Another tranche of the Storj token reserves has been unlocked and started to be sold.
In 2022, 4 tranches were sold.
In 2023, 1 tranche has been sold in Q1 and another one is being sold.
It is just informative It’s is possible that in a year it will get hot topic.
Really thanks!! i dont know how to create a topic! I will use this one to follow up the Storj Token reserves!! I am really curious about what will happen when the token reserves are 100% drained.
Since the “Transfers from Lock Up” cover SNO payments, service provider payments, some salaries and bonus and “Other” concepts are paid by token reserves, i really think it is important to keep their balance updated.
My personal speculation is that when the token reserves are drained, the project will become economically unviable.
Why? They are adjusting payments to have a profit per unit of TB / storage / eggress.
And this alone would solve the problem, not to mention expansion, and also increase of Bitcoin price due to halving soon, which will most likely bring Storj token price back to ATH, and so they will need to sell less of it to cover the payments to SNO, so it will last longer…
Net network operations = SNO payments - STORJ Revenue = -1.3M STORJ
Service Provider Payments = -2.3M STORJ
Storj employee salary and bonus = -4.4M STORJ Other (general operations and liquidity purposes) = -19.8M STORJ
So you expect the new SNO payment plan makes the Net Network Operations positive and, even more, enough to pay Service Provider payments, salaries and bonus (7.7M STORJ)?
Let’s forget the blurry “Other” concept for a moment.
I really wish you are right but if we don’t see another bullrun during 2023 that makes STORJ price rocket and reduces the STORJ token reserves draining rate, I doubt the economic model will be sustainable.
Next halving will be in about 1 year now. With the current draining rate (~30M STORJ token per quarter), there will be no STORJ token reserves left in the same period.
Thanks for reporting these numbers, I wasn’t aware for it… but this being the case… I would suppose that maybe Storj does have other source of revenue other than that related to the public service provided with the SNO.
Unfortunately token flows alone don’t paint the whole picture. Of Storj Labs’ financials. Nor do they have any requirement to publish those. It’s also worth mentioning that line 9 subtracts STORJ-denominated revenue, which muddies the picture even more.
That said, I do share some concerns about the limited runway. Unit profitability is a good and important step, but it doesn’t take care of all the more static costs which at the moment are way too high to be able to compensate for. Growth of paid data has been good as also mentioned in the town hall, but it doesn’t look like it’s enough. I believe they said 16% month over month, which would be about 600% in a year. That’s nothing to scoff at, but seems insufficient to have profit cover those static costs.
That said, we can’t see revenue that comes in in dollars. Or large contracts which may be paid ahead for several years, which could be happening in markets like this. And if growth of paid data remains, Storj Labs may not need much longer than 2-3 years to become profitable as a whole. There are of course also always options to attract other investments, which becomes easier if they can show steady growth over time.
Unfortunately with incomplete information, all we can do is speculate. Which is definitely what my entire post is… Speculation. So, keep a healthy amount of salt at the ready to take with it.
I agree, but selling HUGE amounts of STORJ token at so low price is a bad sign, at least for me.
We will get rid of doubts and speculation when the token reserves are empty.
I personally think there will be no problem for the project:
If it comes to the crunch, they will Release the Storj 2.0 token and „Print some new Money“
No problem as Storj-Coin is only a utility to pay out the people and Not related to the Company itself.
Thats bad for us who hold the originally Storj-token but the Company will survive.
All these millions of STORJ tokens that end in Binance from Multisig1 in only 2 txs… surely are not to pay out the people (at least not the node operators)
That would be an excellent way to instantly make all existing tokens and any future issued tokens by Storj Labs implode as the markets will never trust them again.
That’s what he meant, I think. They lose trust, they lose company.
But tokens are one thing. Who knows if they don’t have USD (or other) reserves as well? Like, any current investor may add a couple more millions if the project starts to shine. So all we see is current state, but we don’t know what the “players” are going to do. They invested so I don’t think they can just pull out taking anything - they need to wait for profit and dividends. But they can always add more, no? Or is it totally not a thing?
Another Option might be a large customer that is buying storj token directly from the source to have reserves to pay for the service in the future. Since this also gives 10% bonus it might be worth it.
It’s another option. Anyways, Storage Node Operators payouts are done in STORJ token. With the big STORJ bag from the token sale, all the SNO payouts are “for free”. Can you imagine what would happen if all these token reserves are gone? I don’t see Storj Labs buying STORJ tokens for payouts.
It’s is possible that in a year it will get hot topic.
