Sia (SF)

System: Sia — Storage and Indexing

Sia is a decentralised storage network where renters buy time-bound encrypted storage and bandwidth from independent hosts through file contracts denominated in Siacoin (SC). Sia was conceived in 2013 and launched mainnet in 2015; it uses a proof-of-work blockchain, storage proofs, renter-host software and protocol-level accounting for both SC and Siafunds (SF). The system boundary includes the Sia chain, file-contract logic, SC and SF state, core software, renters, hosts, miners, full nodes, SC holders, SF holders, and material Sia Foundation components for code stewardship, subsidy receipt and grants.

Token Functionalities

Value Distribution

  • Direct Entitlement (Algorithmic or Guaranteed)

    Right to claim a pro rata share of Sia file-contract tax revenue. SF represents a protocol-defined entitlement to Siafund tax revenue generated by storage contracts, with distributions calculated through Sia’s own accounting rather than discretionary Foundation action. This is Algorithmic or Guaranteed because the entitlement is embedded in the protocol and cannot be unilaterally withheld by an off-chain operator.

System Attributes

Operating Model

<p>Independent&nbsp;hosts,&nbsp;renters&nbsp;and&nbsp;miners&nbsp;coordinate&nbsp;through&nbsp;proof-of-work&nbsp;consensus,&nbsp;file&nbsp;contracts,&nbsp;storage&nbsp;proofs&nbsp;and&nbsp;on-chain&nbsp;settlement&nbsp;rather&nbsp;than&nbsp;through&nbsp;a&nbsp;central&nbsp;operating&nbsp;company.&nbsp;The&nbsp;core&nbsp;storage&nbsp;service&nbsp;is&nbsp;delivered&nbsp;by&nbsp;open&nbsp;participant&nbsp;roles:&nbsp;renters&nbsp;form&nbsp;contracts,&nbsp;hosts&nbsp;provide&nbsp;storage&nbsp;and&nbsp;post&nbsp;collateral,&nbsp;and&nbsp;miners&nbsp;maintain&nbsp;the&nbsp;chain&nbsp;that&nbsp;settles&nbsp;contract&nbsp;outcomes.&nbsp;The&nbsp;Sia&nbsp;Foundation&nbsp;is&nbsp;material&nbsp;for&nbsp;software&nbsp;stewardship,&nbsp;subsidy&nbsp;receipt&nbsp;and&nbsp;grants,&nbsp;but&nbsp;it&nbsp;is&nbsp;not&nbsp;an&nbsp;operational&nbsp;gatekeeper&nbsp;for&nbsp;host-renter&nbsp;contracting.</p>

Value Creation

<p>The&nbsp;storage&nbsp;resource&nbsp;is&nbsp;created&nbsp;off-chain&nbsp;by&nbsp;independent&nbsp;hosts&nbsp;that&nbsp;store&nbsp;encrypted&nbsp;renter&nbsp;data&nbsp;and&nbsp;provide&nbsp;bandwidth&nbsp;over&nbsp;time.&nbsp;The&nbsp;cryptoeconomic&nbsp;coordination&nbsp;that&nbsp;makes&nbsp;this&nbsp;storage&nbsp;market&nbsp;credible&nbsp;is&nbsp;created&nbsp;on-chain&nbsp;through&nbsp;file&nbsp;contracts,&nbsp;locked&nbsp;SC,&nbsp;storage-proof&nbsp;resolution&nbsp;and&nbsp;missed-proof&nbsp;penalties.&nbsp;Renters&nbsp;depend&nbsp;on&nbsp;host&nbsp;infrastructure&nbsp;for&nbsp;the&nbsp;actual&nbsp;storage&nbsp;service,&nbsp;but&nbsp;the&nbsp;blockchain&nbsp;determines&nbsp;whether&nbsp;contractual&nbsp;outcomes&nbsp;are&nbsp;valid&nbsp;and&nbsp;how&nbsp;value&nbsp;is&nbsp;released&nbsp;or&nbsp;forfeited.&nbsp;The&nbsp;valuable&nbsp;product&nbsp;is&nbsp;therefore&nbsp;neither&nbsp;purely&nbsp;on-chain&nbsp;nor&nbsp;purely&nbsp;off-chain:&nbsp;it&nbsp;combines&nbsp;off-chain&nbsp;storage&nbsp;production&nbsp;with&nbsp;on-chain&nbsp;enforcement,&nbsp;settlement&nbsp;and&nbsp;incentive&nbsp;design.</p>

Value Capture

<p>On-chain,&nbsp;SC&nbsp;is&nbsp;routed&nbsp;through&nbsp;file&nbsp;contracts&nbsp;between&nbsp;renters&nbsp;and&nbsp;hosts,&nbsp;paid&nbsp;to&nbsp;miners&nbsp;through&nbsp;block&nbsp;rewards&nbsp;and&nbsp;transaction&nbsp;economics,&nbsp;distributed&nbsp;to&nbsp;SF&nbsp;holders&nbsp;through&nbsp;the&nbsp;Siafund&nbsp;tax&nbsp;mechanism,&nbsp;and&nbsp;destroyed&nbsp;in&nbsp;missed-proof&nbsp;scenarios&nbsp;where&nbsp;contract&nbsp;value&nbsp;is&nbsp;not&nbsp;validly&nbsp;claimed.&nbsp;SF&nbsp;holders&nbsp;receive&nbsp;a&nbsp;protocol-defined&nbsp;share&nbsp;of&nbsp;file-contract&nbsp;tax&nbsp;revenue,&nbsp;making&nbsp;SF&nbsp;the&nbsp;system’s&nbsp;direct&nbsp;value-distribution&nbsp;token.&nbsp;Off-chain,&nbsp;the&nbsp;Sia&nbsp;Foundation&nbsp;receives&nbsp;protocol&nbsp;subsidy&nbsp;outputs&nbsp;controlled&nbsp;through&nbsp;Foundation-governed&nbsp;addresses&nbsp;and&nbsp;can&nbsp;route&nbsp;those&nbsp;resources&nbsp;to&nbsp;development,&nbsp;public&nbsp;goods,&nbsp;and&nbsp;grants&nbsp;activity.&nbsp;Value&nbsp;therefore&nbsp;flows&nbsp;both&nbsp;within&nbsp;the&nbsp;protocol&nbsp;economy&nbsp;and&nbsp;through&nbsp;Foundation-controlled&nbsp;operational&nbsp;channels.</p>

Governance

Participant-Based: <p>Participant-Based&nbsp;Governance&nbsp;applies&nbsp;to&nbsp;protocol&nbsp;execution,&nbsp;network&nbsp;adoption&nbsp;and&nbsp;operational&nbsp;market&nbsp;participation.&nbsp;Protocol&nbsp;upgrades,&nbsp;consensus&nbsp;rules&nbsp;and&nbsp;global&nbsp;economic&nbsp;parameters&nbsp;require&nbsp;active&nbsp;network&nbsp;participants&nbsp;to&nbsp;adopt&nbsp;compatible&nbsp;software,&nbsp;including&nbsp;miners,&nbsp;full&nbsp;nodes,&nbsp;wallets,&nbsp;exchanges,&nbsp;hosts,&nbsp;renters&nbsp;and&nbsp;integrations.&nbsp;Block&nbsp;production&nbsp;and&nbsp;transaction&nbsp;inclusion&nbsp;are&nbsp;governed&nbsp;by&nbsp;miners&nbsp;operating&nbsp;under&nbsp;proof-of-work&nbsp;rules.&nbsp;Host&nbsp;participation,&nbsp;host-level&nbsp;market&nbsp;terms&nbsp;and&nbsp;renter-side&nbsp;host&nbsp;weighting&nbsp;are&nbsp;also&nbsp;participant-based:&nbsp;hosts&nbsp;set&nbsp;terms&nbsp;and&nbsp;provide&nbsp;storage,&nbsp;while&nbsp;renter&nbsp;software&nbsp;independently&nbsp;scores&nbsp;and&nbsp;selects&nbsp;hosts.&nbsp;These&nbsp;powers&nbsp;arise&nbsp;from&nbsp;operational&nbsp;roles,&nbsp;not&nbsp;token-holder&nbsp;voting&nbsp;rights.</p> Entity-Based: <p>Entity-Based&nbsp;Governance&nbsp;applies&nbsp;to&nbsp;components&nbsp;controlled&nbsp;by&nbsp;the&nbsp;Sia&nbsp;Foundation&nbsp;or&nbsp;Foundation-linked&nbsp;decision&nbsp;processes.&nbsp;This&nbsp;includes&nbsp;official&nbsp;code&nbsp;and&nbsp;release&nbsp;stewardship,&nbsp;Foundation&nbsp;subsidy-output&nbsp;control,&nbsp;subsidy-address&nbsp;updates&nbsp;and&nbsp;grants&nbsp;administration.&nbsp;The&nbsp;Foundation’s&nbsp;maintainers&nbsp;can&nbsp;steer&nbsp;official&nbsp;repositories&nbsp;and&nbsp;client&nbsp;releases,&nbsp;while&nbsp;Foundation-controlled&nbsp;multisig&nbsp;arrangements&nbsp;govern&nbsp;subsidy&nbsp;outputs&nbsp;and&nbsp;related&nbsp;address-management&nbsp;processes.&nbsp;The&nbsp;grants&nbsp;programme&nbsp;is&nbsp;also&nbsp;administered&nbsp;through&nbsp;the&nbsp;Foundation&nbsp;and&nbsp;its&nbsp;grants&nbsp;committee.</p>