As a SNO who has not met the threshold for payment since December I have a couple of questions regarding what is BEST for me in this situation.
Is it better for me to continue to wait until I’ve accumulated enough to actually have the funds paid out eventually
Sign up for this zkSync stuff and pull out the payments
Which of the 2 options is more cost effective for ME as a SNO? According to the information in the dashboard I have $4.01, $4.01, $3.51 and $4.48 (estimated for the current month). Which of the above 2 options will cost me more? It is not at all clear to me which is the best option for payments going forward. Additionally, which STORJ price will be used during the payout? The amount from the dates they should have been generated or the current price?
Also, I’ve recently opened a Coinbase account. I noticed that STORJ is listed as one of the coins they support. Are there any caveats against using Coinbase?
I can’t answer whether it’s better to wait for L1 threshold, or to sign up for zksync, that’s something for you to decide.
The benefit of L1 payments is that they are widely supported and existing DeFi processes work as expected, however there are the current downsides of expensive transactions costs and requiring ETH to pay the gas for a transaction.
zksync or L2 payments have much lower fees as L2 → L2 transactions and payments as it’s off chain, however if you wanted to move L2 → L1 then the transaction fees are the same ‘amount’ in gas but can be paid in StorJ instead of ETH. You also need to remember that the zksync account needs to be activated at a cost of 11,000 gas, again this can be paid in StorJ.
Assuming you have total accumulated SNO earnings of $16.01 then to receive a L1 payout in April the average ETH transaction fee would need to be $4 for you to receive a payout. The average transaction fee hasn’t been that low since January 1st 2021 (Network Chart | Coin Metrics). L2/zksync payouts are currently occurring irrespective of fees, so you would receive the equivalent of £16.01 in StorJ as calculated on the day of the payout.
There is some hesitancy with using an exchange address (Coinbase/Binance/etc) for SNO payouts as the exchange could withdraw support for the token and then the tokens are locked without any way to recover them. Also if you don’t ‘own’ the private key to your exchange wallet then it is possible the exchange could lose the tokens or a thief could steal them.
A quick read in the Coinbase help webpage states:
“All digital currency that Coinbase holds in its online hot storage is insured. If Coinbase were to suffer a breach of its online hot storage, the insurance policy would pay out to cover any customer funds lost as a result.
This insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account.”
What do you want to do with the payments? If you want to spend them, then wait until you’ve earned enough to get a L1 payout, as that’s the network that has the most flexibility to spend from. If you simply want to get a payout that’s under your control (but that you have no immediate plans for), then sign up for zkSync and start receiving L2 payouts.
For less than $100 I’d just wait for an L1 payout.
I would just like to have the tokens in my wallet on a timely basis and not losing value because the tokens are transferred at a time when the value is higher so I am not getting full value for the storage that am loaning out. That is why I asked when will the number of tokens be determined. On a monthly basis (i.e. normal payment interval as stated when we signed up) or at the exact time of the transfer? I believe that if I am owed 1 token on the normal payment day then regardless of whether it is paid that day or 30 days later it should still be worth 1 token whether or not the token has increased or decreased in value. It’s not clear to me whether this is the case. Maybe I’m just totally confused here, sigh!!!
Sorry, I’m confused buy the terminology… what is L1 and what is L2? Unfortunately, I am not deeply steeped in crypto technology. I’m just here because I had hardware that was sitting idly and figured why not setup with StorJ after a friend pointed me to it. Having a normal monthly (however small) paid was great but now I’m asked to figure out how I want to be paid it is getting to be more of a headache than I was expecting. I also would like to be paid what I have earned which I’m not sure is exactly what would happen if I accumulate the payments (i.e. extreme fluctuation in prices) or if I have to pay extra by signing up for zkSync.
Sign up for zkSync (L2) and you’ll get monthly payouts. Until you’re earning more per month the regular (L1) payouts will be delayed until you’ve met their minimum requirements (which at your current rate will take several months)
The whole Storj-Tardigrade ecosystem uses USD for all calculations, so we owe you not 1 STORJ token, but some USD value instead. And you will be paid exactly the same USD value we owe you, it will be converted to STORJ only on exact send date and time (with 5 minutes updates of the price in the send batch).
So if you want to receive the amount of earned sum in USD without taking market risks - you can choose to use L1 (Ethereum) transfers with minimum payout threshold and receive your money from time to time, when accumulated earnings will clear threshold on L1 (it should be in 4 times greater than fee to transfer it).
If you want to take market risks and receive payout every month and be able to withdraw when you want - you can choose to receive your payout via L2 (zkSync at the moment): ZkSync Payments - Storj Docs
