Decentralized storage is a great idea. Aggregating unused capacity from a distributed and decentralized network of storage nodes and making that unused capacity available to applications seems more efficient than building data centers, and it allows that aggregation of small providers to compete in a market dominated by hyperscalers.
It’s been a fun ride and a lot of hard work to get this far. We’re on the third generation of our network and we’ve delivered some really remarkable technology. With each iteration of the network, we strive to make a great product that delivers value to developers.
We’ve also iterated a number of times with the incentive model for storage node operators, from the per-node minimum in V2, to the standardized payouts, held amount, graceful exit and other incentives of V3. Here, too, with each iteration we’ve worked hard to make sure that the incentive structure is well balanced balance and ensures it’s economically viable and rewarding to be a storage node operator.
I know we’re not done iterating on the technology. There is too much great work left to do to make this a platform developers love. I also know we’re not done iterating on the incentive structure.
As we find better and better product market fit with the platform, it will become easier to align the roadmap and pricing with demand. As we continue to see growth, we’ll also continue to work on the incentive structure to ensure our node operators are also successful.
We have work planned on the product, on marketing and on the incentive structure. We get a lot of good ideas and feedback from the community on all of those things.
We’re also acutely aware that for us to be massively successful, it has to be economically rewarding to be a SNO.
So, yes, in the short term, we’ve made the conscious decision to ensure as we work through testing the market and driving adoption, we have a reliable supply of capacity by paying storage nodes disproportionately to the current pricing scheme.
Rather than cutting the payout, this gives us time to grow our customer base for Storj DCS and the time to continue iterating on the incentive model. There is a lot more to do, but we need our community of storage nodes to be successful if we are to achieve what we think is possible.