Minimum Threshold for Storage Node Operator Payouts

Storage Node Operators
#201

There is a big disclaimer there right? Yes, you can say that newbies will benefit from being able to see their storj tokens in their L2 wallets (held by a zksync contract) in which it builds trust. However, the following should be made clear also.

  1. Implementation would greatly benefit Storj as a company since it greatly reduces the amount of gas fees that Storj as a company needs to pay for small payouts.
  2. At the same time, newbies or SNOs should be informed about what they are about to get themselves into with an additional layer. Yes, L2 to L2 transaction fees are minimal, but now they are responsible for their own L2 to L1 fees.

It doesn’t help that the posts that @jocelyn made has no mention about how this affects SNOs.

4 Likes
#202

we’re pulling together some resources for zksync and dropping them into thread L2 Payouts with Zksync so people can determine if its an option they want to opt-in for.

Im also happy to go around and ask for help with specific questions.

I agree that this is important news and an email needs to be sent out. Marketing team feels the same way. We’re working to coordinate that email and get it sent out. It needs to be staged and loaded into the mailshot, etc. With such impactful news, it is important to make sure that all the right recipients get in there, so they’re going to double check and test the lists. Once the team has clarity on exactly when it will be sent, I’ll post a headsup so folks can be checking their inboxes.

5 Likes
#203

Thanks jocelyn. You may also want to include and disclose the risks of holding crypto in someone else’s contract. There are many contracts recently that were compromised and had their crypto stolen. Crypto held in a contract isn’t really held by the SNO’s own wallet. There may be a risk that any crypto held by a contact may be susceptible to loss.

2 Likes
#204
1 Like
#205

Been looking at the zksync wallet below… It is very expensive to interact with the contract (converting L2 to L1).

1 Like
#206

Everyone says their contract is secure until it isn’t.

1 Like
#207

Why not add USD or XRP as an additional option for payouts?

#208

We do not plan to change the blockchain again.
The fiat (USD) is not a option for many countries. So - no.

#209

~~ Huh, you could have mentioned … (edit - just found this was suggested a while ago actually :slight_smile: Send payments using a layer 2 scaling solution and I didn’t find this somehow before posting)

Otherwise I think this would be a good payout option as long as it’s an option. It may be tempting for Storjlabs to cut network fee costs entirely with L2 but it would not be great and here’s why:

  • L2 option carries more risk and requires more awareness and understanding by SNOs - the main reason really and the risks should be well communicated if implemented
  • It may be less optimal for SNO financially in some scenarios. For example if SNO prefer to cash out to fiat as soon as they receive the payment
  • It may not be relevant after full rollout of Eth2.0, potentially to a point where zksync will be abandoned and deprecated over the years

But I think L2 has advantages for both Storjlabs and SNO in at least some cases:

  • New SNOs will have a choice other then waiting to see first payout in half a year since starting the node. Doesn’t mean that everyone will, but they can choose if they want to trust Storjlabs or accept L2=>L1 fees/risks
  • SNOs get an option to convert Storj tokens to other currencies/tokens of choice with ~0 fee. Stablecoins mainly I think
  • Storjlabs can cut network fee costs

It’s always better to have a choice.

1 Like
#210

I would pay my transaction fee myself if i wold have posibility to withdw my money when i want, even in the midle of month. Like Storj Lab will pay once a day in internal account, and i am able to get them when i see it is resonable for me. I think it is one of the best options.

3 Likes
#211

hey there - its never our itent that anyone feel slighted. i’ll pop a couple of links, in thread

It actually did take a lot of work internally, since its not like I personally just get to decide how payouts work. if I could wave a magic wand, things would happen instantly always :fairy: ! Although maybe someday if I am elected Queen of Storj, I’ll get that magic wand. Until then, Im just a worker.

The compliance issues alone generate a great deal of activity for approval (anything token related is a major decision. And anything affecting workflow to accounts payable is very major) and also we are rewriting the dashboard which requires resources from Engineering and Product . Its not a casual decision like deciding on blue or green jacket :wink:

2 Likes
#212

Here are some relevant links to prior conversations – shoutout to Alexey for helping source the links!!

The first idea: Update on August 2020 Payouts
The first mention of zkSync:
Send payments using a layer 2 scaling solution

1 Like
#213

@jocelyn thanks, it was silly for me to assume that no one else considered this before :slight_smile: Now I see how I was wrong and I have since updated the post. I also took a note to try be more humble in future, If you could please forgive me my rant earlier, after all I’m just a human and humans are known to make mistakes.

3 Likes
#214

aww thanks @greener . no hard feelings :smiley: just glad to have you here

2 Likes
#215

I’m not saying to change the blockchain, I’m just saying to add an option, an option that have little to no problem with transaction cost both for storj and also to SNOs.

Because from what I’m reading about this L2 L1, the problem with payout still exist, storj just added some extra steps.

Sorry for my bad english…

1 Like
#216

Yes, as long as it is an choice and the pros/cons are communicated, then it is fine. However, if the opt-in is just temporary and Storj intends to fully transition to L2 with no recourse, say half a year later, then it is a problem.

2 Likes
#217

The XRP is other blockchain. They do not have a tokens, so IF we would even think of another painful migration to other blockchain - it’s still no.
USD just not a option at all, too many legal problems included. Why do you think so small amount of exchanges have a withdrawal option to fiat?
And fee would be even more expensive (at least to legal entity).

1 Like
Update on June 2020 Payouts
#218

“Yes, the only solved problem is delivery. And we finally can send tokens more often than once a month.”
But for the majority of people they would still be worthless in which case I’m not seeing the point.

1 Like
#219

You would have your payouts almost instantly.
If they worthless for you - could you please send them to me? I would find the application for them :smiley:

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#220

A net worth (after fees) of 0 is still 0 paid out immediately or not.

1 Like