What if Ethereum gas prices stay high?

Node Operators
1

As of this writing, here are the current transfer costs:

Current Average Gas Price:	89.0 gwei
Current ETH Value:  		$275.90
-----------------------------------------
Average Simple Transfer:	$0.516

This is insanely high historically speaking. I’d be willing to wait a month for payout… or set a minimum trigger value of $50.00 USD … I’d prefer funds to be spent on making the network better rather than paying transfer fees.

Looking forward to stable transfer fees in Proof of Stake Ethereum 2.0

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2

i do kinda agree with beast, however there are also a couple of other factors/issues…
for one exchange rates…

if we are paid or if the storj value isn’t paid out, how is it counted… do we keep the dollar amount or do we keep the storj token amount at time of usual payout…

because since the storj value has gone up by nearly 200% in the last few months, the this could be a relevant question…

if we have them in the usual dollar value, then if storj prices drop then storj would have to payout a lot more tokens…

if the dollar value is converted into token on the “payout” date, then if the token value drops afterwards then they will only have maybe half the value…

but i don’t really get a meaningful payout or have any meaningful amounts of storj collected yet!.. so doesn’t really matter much to me…

i’m fine with delaying my payout a month…

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3

Maybe in the future there will be an option to hold payout or set an amount you would liked to be paid minimal. And if you want to hold and be paid out manually. So if its a low amount you dont waste transfer fees.

4

Gas price depends on the demand - the more transactions are there - the higher the price will be. By the way gas limit was increased from 10m to 12.5m just recently and the previous increase from 8m to 10m happened in september last year.

5

After thinking about it for a while… I think the payments should be held until such time as the payout transfer fee is a certain percentage of the total payout rather than a timed event… with a cash out option that includes the SNO paying the transfer fee.

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6

Its kinda like when your mining and you have to hit a minmal payout and you also pay fees doing so, This would be much better for storj as they are paying for all of the fees which equals out to be quite a bit when it comes down to it. But there will be people that arent happy when they would have to pay for the fees themselves though there will be alot of conflict im sure if this ever gets put into place.

But I 100% agree with a way to be able to cash out. But then again this isnt mining.

7

imo if people bitch about the fee then they aren’t serious about the project… ofc that won’t keep people from bitching about the fees…
the fee should be a minute part of the payout else people cannot be making any money on running a storagenode…

8

Payments are always counted in USD and money is converted into STORJ at the moment the payment is happening. It’s the same with the held amount. So nothing would change.

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9

yeah but if payout time is changed, then that also becomes a factor how much will be paid out… i’m fine with them being stored as $ because i’m betting the storj token value will drop

10

I guess my only issue with that if the price of storj get pumped with payment is done at the “wrong time,” you somewhat get less than you kinda earned.

I’m a bit torn on which is “better,” per say. But I say that about any of the crypto projects that are not paid in their own value vs being based on some exchange rate that fluctuates.

Edit: I guess I did not consider @SGC’s point that Storj is not a “to the moon” type of crypto, and will mostly devalue as more is put into circulation over time.

11

This is only a factor if you are considering yourself being paid in STORJ. You are actually being paid in USD via the STORJ token. If you exchange it right away, then you get that USD, If you decide to HODL that’s a personal choice. STORJ is meant as a utility token, not (necessarily) an investment. I say this as I am HODLing tokens from the original token sale a couple of years ago.

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12

I guess that also depends on if you’re actively or passively tracking your Storj involvement- ie. if you’re monitoring your dashboard a 1 to several times a day VS checking your Storj install once or twice a month and using a monitoring script to just tell you when it goes down/has issues.

Given that fact- I could see a dual payout method:
option A: auto paid every month, 10 days in from the end of the prior, regardless of accrued amount, possibly with a fee if below some sensible mark vs the ETH gas needed for the transaction.
option B: paid into escrow, similar to hold-back, and ability to automatically dump out once a higher threshold is met for no fee.

Admittedly, I’m HODL-ing too but that’s due to having not moved enough gwei into that address to cover moving up to a years worth of Storj (see “I’ll do it later” mentality).

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13

well that’s the point, if we aren’t paid for this month, then they would had been paid out… and thus changed from dollars into storj

so no matter what happens, either the SNO’s or Storj will be taking a loss… because people money was held in dollars and paid in storj…

i was saying i don’t mind they are stored in dollars, but some people might rather want them to be in storj, but then ofc they could just pay the transfer fee…

maybe this will be the payout where they roll out that we can control when we will be paid

14

There is no loss. Since it is exchanged at payout time you always receive the dollar value in Storj. The loss may just come afterwards if the Storj values is currently falling.

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16

At the moment…

Gas prices are at:

  • 229.0 gwei
  • about $1.85 for a simple transaction

!

17

It isn’t looking good this month, is it?

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Low Average High
ERC20 Transfer $31.72 $31.72 $34.18

If we would send it today, the Minimum Payout Threshold on L1 would be $126.88

$ curl -X POST -H 'Content-type: application/json'   -d '{
>      "jsonrpc":"2.0",
>      "id":1, "method": "get_tx_fee",
>      "params": ["Withdraw", "0x80a52B7F26426d2b16578FC5f376c349F54772A7", "STORJ"]
>      }'   https://api.zksync.io/jsrpc | jq
  % Total    % Received % Xferd  Average Speed   Time    Time     Time  Current
                                 Dload  Upload   Total   Spent    Left  Speed
100   322  100   172  100   150    421    367 --:--:-- --:--:-- --:--:--   791
{
  "jsonrpc": "2.0",
  "result": {
    "feeType": "Withdraw",
    "gasTxAmount": "53100",
    "gasPriceWei": "150098305571",
    "gasFee": "2601504685",
    "zkpFee": "397822",
    "totalFee": "2600000000"
  },
  "id": 1
}

26 STORJ * $1.5039/STORJ = $39.1014

And no Minimum Payout Treshold

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19

TBH it is not looking good for the forseeable future on L1. Doubt the problem will be just this month. Oh well, will probably need to wait until late 2022 now for first payment.

I’m still dumbfounded this wasn’t the expected outcome from the London fork.

20

and useless unless you want to pay storj for their services or be a token speculator.

21

And impossible to send fiat anyway. Switching blockchain not in roadmap too.
So, three options:

  • use L1 to receive payouts (once a year maybe :thinking: with current fees :confused: )
  • use L2 (receive payouts every month and deal with fees later, the only difference - you can pay this fee in STORJ tokens)
  • leave the network if you disagree with Node Operator Terms & Conditions

Unfortunately there is no fourth option yet.

1 Like