The Filecoin network provides decentralized data storage and makes sure data is verified, always available, and immutable. Storage providers in the Filecoin network are in charge of storing, providing content and issuing new blocks.

To become a storage provider in the Filecoin network you need a range of technical, financial and business skills. We will explain all the key concepts you need to understand in order to design a suitable architecture, make the right hardware investments, and run a profitable storage provider business.

Follow these steps to begin your storage provider journey:

1. Understand Filecoin economics

2. Plan your business

3. Make sure you have the right skills

4. Build the right infrastructure

Understand Filecoin economics

To understand how you can run a profitable business as a Filecoin storage provider, it is important to make sure you understand the economics of Filecoin. Once you understand all core concepts, you can build out a strategy for your desired ROI.

Storage providers can also add additional value to clients when they offer certain certifications. These can enable a storage provider to charge customers additional fees for storing data in compliance with those standards, for example, HIPAA, SOC2, PCI, GDPR and others.

Filecoin economics ->

Plan your business

The hardware and other requirements for running a Filecoin storage provider business are significantly higher than regular blockchain mining operations. The mechanisms are designed this way because, in contrast to some other blockchain solutions, where you can simply configure one or more nodes to “mine” tokens, the Filecoin network’s primary goal is to provide decentralized storage for humanity’s most valuable data.

You need to understand the various earning mechanisms in the Filecoin network.

Filecoin deals ->

Daily fees and startup readiness (FIP-0100)

With the activation of FIP-0100 in network version 25, all new sectors — and any sectors that are extended or updated — incur a daily fee.

This fee replaces the previous batch fee model and introduces a predictable cost structure tied to each sector’s quality-adjusted power and the network’s circulating supply.

The fee begins accruing the day after a sector is committed or extended. It is deducted automatically at the end of each proving deadline.

The network first draws from vesting block rewards. If those are insufficient, it draws from the miner’s available balance. If both are empty, the unpaid amount becomes fee debt.

Fee debt does not directly cause faults. However, it can impact operations:

• A miner with fee debt may be blocked from submitting certain messages (e.g., pre-commits or recoveries).

• If the balance is too low to pay for WindowPoSt messages, sectors may fault.

• Critically, a miner with outstanding fee debt cannot win block rewards until the debt is repaid.

To avoid this, storage providers should:

• Keep a FIL buffer in the miner actor’s balance.

• Avoid fully withdrawing unlocked funds unless upcoming rewards will cover future fees.

Startup considerations

Miners become eligible to win block rewards once they reach 10 TiB of raw byte power (RBP).

However, rewards are not guaranteed as soon as that threshold is met. Block production is probabilistic, and smaller miners may wait longer to win a block — especially when competing against larger ones.

This creates a funding gap during the startup phase.

New storage providers must plan for this by funding their miner actor with enough FIL to:

• Cover daily fees during onboarding,

• Support message submission (like WindowPoSt),

• And continue sealing until rewards start arriving.

While the amount of FIL required is relatively small compared to overall infrastructure costs, it is operationally critical. Without it, the miner may become stuck — unable to seal new sectors, submit required messages, or produce blocks and win block rewards due to fee debt or insufficient balance.

To estimate how much FIL may be needed, review the FIP-0100 discussion thread or use the real-time fee calculator to model your expected onboarding rate.

Make sure you have the right skills

As will become clear, running a storage operation is a serious business, with client data and pledged funds at stake. You will be required to run a highly-available service, and there are automatic financial penalties if you cannot demonstrate data availability to the network. There are many things that can go wrong in a data center, on your network, on your OS, or at an application level.

You will need skilled people to operate your storage provider business. Depending on the size and complexity of your setup this can be 1 person with skills across many different domains, or multiple dedicated people or teams.

People and skills ->

Build the right infrastructure

At the lowest level, you will need datacenter infrastructure. You need people capable of architecting, racking, wiring and operating infrastructure components. Alternatively, you can get it collocated, or even entirely as a service from a datacenter provider.

Take availability and suitable redundancy into consideration when choosing your datacenter or collocation provider. Any unavailability of your servers, network or storage can result in automatic financial penalties on the Filecoin network.

Software architecture ->

Infrastructure ->

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Explore the storage provider documentation

Get ready to dive into the valuable resources of the storage provider documentation. This comprehensive guide offers a wealth of information about the role of storage providers in the Filecoin ecosystem, including insights into the economic aspects. You’ll also gain knowledge about the software architecture, hardware infrastructure, and the necessary skills for success.

Gain insights into ROI and collateral’s role

To run a successful storage provider business, it’s crucial to understand the concept of Return on Investment (ROI) and the significance of collateral. By planning ahead and considering various factors, such as CAPEX, OPEX, network variables, and collateral requirements, you can make informed decisions that impact your business’s profitability and desired capacity.

Get to know the ecosystem

One of the truly enriching elements of the Filecoin ecosystem lies in its vibrant community. Meet the community on the Filecoin Slack. Within this dynamic network, you’ll find a treasure trove of individuals who are eager to share their experiences and offer invaluable solutions to the challenges they’ve encountered along the way. Whether it’s navigating the intricacies of storage provider operations or overcoming hurdles on the blockchain, this supportive community stands ready to lend a helping hand. Embrace the spirit of collaboration and tap into this remarkable network.

Unleash the Power of Filecoin’s Reference Implementation

Get ready to dive into the heart of the Filecoin network with Lotus, the leading reference implementation. As the most widely used software stack for interacting with the blockchain and operating a storage provider setup, Lotus holds the key to unlocking a world of possibilities. Seamlessly navigate the intricacies of this powerful tool and leverage its capabilities to propel your journey forward.

Hands-on learning and exploration

It’s time to roll up your sleeves and embark on a hands-on adventure. With a multitude of options at your disposal, setting up a local devnet environment is the easiest and most exciting way to kickstart your Filecoin journey. Immerse yourself in the captivating world of sealing sectors and witness firsthand how this critical process works. Feel the thrill of experimentation as you delve deeper into the inner workings of this remarkable technology.

Transforming into a storage provider

Congratulations on taking the next leap in becoming a full-fledged storage provider! Now is the time to determine your starting capacity and architect a tailored solution to accommodate it. Equip yourself with the necessary hardware to kickstart your journey on the mainnet. Test your setup on the calibration testnet to fine-tune your skills and ensure seamless operations. Once you’re ready, brace yourself for the excitement of joining the mainnet.

Supercharge your mainnet experience

As you step into the vibrant realm of the mainnet, it’s time to supercharge your storage provider capabilities with Boost. Discover the immense potential of this powerful software designed to help you secure storage deals and offer efficient data retrieval services to data owners. Unleash the full force of Boost and witness the transformative impact it has on your Filecoin journey.

Discover the world of verified deals and tools

Within the Filecoin network there are many programs and tools designed to enhance your storage provider setup. Uncover the power of these tools as you dive into the documentation, gaining valuable insights and expanding your knowledge. Make the best use of data programs on your path to success.

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