Level2 alternative for minimum threshold SNO payouts

I don’t mind the threshold, it’s understandable. Just thought to suggest this as I was looking into L2 recently and thought this might be a good optional alternative here.

Going forward it may be worth considering adding optional Loopring or similar L2 solution for payouts. It’s a stretch but bare with me:

As far as I understand L2 protocol aggregates a bulk of internal transactions and release them to L1 eth chain periodically in one go while keeping Ethereum-level security guarantees. This allows cutting gas fees by orders of magnitude.
Storj would be able to transfer the sum of all payouts in storj tokens to their L2 account (single L1 gas fee) and then issue individual payouts to SNO L2 accounts with ~0 fees. This would still be storj tokens paid to SNO and would be on eth chain. Loopring have released android wallet and ios up next. I don’t find it supporting Storj tokens yet but they might be willing to if Storj approach them. Also it seems Storj can distinguish L2 from L1 address for payouts by format of the address string.

The consequence of this would be:

  • If using L2, SNO can exchange Storj tokens to Eth or any other token for ~0 fee on L2 account and keep it there until enough is accumulated to withdraw to L1. For new SNO this would be the only way to see any payouts early with threshold in place for L1. On the other hand SNO would need to pay a normal gas fee in order to move tokens back to L1 and there might be added risks.
  • Storj would significantly cut payout fees and lift the threshold for L2 payouts. On the other hand Storj would need to come up with a way to support optional L2 payouts as well as current L1 payouts.

I’d personally opt in for L2 payouts even if I pass the current threshold due to flexibility to convert storj tokens to eth/usdt with ~0 gas fees. Though I don’t know how good/secure Loopring is, they seem to have a good track record and the protocol seems decent and trusted, wallet seems to work great.

Thoughts?

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I appreciate your solutions-oriented approach. Thanks for sharing this idea, and for writing it so clearly

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