tools open-sourced. Our goal is to increase adoption, and we will balance customization with efficiency.
This section will cover the various UX/UI tools for your pathway. You should think high-level (GitHub repo architecture) as well as tactical (specific bots and API endoints).
Describe in as much detail as possible the tools used for:
• client discoverability & applications
• due diligence & investigation
• bookkeeping
• on-chain message construction
• client deal-making behavior
• tracking overall allocator health
• dispute discussion & resolution
• community updates & comms
We work with partners (such as Steeldome, Impossible Cloud etc.) to source data storage clients. They serve as aggregators. We will check with our partners frequently to ensure our services meet the requirements that help them secure clients. We will log these conversations and insights so we can react to them appropriately.
We sign agreements with our partners that contractually oblige them to re-sell our storage services only to legitimate uses. We will safely store these agreements in case the Fil+ governance team is interested in reviewing that they do in fact exist. We also reserve the right to audit the legitimacy of our partners’ clients by asking them to verify that they do in fact have a business relationship with the entities they serve (e.g., show invoice). We will also do a check on whether the volumes they drive are credible by engaging in a dialogue with our partners about their business and strategy.
We will maintain a log of all datacap allocations by partner and provide additional granularity where available (e.g., information about the end-user, their storage preferences and more
We will gladly share all information (e.g., contractual agreements with our partners, evidence of audits, etc.) with those disputing the legitimacy of Datacap allocated via this allocator.
Finally, we have a twitter presence and of course the participants of the web3mine network are clearly identifiable on-chain.
Will you use open-source tooling from the Fil+ team?
Yes, but as the team we also developed most of the tooling used today, and we’re planning to open-source some of them in the future.
Where will you keep your records for bookkeeping? How will you maintain transparency in your allocation decisions?
We prefer that our allocations remain private since it may reveal information about the success of our partners in securing deals which could be useful to their competitors. We will, however, provide information to the Fil+ governance team about exact allocations. Ideally we would have a non-disclosure agreement in place for these types of information exchanges. We will not be able to share information that our partners contractually prevent us from sharing.
Risk Mitigation, Auditing, Compliance
This framework ensures the responsible allocation of DataCap by conducting regular audits, enforcing strict compliance checks, and requiring allocators to maintain transparency and engage with the community. This approach safeguards the ecosystem, deters misuse, and upholds the commitment to a fair and accountable storage marketplace.
In addition to setting their own rules, each notary allocator will be responsible for managing compliance within their own pathway. You will need to audit your own clients, manage interventions (such as removing DataCap from clients and keeping records), and respond to disputes.
Describe your proposed compliance check mechanisms for your own clients.
Our best mechanism to check that datacap is allocated to real clients is the fact that these clients (via our partners) pay for the storage services we provide. Additionally, we will estimate whether the deal volume secured by our partners matches their business strategy and size. We will do this by estimating average data storage needs of the clients in their portfolio and comparing that to the volume they drive. We are also happy to use tools such as CID checker and retrievability bot to ensure the uniqueness of data or that CIDs are retrievable. Note that retrievability needs to allow for sufficient unsealing time to run successfully (typically 24h max).
Describe your process for handling disputes. Highlight response times, transparency, and accountability mechanisms.
When disputes arise, we will share all necessary information that helps us defend against the claims.
Detail how you will announce updates to tooling, pathway guidelines, parameters, and process alterations.
We will communicate any changes to the Fil+ governance team and closely partner with them to ensure that any changes continue to abide by the objectives of the Fil+ program.
How long will you allow the community to provide feedback before implementing changes?
We are open to suggestions and comments from the community on our Github allocator application. We also have a Discord that is open for community members to join. Finally, we are also open for community members to test the legitimacy of our operation by storing data via one of our partners or approaching us directly to store data.
Regarding security, how will you structure and secure the on-chain notary address? If you will utilize a multisig, how will it be structured? Who will have administrative & signatory rights?
We plan to secure our on-chain notary address using a multi-signature (multisig) approach, with a threshold of three signatures required for transactions. The multisig setup will include seven signers in total:
Five Human-Controlled Signers: These signers are managing project members, each utilizing a Ledger hardware wallet for enhanced security.
Two Semi-Hot Wallets: One proposing transaction and one validator. These wallets are safeguarded through Hashicorp's Vault. We will host this on Google Cloud VMs, ensuring robust protection with full disk encryption and runtime memory encryption. Additionally, these VMs will be positioned within a private GKE cluster. Access to this cluster is restricted to by limited personnel via wireguard and MFA authentications.
This structure ensures a balanced approach to security and operational efficiency. While the proposal and initial validation of applications are handled programmatically, human approval is essential and required for the execution of each transaction.
Will you deploy smart contracts for program or policy procedures? If so, how will you track and fund them?
Not for now
Monetization
While the Filecoin Foundation and PL will continue to make investments into developing the program and open-sourcing tools, we are also striving to expand and encourage high levels of service and professionalism through these new Notary Allocator pathways. These pathways require increasingly complex tooling and auditing platforms, and we understand that Notaries (and the teams and organizations responsible) are making investments into building effective systems.
It is reasonable for teams building services in this marketplace to include monetization structures. Our primary guiding principles in this regard are transparency and equity. We require these monetization pathways to be clear, consistent, and auditable.
Outline your monetization models for the services you provide as a notary allocator pathway.
First and foremost, web3mine aims to create liquid staking infrastructure which is currently pointed at the Filecoin network. In general, we succeed if we pass the greatest amount of block rewards captured on the Filecoin network to our stakers. What pays for the provision of the actual Filecoin storage infrastructure is primarily the proceeds from storage deal revenue sourced through our partners or the storage deals they make themselves. For them, being connected to the Filecoin network is just a “kicker” on top of their regular cloud storage business. We are not planning to be charging our partners for running this allocator on their behalf. Instead, we will price our storage services to them accounting for the time and resources we need to run this allocator successfully.
Describe your organization's structure, such as the legal entity and other business & market ventures.
Web3mine is a Liechtenstein AG. Today, we offer three main products: Staking, Hardware monetization and Compute services. Participating in the Filecoin network helps us create and capture value across all three products. Stakers are able to put their FIL to use using web3mine’s staking protocol. Hardware owners can monetize idle hardware by renting or leasing the capacity to web3mine in exchange for fiat and/or other currencies. Our Filecoin expertise as well as technological innovations allow us to aggregate their hardware into a highly performant Filecoin storage operation, which allows them to differentiate their services. The capital from stakers is used to pledge the required collateral. As a result, costs are dramatically reduced for providers while revenue potential from monetizing the utility of their hardware is increased. Lastly, the compute network acts as a platform that matches computational workloads from networks such as Filecoin (e.g., sealing, snapping, proving) with providers at optimal prices and performance. The resulting network of providers can also be used by other networks to take on other types of computational workloads.
Where will accounting for fees be maintained?
Our staking product, including staking volume as well as the current APY will be visible at stake.web3mine.io. By observing the inflation of the Filecoin network, anyone can approximate the share of rewards we pass to stakers. This will also validate the fact that storage operations are primarily funded by storage fees as opposed to block rewards.
If you've received DataCap allocation privileges before, please link to prior notary applications.
n/a
How are you connected to the Filecoin ecosystem? Describe your (or your organization's) Filecoin relationships, investments, or ownership.
An entity affiliated with Protocol Labs, the organization that originally launched the Filecoin protocol, is an investor in web3mine. Several members of the web3mine team have previously worked with Protocol Labs, including brief involvement with the Filecoin Plus Governance team. Additionally, we maintain a dynamic and contributory role within the Filecoin community, engaging in various initiatives and developments, like: Participation in Filecoin Improvement Proposals (FIPs): We actively engage in the evolution of the Filecoin protocol by contributing to FIPs and enhancing existing tools associated with Filecoin. Innovation in Sealing as a Service: We are at the forefront of pioneering 'sealing as a service' and have developed multiple tools that assist users in leveraging Filecoin's capabilities. Tool Development for Data Onboarding: Our team is committed to creating innovative tools and procedures that facilitate the onboarding of data onto the Filecoin network, simplifying the process for new users Assisting Web2 Clients with Filecoin Transition: We provide dedicated support to clients from the traditional web (Web2) space, helping them transition and store their data securely on Filecoin.
How are you estimating your client demand and pathway usage? Do you have existing clients and an onboarding funnel?
Through conversations with our partners as well as members of Protocol Labs who are leading enterprise efforts. We have had several conversations with companies such as Steeldome, Impossible Cloud and others that have outlined their requirements and the associated demand. We have outlined to them that we can meet their requirements at a competitive price and are expecting that these partners will start driving substantial client demand by reselling our services as part of their services to further differentiate from competitors.
Notary Allocator Pathway Name:
web3mine AG
Organization:
web3mine AG
Allocator's On-chain addresss:
f1xmitblrmxo6ubt2jyokg4flfiruqkaag2oe3gca
Country of Operation:
Liechtenstein
Region(s) of operation:
Europe,North America,Oceania
Type of allocator: What is your overall diligence process? Automated (programmatic), Market-based, or Manual (human-in-the-loop at some phase). Initial allocations to these pathways will be capped.
Manual
Amount of DataCap Requested for allocator for 12 months:
Is your allocator providing a unique, new, or diverse pathway to DataCap? How does this allocator differentiate itself from other applicants, new or existing?
Fundamentally, at web3mine we believe that storage deals which are paid for have the highest chance of being credibly aligned with one of the core objectives of Fil+ (i.e., “store data that does not have the purpose of stealing FIL block rewards”). As a result, we have designed our allocator to drive competitively-priced paid storage deals paid for by entities that are verifiably unrelated to web3mine.
The Datacap distributed via the web3mine allocator will be open to all clients who are storing data with storage providers that are supported by web3mine. We have developed a range of tools that make sealing, snapping and proving real client data performant and cost-effective. Our objective is to facilitate the onboarding of data from clients that want to leverage the capabilities of Filecoin (competitive price, immutability, persistence guarantees etc.). Storage clients benefiting from the datacap allocated by this allocator will typically interact with web3mine’s partners, who are bundling the high-speed storage, sealing and snapping capacity that’s aggregated in the web3mine network into a comprehensive suite of data storage services. These partners then charge for their services. They use the unique features that the Filecoin storage network provides (e.g., immutability, persistence guarantees) to differentiate their services vis-a-vis their competitors who aren’t using Filecoin storage.
These partners will also be primarily responsible for vetting the legitimacy of the client data. Partners are required to pay for the storage they resell to their clients which provides a strong disincentive to store random bits since they couldn’t recuperate their costs with random bits. Additionally, we reserve the right to occasionally audit our partners due diligence for additional security. Our ability to strike partnerships with these entities is entirely a function of our ability to provide a competitively priced storage offering that meets their requirements. Importantly, our partners are completely separate from the web3mine entity.
Clients will prepare and deliver data in the form of .car files. The .car-files are then stored with storage providers connected to the web3mine network, which itself is open to any and all providers of storage or compute hardware (see web3mine.io/provide). web3mine’s technology and expertise is critical in turning these providers’ hardware into marketable storage and compute services that can compete on price and performance with legacy cloud solutions – a key requirement for paid deals.
As a member in the Filecoin Community, I acknowledge that I must adhere to the Community Code of Conduct, as well other End User License Agreements for accessing various tools and services, such as GitHub and Slack. Additionally, I will adhere to all local & regional laws & regulations that may relate to my role as a business partner, organization, notary, or other operating entity. * You can read the Filecoin Code of Conduct here: https://github.com/filecoin-project/community/blob/master/CODE_OF_CONDUCT.md
Acknowledgment: Acknowledge
Cient Diligence Section:
This section pertains to client diligence processes.
Who are your target clients?
Enterprise Data Clients,Small-scale developers or data owners
Describe in as much detail as possible how you will perform due diligence on clients.
We primarily use our partners (see above) to conduct due diligence on the storage clients. Of course the end users clients may also apply for Datacap themselves. If there are allocators that are better suited than ours, we will direct the storage clients and our partners there.
The legitimacy of data stored is based primarily on the following elements: 1) We charge our partners for data storage and 2) our partners are verifiably unrelated to web3mine, the entity responsible for this allocator. Additionally, 3) we reserve the right to occasionally audit our partners’ efforts to conduct due diligence on their clients. Finally, 4) web3mine is first and foremost a liquid staking platform: We succeed if we pass the highest possible yield (stemming from block rewards) to stakers. If web3mine held back these block rewards for its own profit its business would fail. That is why it is critical that we capture data that data storage clients are willing to pay for. These revenue streams, not block rewards, are what is going to pay for the cost of operating the datacenters of storage providers allowing us to pass as much of the block rewards as possible to stakers.
Please specify how many questions you'll ask, and provide a brief overview of the questions.
As outlined above, our partners bundle the high-speed storage, sealing and snapping capacity that’s aggregated in the web3mine network into a comprehensive suite of data storage services that they market to end-users (enterprises or other). We primarily rely on our partners to verify their respective clients’ to ensure the legitimacy of the data. We leverage contractual obligations (we require partners to certify that they are vetting their clients) and economic incentives (paid deals) to ensure alignment with our partners. We also reserve the right to occasionally audit our partners.
Will you use a 3rd-party "Know your client" (KYC) service?
Our partners will conduct due diligence for the storage clients that they engage with. We do not prescribe a specific tool for their KYC or KYB checks. We will keep a record of our partners and the deal volume and (where possible) a list of storage clients they resell our storage capacity to, however. To vet that their clients are real, we may ask them to show us invoices of the deals they make. We may also conduct secret purchases (through us or a third party) to ensure that they are abiding by their obligation to do proper KYC on their clients. Please note that we may also occasionally secure direct storage deals with extremely large volumes. In these cases, we will conduct KYC checks through vendors like Compliance Labs (CLL) who we have partnered with on other occasions to run similar types of KYC and AML checks. Their process involves a 5-10 minute video call to verify passport information and the nature of their business.
Can any client apply to your pathway, or will you be closed to only your own internal clients? (eg: bizdev or self-referral)
For example, a 'white label' service where you apply directly on behalf of your clients. Yes, any client can apply for datacap. They will benefit from storing on Fil+ since their storage deal will be competitively priced and come alongside features unique to the Filecoin storage network (e.g., immutability, persistence guarantees).
How do you plan to track the rate at which DataCap is being distributed to your clients?
We will be tracking it in a spreadsheet that lists all our partners and the deal volume they drive to us broken down by client.
Data Diligence
This section will cover the types of data that you expect to notarize.
As a reminder: The Filecoin Plus program defines quality data is all content that meets local regulatory requirements AND • the data owner wants to see on the network, including private/encrypted data • or is open and retrievable • or demonstrates proof of concept or utility of the network, such as efforts to improve onboarding
As an operating entity in the Filecoin Community, you are required to follow all local & regional regulations relating to any data, digital and otherwise. This may include PII and data deletion requirements, as well as the storing, transmitting, or accessing of data.
Acknowledgement: Acknowledge
What type(s) of data would be applicable for your pathway?
Public Open Commercial/Enterprise,Private Commercial/Enterprise
How will you verify a client's data ownership? Will you use 3rd-party KYB (know your business) service to verify enterprise clients?
Provide as much detail as possible about how you will confirm the provenance of claimed data, such as the type of KYB service. The entity seeking to store data will sign SLAs with our partners, who then deliver .car files to us. We reserve the right to audit or test that they are abiding by these SLAs regularly.
How will you ensure the data meets local & regional legal requirements?
The entity seeking to store data will sign SLAs with our partners, who then deliver .car files to us. We reserve the right to audit or test that they are abiding by these SLAs regularly. Compliance with local and regional legal requirements is contingent on the client's profile and their geographic location. Data is usually replicated to multiple providers in several regions unless the data client explicitly does not want this to happen. Our approach varies depending on whether the client is a large enterprise or a smaller entity: - For Enterprises: We typically expect data from enterprises to be replicated across multiple providers in various regions to avoid any data loss events. These enterprises, willing to store data with providers in our network, will enter into Service Level Agreements (SLAs) or similar contracts. We will review these agreements to ensure compliance before approving their applications. - For Smaller Clients: In cases where small clients, particularly those not engaging directly with a storage provider, seek data storage, we will handle each application on a case-by-case basis. Such clients will be allocated DataCap in smaller tranches. This approach allows us to more closely monitor and ensure compliance with the relevant legal standards for each individual application. This differentiated strategy enables us to effectively manage compliance while catering to the diverse needs of our client base.
What types of data preparation will you support or require?
To ensure consistency and compatibility within our network, we will require clients to deliver data in the form of a .car file. Clients are free to use any tool that can generate a valid .car file. However, to facilitate this process, we will provide a suite of tools that clients may opt to use. Additionally, we offer full support for the web3mine tools, ensuring our clients have the necessary resources and assistance for seamless data preparation.
What tools or methodology will you use to sample and verify the data aligns with your pathway?
We will be charging by data volume stored. This creates a disincentive for our partners to make the files larger than they are or store more copies than are strictly necessary. The mechanism that prevents abuse (e.g., sector padding) on our end is the fact that it would reduce the supply of capacity that we are able to monetize. As outlined above, this would be contrary to our core business objective, generating the maximum amount of rewards for our stakers by allowing providers to monetize the utility of storage (as opposed to block rewards).
Data Distribution
This section covers deal-making and data distribution.
As a reminder, the Filecoin Plus program currently defines distributed onboarding as multiple physical locations AND multiple storage provider entities to serve client requirements.
Recommended Minimum: 3 locations, 4 to 5 storage providers, 5 copies
How many replicas will you require to meet programmatic requirements for distribution?
3+
What geographic or regional distribution will you require?
We serve all regions, but are focused on the ones where archival cloud storage is a common and pervasive business model. The storage providers that are tapping into web3mine capabilities are distributed all over the world. We distribute data per the requirements of the storage clients.
How many Storage Provider owner/operators will you require to meet programmatic requirements for distribution?
3+
Do you require equal percentage distribution for your clients to their chosen SPs? Will you require preliminary SP distribution plans from the client before allocating any DataCap?
The datacap is allocated by web3mine on behalf of clients. Our clients have preferences for where their data is stored and may also request it be stored with providers that use renewable energy etc. However, providers are a commodity once connected to the web3mine network. That means we don’t expect that clients will have a specific preference for one provider and we don’t typically enable selecting one specific provider. We user a web3mine tool called ‘miner balancer’ to allocate datacap evenly across providers connected to the web3mine operations. The tool optimizes for allowing all providers of the network to grow in line with their objectives without increasing risk for web3mine stakers, who are providing FIL that is used as pledge collateral. Providers connected to the web3mine operations are typically not incentivized by block rewards. They receive fiat generated by monetizing storage deals instead or converting FIL. As a result they are agnostic to the allocation of Datacap.
What tooling will you use to verify client deal-making distribution?
We are happy to use existing tooling to verify that deals are distributed across various different storage providers.
How will clients meet SP distribution requirements?
We use software to distribute deals to the network of providers connected to web3mine’s storage operations. This software optimizes for the best performance (fastest, cheapest etc.) for the storage clients we serve. It is an in-house solution developed by web3mine ag.
As an allocator, do you support clients that engage in deal-making with SPs utilizing a VPN?
We will track VPN usages and try preventing its misuse. Some of our clients will require using a VPN solution. Those are usually enterprises that require handling its data with additional security measures in place. We know where our storage providers are physically located because we vet them when they become our partners. We initially focus on North America and Europe because we know that geographic proximity to storage clients will allow us to deliver the most competitive storage services.
DataCap Allocation Strategy
In this section, you will explain your client DataCap allocation strategy.
Keep in mind the program principle over Limited Trust Over Time. Parties, such as clients, start with a limited amount of trust and power. Additional trust and power need to be earned over time through good-faith execution of their responsibilities and transparency of their actions.
Will you use standardized DataCap allocations to clients?
No, client specific
Allocation Tranche Schedule to clients:
We plan to distribute using successive tranches, increasing by a factor of 5, up to a maximum of 10 PiB per client.
First Tranche: This will be the base amount. Second Tranche: up-to 5 times the first tranche. Third Tranche: up-to 5 times the second tranche. Fourth Tranche: up-to 5 times the third tranche. The sum of these four tranches should not exceed 10 PiB.
In order to match 10PiB max per client, initial tranche cannot exceed 65TiB.
This distribution ensures a gradual and significant increase in data allocation for each tranche, aligning with the strategy of scaling up the allocation in a controlled yet expansive manner.
Will you use programmatic or software based allocations?
Yes, standardized and software based
What tooling will you use to construct messages and send allocations to clients?
We will use existing notary registry tooling (like the ones at https://filplus.fil.org/#/) in combination with in-house software (web3mine message manager) that will send initial proposals to be signed by multisig signers.
Describe the process for granting additional DataCap to previously verified clients.
Past performance informs how quickly we allocate Datacap to our partners. For partners that have consistently and verifiably delivered high quality client data flows, we will be especially fast in approving Datacap allocations. Process will not be fully automated and human signers will be using an internal dashboard to track down previous allocations and its usages.
Tooling & Bookkeeping
This program relies on many software tools in order to function. The Filecoin Foundation and PL have invested in many different elements of this end-to-end process, and will continue to make those tools open-sourced. Our goal is to increase adoption, and we will balance customization with efficiency.
This section will cover the various UX/UI tools for your pathway. You should think high-level (GitHub repo architecture) as well as tactical (specific bots and API endoints).
Describe in as much detail as possible the tools used for: • client discoverability & applications • due diligence & investigation • bookkeeping • on-chain message construction • client deal-making behavior • tracking overall allocator health • dispute discussion & resolution • community updates & comms
We work with partners (such as Steeldome, Impossible Cloud etc.) to source data storage clients. They serve as aggregators. We will check with our partners frequently to ensure our services meet the requirements that help them secure clients. We will log these conversations and insights so we can react to them appropriately. We sign agreements with our partners that contractually oblige them to re-sell our storage services only to legitimate uses. We will safely store these agreements in case the Fil+ governance team is interested in reviewing that they do in fact exist. We also reserve the right to audit the legitimacy of our partners’ clients by asking them to verify that they do in fact have a business relationship with the entities they serve (e.g., show invoice). We will also do a check on whether the volumes they drive are credible by engaging in a dialogue with our partners about their business and strategy. We will maintain a log of all datacap allocations by partner and provide additional granularity where available (e.g., information about the end-user, their storage preferences and more We will gladly share all information (e.g., contractual agreements with our partners, evidence of audits, etc.) with those disputing the legitimacy of Datacap allocated via this allocator. Finally, we have a twitter presence and of course the participants of the web3mine network are clearly identifiable on-chain.
Will you use open-source tooling from the Fil+ team?
Yes, but as the team we also developed most of the tooling used today, and we’re planning to open-source some of them in the future.
Where will you keep your records for bookkeeping? How will you maintain transparency in your allocation decisions?
We prefer that our allocations remain private since it may reveal information about the success of our partners in securing deals which could be useful to their competitors. We will, however, provide information to the Fil+ governance team about exact allocations. Ideally we would have a non-disclosure agreement in place for these types of information exchanges. We will not be able to share information that our partners contractually prevent us from sharing.
Risk Mitigation, Auditing, Compliance
This framework ensures the responsible allocation of DataCap by conducting regular audits, enforcing strict compliance checks, and requiring allocators to maintain transparency and engage with the community. This approach safeguards the ecosystem, deters misuse, and upholds the commitment to a fair and accountable storage marketplace.
In addition to setting their own rules, each notary allocator will be responsible for managing compliance within their own pathway. You will need to audit your own clients, manage interventions (such as removing DataCap from clients and keeping records), and respond to disputes.
Describe your proposed compliance check mechanisms for your own clients.
Our best mechanism to check that datacap is allocated to real clients is the fact that these clients (via our partners) pay for the storage services we provide. Additionally, we will estimate whether the deal volume secured by our partners matches their business strategy and size. We will do this by estimating average data storage needs of the clients in their portfolio and comparing that to the volume they drive. We are also happy to use tools such as CID checker and retrievability bot to ensure the uniqueness of data or that CIDs are retrievable. Note that retrievability needs to allow for sufficient unsealing time to run successfully (typically 24h max).
Describe your process for handling disputes. Highlight response times, transparency, and accountability mechanisms.
When disputes arise, we will share all necessary information that helps us defend against the claims.
Detail how you will announce updates to tooling, pathway guidelines, parameters, and process alterations.
We will communicate any changes to the Fil+ governance team and closely partner with them to ensure that any changes continue to abide by the objectives of the Fil+ program.
How long will you allow the community to provide feedback before implementing changes?
We are open to suggestions and comments from the community on our Github allocator application. We also have a Discord that is open for community members to join. Finally, we are also open for community members to test the legitimacy of our operation by storing data via one of our partners or approaching us directly to store data.
Regarding security, how will you structure and secure the on-chain notary address? If you will utilize a multisig, how will it be structured? Who will have administrative & signatory rights?
We plan to secure our on-chain notary address using a multi-signature (multisig) approach, with a threshold of three signatures required for transactions. The multisig setup will include seven signers in total:
This structure ensures a balanced approach to security and operational efficiency. While the proposal and initial validation of applications are handled programmatically, human approval is essential and required for the execution of each transaction.
Will you deploy smart contracts for program or policy procedures? If so, how will you track and fund them?
Not for now
Monetization
While the Filecoin Foundation and PL will continue to make investments into developing the program and open-sourcing tools, we are also striving to expand and encourage high levels of service and professionalism through these new Notary Allocator pathways. These pathways require increasingly complex tooling and auditing platforms, and we understand that Notaries (and the teams and organizations responsible) are making investments into building effective systems.
It is reasonable for teams building services in this marketplace to include monetization structures. Our primary guiding principles in this regard are transparency and equity. We require these monetization pathways to be clear, consistent, and auditable.
Outline your monetization models for the services you provide as a notary allocator pathway.
First and foremost, web3mine aims to create liquid staking infrastructure which is currently pointed at the Filecoin network. In general, we succeed if we pass the greatest amount of block rewards captured on the Filecoin network to our stakers. What pays for the provision of the actual Filecoin storage infrastructure is primarily the proceeds from storage deal revenue sourced through our partners or the storage deals they make themselves. For them, being connected to the Filecoin network is just a “kicker” on top of their regular cloud storage business. We are not planning to be charging our partners for running this allocator on their behalf. Instead, we will price our storage services to them accounting for the time and resources we need to run this allocator successfully.
Describe your organization's structure, such as the legal entity and other business & market ventures.
Web3mine is a Liechtenstein AG. Today, we offer three main products: Staking, Hardware monetization and Compute services. Participating in the Filecoin network helps us create and capture value across all three products. Stakers are able to put their FIL to use using web3mine’s staking protocol. Hardware owners can monetize idle hardware by renting or leasing the capacity to web3mine in exchange for fiat and/or other currencies. Our Filecoin expertise as well as technological innovations allow us to aggregate their hardware into a highly performant Filecoin storage operation, which allows them to differentiate their services. The capital from stakers is used to pledge the required collateral. As a result, costs are dramatically reduced for providers while revenue potential from monetizing the utility of their hardware is increased. Lastly, the compute network acts as a platform that matches computational workloads from networks such as Filecoin (e.g., sealing, snapping, proving) with providers at optimal prices and performance. The resulting network of providers can also be used by other networks to take on other types of computational workloads.
Where will accounting for fees be maintained?
Our staking product, including staking volume as well as the current APY will be visible at stake.web3mine.io. By observing the inflation of the Filecoin network, anyone can approximate the share of rewards we pass to stakers. This will also validate the fact that storage operations are primarily funded by storage fees as opposed to block rewards.
If you've received DataCap allocation privileges before, please link to prior notary applications.
n/a
How are you connected to the Filecoin ecosystem? Describe your (or your organization's) Filecoin relationships, investments, or ownership.
An entity affiliated with Protocol Labs, the organization that originally launched the Filecoin protocol, is an investor in web3mine. Several members of the web3mine team have previously worked with Protocol Labs, including brief involvement with the Filecoin Plus Governance team. Additionally, we maintain a dynamic and contributory role within the Filecoin community, engaging in various initiatives and developments, like: Participation in Filecoin Improvement Proposals (FIPs): We actively engage in the evolution of the Filecoin protocol by contributing to FIPs and enhancing existing tools associated with Filecoin. Innovation in Sealing as a Service: We are at the forefront of pioneering 'sealing as a service' and have developed multiple tools that assist users in leveraging Filecoin's capabilities. Tool Development for Data Onboarding: Our team is committed to creating innovative tools and procedures that facilitate the onboarding of data onto the Filecoin network, simplifying the process for new users Assisting Web2 Clients with Filecoin Transition: We provide dedicated support to clients from the traditional web (Web2) space, helping them transition and store their data securely on Filecoin.
How are you estimating your client demand and pathway usage? Do you have existing clients and an onboarding funnel?
Through conversations with our partners as well as members of Protocol Labs who are leading enterprise efforts. We have had several conversations with companies such as Steeldome, Impossible Cloud and others that have outlined their requirements and the associated demand. We have outlined to them that we can meet their requirements at a competitive price and are expecting that these partners will start driving substantial client demand by reselling our services as part of their services to further differentiate from competitors.