Concerns and Indefinite Strike Regarding Operator Payments

[Alexey]

We expressed this in all similar thread, if to be honest (doesn’t mean that I like it):

@john

The goal of the Storj project is to create a free market where nodes and satellites engage and find an equilibrium price for the services that the SNOs provide to the network. The current state of disequilibrium not only has the consequence that satellite operators (Storj Labs today but others in the future) are overpaying for capacity, but it also means that the network is over supplied vs the demand that we currently have.

@john

Fundamentally, as we have said a number of times, SNO payments right now are being subsidized by us to grow the network, and we are currently in a position where the network is larger than it needs to be for the demand we have, and it is continuing to grow faster than we need. We have been transparent that the time would come when we would need to decrease SNO payment rates, and we feel that that time is now. We realize that dropping payment rates will slow the growth of and maybe even shrink the network, and that is precisely what we have decided we need to do.

@Bryanm

• 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.

So the truth is - even with reduced prices, the supply is more than a demand… I do not like it, but it’s - truth.