Update Proposal for Storage Node Operators - Open for Comments

A post was merged into an existing topic: Storj vs Chia earnings

No, because itā€™s just my opinion, i can say STORJ ā€œshould do thisā€ or ā€œthis is betterā€, because itā€™s only my opinion. NO ONE have to consider my opinion. And no one should tell anyone how to express his/shes opinion. Thatā€™s my way of expressing, if You dont like it, ignore it please. i have very limited time, and strong believes in whats right to do, when ideas come to me, so i spelling them best i can. English is not my prime language as well.

My frustration on other hand is that someone like user ā€œKNOWLEDGEā€ here, should know every idea that was given in previous 600 or 800 post discussion, every single one, if hes a leader here on forum, and should not make disparaging statements about any of them. Because to me? it looks like searching for excuses, rather than solution. Lets look for solution. Because after May1, there will be no profitable egress anyway (no egress from customers, and egress what is still there will be slashed from $20 to $10 or even to $1,50) and what You gonna do with Your nodes? Would like STORJ to succeed, been 3 years on and off here, saw fantastic helpful people here, i love it here, but Itā€™s NOT looking good.

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Just so you know. Right now I know of commercial offers of non-redundant storage at 0.97 USD/TB with unlimited egress included, hosted at proper data centers, that are profitable for the provider. Worst case, Storj Inc. will just take advantage of these offers, as opposed to paying for overpriced storage set up on RPis at consumer ISPs.

And what are you going to do?

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Iā€™ve said before that I can go down to $1 per TB per month and I have 0.5PB available.
Ok, now I offer 0.97$ TBm, unlimited egress. :smiley:

It seems there is already more repair traffic than usual.

How does GE traffic appear as in the logs?

I would like this to be addressed, implemented ASAP so I can finish GE on all nodes before the next payrun, thanks

Iā€™ve updated the earnings calculator to be able to show per satellite payout rates and include per satellite split information for storage, egress and repair. Hopefully this will aid SNOs in making (graceful) exit decisions once the pew payout rates go into effect.

Note that at present, test satellites have barely any egress to begin with, so the impact of these announced changes may be low until that changes.

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My so called disparaging statement was, ā€œTo the SNOā€™s who keep saying they donā€™t care about Egress pricing. If Egress is not profitable for SNOā€™s, they will reduce the speed of their nodes, which hampers the overall network. It has to be worth it for a SNO to offer maximum bandwidth in order to earn on Egress.ā€

I donā€™t see that as disparaging, rather I was stating a fact, and it was not aimed at you or any commenter specifically.

While you may think that coming up with a technical solution would solve that, it is not that easy. The node software is open source, so anything there can be altered by the node operator. This then would require the Satellite to monitor performance, but how would it know that you normally have gigabit Internet speeds, but have reduced it to 64k? It canā€™t know that. Thatā€™s why we have financial incentives for bandwidth usage.

Thank you for your concern in my thoroughness to have read all the responses in all of the payout discussions. I have. I was referencing the previous payout discussions where some users had noted that they didnā€™t care about being paid for egress at all, and just wanted a base payout for storage of data, because this is then predictable where-as egress is not.

Your suggestions to lower Egress pricing is not what I was making a statement on. As you didnā€™t suggest removing Egress payouts completely.

Consider, next time, that my response was not targeted at whatever you had posted (Had it been, I would have responded to you and not to everyone), nor was it disparaging to any comment anyone posted. It was simply a reminder/statement of fact.

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And we are supposed to be decentralised?

The line that says ā€œRepairā€ in the table should have said ā€œAudit / Repairā€ It has been updated

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Sure. But there is the effect of diminishing returns here. You donā€™t need millions or hundreds of thousands of hosts to reach the most important effects of decentralization (reliability and locality)ā€”at some point actually becomes a hindrance for two reasons: the coƶrdination efforts across so many people grow more than gains from decentralization, and at some point we will run out of the best hosts (datacenters, professionals and amateurswith good IT skills) and forcing further decentralization will additionally reduce the average reliability of nodes. I would not be surprised if it turned out a few thousands of good quality nodes turned out to be enough.

IMO get someone who understands about game theory, if you want to keep it simple do a 50/50 split, storj needs to be sustainable.

You have several issues regarding storage but the biggest one IMO is cold storage.

The amount of cold data that an SNO is going to have will increase has time passes by, humans are data hoarders, so $1,5 seems a bit low for the large amount of data that needs to be up, it will come a time that itā€™s more worth it to SNO to just drop a node and start a new one.

To avoid that and incentivize SNO to keep nodes up until the drive fails miserably
at least $2/TB storage and $4-5 for egress makes sense IMO.
A lot of operators donā€™t have data caps, so upload is not really an issue, just a good router and a good uptime.

if you want to incentivize more upload usage you can try to lower the upload pricing for consumers and SNO, itā€™s not necessarily a down side if more upload gets used, SNO might get payed more in the end.

Itā€™s like that Coca-cola story where you can sell millions of bottles at $2 or just a few hundred at $10, what will drive customers to use more Storj?

Post quantum encryption might also be a selling point.

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Storj stated that they do not recommend users to invest much in equipment and do not expect to have huge revenue? now we have data centers? Missleading in my dictionary

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I used to host one on spare disk space of a dedicated bare metal machine in a data center, because, well, the machine was already paid for. Besides, thereā€™s plenty of nodes hosted in data centers now. Storjā€™s recommendations did not change, just not all node operators follow them, becauseā€”you know, theyā€™re only recommendations. If a node operator figures out how to have profit from a storage node in a data center, why they would not take the opportunity?

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A single price for any type of usage is the issue here + you focused on a specific scenario: cold storage ā€œmonopolizationā€ of a Node (which I donā€™t know if itā€™s possible)

having different prices for different types of performance and implementing ā€œqualificationā€ tests for node operators to optimize their reward based on what they giveā€¦ will make possible in future the amateur with 1gbps and HDD to co-exist with the professional provinding 100gbps link on 100% SSD storage ā€¦

otherwise Storj will or slowly become as expensive as the other players in the market (Google, Amazon, Azuer etc) when you will compare cost/performanceā€¦ because at the end of the day there is no free lunchā€¦ everything does in reality have a costā€¦ the power of Storj is it is based on decentralization but it needs to be optimized and based on what actually each and every SNO provides and they need to be rewarded accordinglyā€¦ otherwise those who excell and provide the best resources (ssd, 10gbps+, low latency) and make possible the onboarding of the customers who require the top speed/quality will at the end of the day risk to fail if they are getting paid as the guy in the garage with 1G link on his slow old hddā€¦ for the same TB / storage ā€¦ and the other way around, if we do not provide to small amateur sno the right type of ā€œworkā€ they can actually handle and earn honestlyā€¦ if we make them engage in races they cannot winā€¦ they will eventually exitā€¦ this is why ā€œoneā€ price to solve any storage use case cannot workā€¦ some will need more cold storageā€¦ and less eggressā€¦ and some more video on demand and lots of high speed eggressā€¦ so the final question is how do you ā€œmatchā€ the right ā€œcustomerā€ with the right ā€œresourcesā€ without wasting energy?

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My storagenodes pricing.db database still lists the old pricing info for the test satellites. When is this expected to be updated? (I know, Iā€™m asking really early, good morning to all those waking up in the US to this question :wink: )

Important: This is an announcement of changes to payout rates for storage nodes on three satellites: Salt Lake, europe-north-1, us2 effective May 1st. See below for details.

And perhaps there is a problem

what problem? to me at least it is not clear what do you want to say

Sorry, I meant with the Brightsilence earnings estimator. It seems to me that they do not match the earnings