The elephant in the room: Where is the Storj token utility?

So far the only utility of storj token is (that should drive demand)

  • 10% discount if you pay with storj instead of fiat (if you even can call this an utility)
    The other deemed utility is paying nodes with storj, but that is not an utility in the eyes of the storj holders, the opposite actually since it creates downward pressure on the price.
    The official version is that token is needed to make the thousands of payments to nodes, since it wouldn’t be practical to do with fiat, but that argument doesn’t hold much water since it is much cheaper to pay them with ETH directly instead of with ERC20 ETH token…gas prices for sending tokens are higher than sending just ETH.

So we all that invested early in the project (2017 for me) feel kinda left out in the cold.
We believed in this project, we bootstrapped it with our cash, and now we feel like we are just being used.

Nowhere is mentioned any future planned utility for the token, something that accrues value to the token in relation with the project success.
I’m addressing the team here, do you have any plans to introduce such utility for the token?

Since you pay node operators with Storj token that you already have, and take mostly fiat payments, where do those money go?
Are there plans this fiat to eventually be used to buy up Storj on the open market to pay node operators once your reserves run out?

Gives us something here, we were with you in the early days, believed in you, gave you our cash, and now we are left hanging.

3 Likes

I understand you want an official response but in the meantime

thanks but that link doesnt load

Keep in mind that communication around tokens and their use will always go through very specific channels. Like the quarterly token reports and town halls. Storj Labs wants to be an example of responsible token management and treats it like one would treat information around market sensitive information for stocks. This means you’re unlikely to get any information around token goals on this forum. You may be better off sending your question to ask@storj.com so it can be addressed at the next town hall.

That’s probably not the answer you want. But it is what it is.

5 Likes

I’m also really confused why an ERC20 token is needed to do what Storj does.

Don’t get my wrong I like the idea here alot. But if the goal of the company (we are dealing with a for profit company right?) is too give the node operators 60% of the revenue (thought I read that somewhere), why bother with the token? Especially considering how high Etherium transaction fees are. Why not just pay out in cash?

Well there are 100+ countries where nodes are hosted. Have you ever tried to figure out how to pay people in cash in 100+ countries each with their own banking system and some with barely a banking system at all?

6 Likes

Well, call me cynical but the reason for using tokens as payments is that they’re mostly make-believe money, so when Storj Labs send me 1 STORJ for my services, they didn’t really send me any money. It’s a nice way to start a company and needing a lot less initial capital outlay.

Although I accept that this whole crypto token thing is like voodoo to me so I may be (and almost certainly am!) grossly oversimplifying it.

1 Like

Yes, ETH
sending ETH is cheaper than sending token anyway

It’s also outrageous there is no communication from the team on this super sensitive issue. Screwing their investors.

Eeeasy there!
You’re not forced to join the SNO pool, and if you’re so particular about that then you should have done your homework before joining.
Please, don’t make such inflammatory remarks in this forum, leave them for Twitter.
This is a community forum and Storj Labs has absolutely no obligation to post information on it.

1 Like

What SNO pool? I participated in the ICO with significant amount helping make what you are using today reality.
Now we, the early investors that made all this possible are left out in the cold and neglected. I’m in my full right to be dissatisfied with how the team handles this sensitive matter!

My apologies, I misunderstood your situation.
My comment, however, still stands.
This is a community forum and whilst sometimes Storjlings do chime in, they are under no obligation to do so.
I would once again suggest that you contact Storj Labs directly.

I think this link might work for the Q1 2021 Token Report

1 Like

This touched mostly their locked tokens and operational expenses.

What we need is token utility that allows the token to accrue value according to the protocol success, that’s what im asking for.

Right now only utility is you can pay for storage with token (right?) but there is fiat option as well so most retail users won’t go through the extra hassle.
And at the same time ALL storj node operators are paid in Storj so the downward pressure is greater.

Btw what happens with the fiat used to pay for storj, is it going to the team or is/will be used eventually to buy back storj when they run out of their own supplies?

So that I can understand - You gave Storj Labs money? Did you get something for them?

yes the storj token which is getting increasingly useless

Understood, thanks for the information.
What was the conversion rate then? For $ 1, how many tokens did they give? 2 tokens for a dollar?
Anything else they promised back then?

You could have sold about 9 weeks ago for a nice profit. And even around $1 it should be a good ROI.

What else did you expect you can use STORJ for other than buying storage space on the network?

1 Like

So… here’s the thing. All of this was known before the token sale happened.

Company may also act as a re-seller of the storage services offered by Farmers (“ Managed Service ”). Under the Managed Service option, users pay Company for the storage of the files they upload to the Network through Storj Share in Tokens, Bitcoin, or U.S. dollars.

And by my account you more than doubled your investment. (With recent peaks being over 6x your initial investment)
So can we calm it with the outrage and discuss what your actual issue with Storj Labs is? Apart from not reading the terms of a token sale you took part in?

They do indeed frequently respond to questions here and they’ve even responded specifically to the suggestion to pay out in ETH. But… I guess that means having to use the search feature…

4 Likes