On the main site is says users are paying 7$/TB for bandwidth. Where is $20/TB paid to storage node operator coming from?

Hey, can anyone explain this?
On the main site is says users are paying 7$/TB for bandwidth. Where is $20/TB paid to storage node operator coming from?

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the client payments was reduced but the storagenode earnings was kept.
one day when it becomes relevant for them, storjlabs will change it…

keep in mind they don’t want to scare away the SNO’s they have,
and they still have lots of runway left and is doing quite good.

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Hello @DarioPavlic ,
Welcome to the forum!

Basically - from Storj’s pocket.
We want to incentive Storage Node Operators to stay with us, while we attract more customers.


thank you both for replies!

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Hey Alexey, are you free maybe to share some of your insights about Storj with me? I’m in the process of researching decentralized storage solutions and trying to compare all of them

All information is public, I do not have any special insights.
You can ask in the public section of the forum, there is no secrets.
I would recommend to read at least these resources:

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I’m wondering why there’s no official Storj telegram or discord group. Would be so much easier to find the answers and have more chill conversation.

I have some questions and it takes a lot of time to find answers.

1)For how long can Storj Labs subsidize the price paid to storage nodes for bandwidth (end users paying 7$ and storage nodes gettin paid 20$/TB)? Is there a document or blog describing the economics in a whole? Like there are for Arweave or Filecoin

2)Where is the most usage for Storj coming from? What users and data categories?
Where do you guys see the biggest opportunity for Storj to capture bigger market share?
Also what’s exactly a value accrual for Storj token if you can actually pay for storage with fiat? I’ve read somewhere in the forum that users are getting discount if they pay in Storj, but can’t actually consider that as a big value for the existing token holders. Please correct me if i’m wrong

3)If i’m not wrong than probably there is no point in asking the next question, but if I am wrong > are there any economic models simulating possible impact of increased usage on Storj token price?

4)Are there any devs/users willing to share their experience with Storj and explain why they are using Storj instead of some other solution?

I started as a Storagenode operator because i found Storj as being one of the only at the time (2017) i think, Storj doesn’t waste my system resources, which will also be a customer advantage, because the less wasted resources the lower prices would be possible.

there are really not many true options for full decentralized storage.
and certainly not with a long proven track record.

the transactions are calculated in dollar value, so there is really no impact on the eco system no matter what the Storj Token price is.
this allows people to invest in the token if they feel like it, or buy it based on when they need to pay for dollar value.

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As for the rest of your questions, others will answer it better.

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I’m not exactly sure how Filecoin or SIA are storing the data. I think Filecoin is replicating it as well (and not storing the whole data on the same IPFS node), so one could argue it’s decentralized. The issue i have with Filecoin is that it’s impossible for smaller storage providers to compete on the market as hw requirements are insane.

Hm but is there any incentive to buy the token than? it seems like it’s only used as a medium of transfer? If i get it correctly, user pays $, which is exchanged for Storj token on the protocol level and paid out to SNOs who than need to exchange it again in $ to cover their costs.

The token is not meant to be HODLed. From your questions it seems a bit like you want to guesstimate if you should buy STORJ tokens hoping that they will be worth more in the future. Don’t do that.

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well not really. I’m just in the process of research of decentralized storage solutions and how they compare to each other (and to centralized options) in every aspect - token utility, economic model, network utilization, service expansion potential etc

Hi Dario,

We don’t talk about the Storj token unless it comes from Storj’s legal team. Our Executive team answers questions, typically, during Town Halls and Fireside Chats. You can pose a question when we have those and they can answer as time allows.

As for the dollars and cents between what we take in and what we pay out. We have people look at this stuff all the time and make adjustments as needed. When they happen, they are communicated down to the node operators. I think everyone understands that the price of storage and bandwidth gets cheaper and so in order to remain competitive prices will have to reflect that. At the same time, Storj continues to build out new features that will enhance usage for things like egress, that will enable node operators to make more money in the long run.

I understand you’d like more details on the specifics of how everything fits together precisely and where it will all lead. However, being a start up company, we have limited resources and are currently focused on growth. When the time is right to release news and information, we will do it, like we always do.


hey, thank you for your reply!

That’s why I actually asked someone if we can talk about it in DMs. :smiley:

Yeah this totally makes sense. However, limited resources vs subsidizing for stuff on the network doesn’t seem sustainable long term. Are there any models or suggestions how to solve this once companies reserves are getting to an end? Will there be a change in overall economics?

I don’t think you’re getting it. They don’t talk about it because they don’t want to give any specific audience more information than anyone else. Doing it in DM’s would make that worse, not better. At least the forum would technically be public.

For any information on token specifics, look for the quarterly token reports on the blog and updates in the quarterly town halls.

I didn’t expect someone from the team talk about it in public nor in DMs. I was referring to anyone else, sorry for not clarifying in advance

Oh I see, well anyone else can just discuss it here. There is no need to go to DM. But you asked quite a few questions only people at Storj Labs could answer.

You can look at the token reports I mentioned before to see what the reserves are. Those aren’t all used only to pay storage node operators though. So keep that in mind. But there is quite a bit of detail in there that you could extrapolate from.

There is a white paper, but that goes into the technology more than the economics. Storj Whitepaper V3

I think I mostly responded to this already here:

I think all the other questions can really only be answered by Storj Labs. And those regarding tokens will probably be left unanswered. Perhaps they could respond to the question regarding customer testimonials and use cases.

As a starting point:


Hope that helps

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