# (WIP) Introducing AutoCap: Automatic DataCap Allocator Based on Real Activity

At CryptoEconLab, we're building **AutoCap**, a system that makes it easier for Storage Providers to access Filecoin Plus (FIL+) DataCap. AutoCap allocates DataCap fairly and transparently based on real, verifiable on-chain activity.

## What is AutoCap?

AutoCap is a round-based DataCap allocation system that rewards Storage Providers proportionally to their actual contribution to the Filecoin network, measured by FIL burned through the Filecoin Pay protocol.

Instead of manual application processes, AutoCap automates DataCap distribution using transparent, on-chain data. The more FIL you burn during a round (relative to others), the more DataCap you receive from that round's allocation.

**Note (Luca):** *Maybe start this section saying what is the current flow with DC and say that Autocap inverst this: you prove onchain activity, Autocap rewards you DC*

## How Does It Work?

AutoCap operates in rounds. Each round has:
- A start and end time
- A registration fee (in FIL)
- A total DataCap pool to distribute

Here's how it works:

### 1. Registration

When a round opens, Storage Providers can register through the AutoCap Dashboard by:
- Connecting their Filecoin wallet (the address that will be tracked for FIL burns)
- Paying the registration fee from that wallet
- Providing their DataCap Actor ID (the f0xxx address where DataCap will be sent)

**Important:** These are two different addresses:
- Your **wallet address** (connected wallet like MetaMask) = tracked for FIL burning during the round
- Your **DataCap Actor ID** (f0xxx number) = receives the DataCap allocation at the end

Each wallet address can only register once per round.

### 2. Burn FIL Through Filecoin Pay
During the round, registered participants burn FIL using the [Filecoin Pay protocol](https://pay.filecoin.cloud). The system tracks all burns from your registered wallet address in real-time through on-chain verification.

**Note (Luca):** *Improve this part. Talk about settlement etc.*

### 3. Proportional DataCap Allocation
When the round closes, DataCap is allocated based on a simple formula:

Your DataCap = (Your FIL Burned / Total FIL Burned) × Round's Total DataCap

**Example:**
- Round has 10 TiB of DataCap to distribute
- Total FIL burned by all participants: 100 FIL
- You burned: 10 FIL (10% of total)
- You receive: 1 TiB (10% of total DataCap)

This means:
- **Fair distribution**: Everyone gets a share proportional to their contribution
- **Transparent calculation**: All burns are tracked on-chain and visible on the dashboard
- **No favoritism**: The math is automatic and verifiable

### 4. Monitoring Your Progress

AutoCap provides a real-time dashboard where you can:
- See all active and past rounds
- View registered participants
- Track FIL burns during the round
- See expected DataCap allocations (updates live)
- Verify your registration status

The dashboard links to [pay.filecoin.cloud](https://pay.filecoin.cloud) where you can verify all payment and burn activity.

## Who is AutoCap For?

AutoCap is designed for **Storage Providers** who:
- Want transparent, automated access to DataCap based on measurable on-chain activity;
- Want to participate in a fair, competitive system;
- Wish to provide services via Filecoin Pay.

AutoCap is **optional**. If you already receive DataCap through other channels, you can continue doing so. AutoCap is simply another path available to you.

**Note (Luca):** *Maybe explain more the idea that if they privide services trhough fileocin pay, then they also access this source of DC for storage deals.*

## Why FIL Burns?

Burning FIL is a way to measure real economic activity on the Filecoin network. When FIL is burned:
- It permanently removes tokens from circulation
- It increases the value of remaining FIL
- It demonstrates genuine network participation

By tying DataCap allocation to burns, AutoCap ensures that participants who contribute more to the network's economic health receive proportionally more DataCap.

**Note (Luca):** *What happens to the registration fees? This should be clarified.*

## Usage in Practice

### For Storage Providers Who Want to Participate

**Before the Round Starts:**
1. Get a Filecoin-compatible wallet (MetaMask, WalletConnect-compatible wallets, Coinbase Wallet, etc.)
2. Add Filecoin Calibration testnet to your wallet
3. Get testnet FIL for the registration fee
4. Prepare your DataCap Actor ID (your f0xxx address where you want DataCap allocated)

**When the Round Opens - Registration Process:**
1. Navigate to the AutoCap Dashboard
2. Select the active (OPEN) round from the round selector
3. Click the **"Register Now"** button in the Participants table
4. Connect your Filecoin wallet when prompted
5. In the registration modal:
- Review the registration fee displayed
- Enter your DataCap Actor ID (just the number, without the "f0" prefix)
- Click **"Register"**
6. The system will simulate the transaction to ensure it will succeed
7. Approve the transaction in your wallet
8. Wait for blockchain confirmation (you'll see a success message)
9. Your registration is complete! The dashboard will now track FIL burns from your connected wallet address

**During the Round:**
1. Burn FIL through Filecoin Pay using the wallet address you registered with
- *[Instructions for the Filecoin Pay burning process need to be documented and avoid advertise self dealing]*
2. Monitor the dashboard to see your burns being tracked in real-time
3. Watch your expected DataCap allocation update automatically as you (and others) burn more FIL

**After the Round Closes:**
1. View your final DataCap allocation on the dashboard
2. DataCap will be distributed to your specified Actor ID
- *[The exact timing and mechanism for DataCap distribution needs to be defined]*

### Monitoring and Transparency

You can view the AutoCap dashboard at any time to:
- See upcoming, active, and past rounds
- Check which addresses are registered
- Verify burn amounts for all participants
- Calculate expected allocations
- Link to Filecoin Pay explorer for detailed burn verification

**Questions or feedback?**
We're actively working on making AutoCap as accessible as possible for Storage Providers. If you have questions about how to participate, or feedback on how we can improve the system, please reach out to CryptoEconLab.