Hello Storage Node Operators!
Important: This includes an announcement of changes to payout rates for storage nodes on all satellites, effective December 1st, and that Storj does not anticipate further payout rate adjustments for the foreseeable future.
Thank you so much for your continued engagement on the forums and elsewhere. Your perspective and insights have been invaluable, as we have gone through this time of change.
Since the changes made July 1st, (announced on June 27th) we have monitored the conversations in the forum and the health of the network and want to give an update on results we’ve observed thus far.
What we did
We announced on June 27th that there would be additional changes to payout rates for storage nodes.
Additionally, over the last few months we have sunsetted the Europe-North-1, and US2 satellites and paid out held amounts to storage node operators (SNOs) who operated nodes on those satellites.
What we observed
To monitor whether the changes to the incentive model would impact the health of the network, we have been monitoring the following dimensions:
|Overall node count dimensions||Measure on June 26th||Measure on Oct. 11||% change|
|Count of active nodes on AP1, EU1, & US1||22,491||22,078||-1.8%|
|Median Daily Repair Bandwidth (TB)||May 28 - June 26||Sept 10 - Oct 9||% Change|
|Nodes initiating graceful exit (GE) or going offline by satellite||Measure on June 26||Measure on Oct 9||Median +/- 1 Stdev April 17 - June 26|
|Count of nodes that called for GE in the prior 30 days EU1||133||72||89.2 +/- 15.4|
|Count of nodes that called for GE in the prior 30 days US1||107||73||87.9 +/- 13.5|
|Count of nodes that called for GE in the prior 30 days AP1||135||73||96.3 +/- 20.5|
|Count of nodes that went offline in the prior 30 days EU1||548||312||601 +/- 116|
|Count of nodes that went offline in the prior 30 days US1||613||290||634 +/- 128|
|Count of nodes that went offline in the prior 30 days AP1||537||313||609 +/- 128|
This data shows a few important things:
- Overall the health of the network has clearly improved since the last change to the incentive structure.
- The net number of nodes has decreased only slightly over the time period.
- We measured significant decreases in the amount of repair traffic on the network, showing that the stability is improving.
- There was no significant increase in nodes calling for Graceful Exit.
- The number of nodes that are going offline has actually decreased.
Based on the above statistics, the network has remained healthy and we are comfortable with moving forward with additional changes that are required for long-term economic sustainability.
Please read the following FAQ carefully as it details the changes we are planning to make. As always we would love to hear from you and understand your thoughts and/or concerns on these changes. You can share any thoughts you have regarding this in the forum.
The Storj Team
Q: What will the updated payouts be beginning December 1st?
A: We have decided based on the metrics we have been following and the input from the forum, to make the following changes to node payouts: The global payout rates for all Satellites will be as follows
This is the new payment schedule that will take effect as of December 1st, 2023 for all Satellites:
|Payment Category||Rates as of Dec 1st|
|Storage (per TB Mo)||$1.50|
|Egress (per TB)||$2.00|
|Audit/Repair (per TB)||$2.00|
Q. What impact does this rate change have on total payouts?
A: Since the change in payout rates in July Egress and Audit/Repair traffic have accounted for about 18% of total payout rates. So while it may seem like a dramatic decrease to cut the bandwidth payouts by ⅔ the overall impact of this decrease on total payouts is only a 12% decrease.
Q: Do you anticipate making further changes to the payouts?
A: With this change we do not anticipate a need to make further changes to the node payout rates for the foreseeable future. At these rates we believe that nodes can operate sustainably, and also that Storj can get to a point where we are operating economically as we pull down infrastructure costs, remove test and abuse data, and make adjustments to the Reed-Solomon expansion factor in the future. If it turns out we are wrong about the sustainability of these payout rates then we will of course adjust in order to maintain the health and performance of the network.
Q: What is the best way to proceed if I decide that the new economic model does not work for my situation?
A: If you decide that this new model will not work for you node we encourage you to take advantage of the new graceful exit that we have announced. Essentially you need to just call graceful exit and then wait 30 days before you can safely remove your node and receive your held amount. More detailed instructions can be found here.
UPDATE: We have posted an update here