This question comes to my mind since a few weeks.
Why are our earnings calculated directly in $ and not in Storj?
Ain’t this Storj Project? We supposed to earn directly Storj not $, as the amount of Storj one will receive will be variable from month to month as the price of Storj is variable.
This is also to keep cost stable and predictable for customers. Using Storj shouldn’t mean having to be invested in crypto values. Calculating everything in $ and paying as such prevents price fluctuations from factoring into that.
We started with a payout that had several days or even weeks between payout calculation and execution. More than once the storage node community (more than one operator) complained about it. We learned from it and found a solution that works better for most storage node operators.
You asked why and that is the explaination. I don’t mind if you think that this would be a lie. I am just telling you what happened in the past.
Oops, knee-jerk reaction. Sorry.
Deleted my post.
I was reacting to “why payout in STORJ instead of USD” (where I heard the same “offending” phrase multiple times), while the question was “why payout is calculated in USD and not in STORJ”. And there the present solution is about the best one could do right now.
This is a strange crypto project, when others crypto projects require participants to buy coins/tokens in order to use the network and miners mine the project coins directly, not trough a conversion mechanism.
If one says that SNO will complain if the payments are fluctuating, that a dumb assumption, as a crypto enthusiast will “mine” STORJ, rather than receive STORJ converted from $ at a higher price. This is the beauty of mining, by receiving a coin/token and assume the price. This is what all other projects are doing…
This projects becomes less and less profitable for a SNO from my perspective, as STORJ price goes up and SNO receive less.
That’s because Storj in its core is not a crypto project. It’s a distributed storage project. It just happens to use ERC-20 tokens to facilitate payouts.
As @littleskunk already mentioned, this isn’t an assumption at all. It is based on experience. Node operators were complaining about exactly this
It doesn’t. It stays just as profitable. That’s kind of the whole point, predictable income and predictable pricing for the product. If you want to speculate, buy crypto, nobody is stopping you. But if you want to earn predictable income by sharing storage space, run a node!
We’ll talk again when crypto values are dropping… I bet you won’t be complaining then.
(Looks like prices have gone up enough for this to start happening again… I really wonder where all these people are when prices fall… strange that we never hear form them during those times.)
This is not strictly true since many Storj customers aren’t paid in USD either. if the USD would skyrocket there would be considerable pressure on Storj customers based in Europe (such as yourself) and Asia. Yes, there are limits to how Storj can prevent that.
Again, not true since SNO’s expenses are often not in USD either.
I was quite obviously talking about crypto market fluctuations. As long as we don’t have a single world currency anything else can’t be prevented and the impact is negligent compared to crypto market swings, so not really worth talking about.
It is not a crypto project in same sense as mining eth with GPUs and so on. Crypto is used as a payment disctibution method, since this is the most easy and economical way if you consider accounting requirements and expenses for operating in classic currency, bank relations, possibility of stopping payments by 3rd party due to any reason and so on.
The complains would start again if we increase the time between calculating the STORJ amount and sending it to your wallet. At the moment the time difference is very low. Maybe a day or so. Most of the time you will see on your wallet the amount that keeps you happy and you can continue running your storage node.
Lets say we increase that time difference up to 1 week. Lets say we calculate your STORJ amount now and pin it but you get that amount in a week. That does change the USD amount that you will see on your wallet after one week. The price can move a lot in that time and you will be forced to take that risk without beeing able to speed up the process. At some point you will even think about storj betraying you and delaying the payout or a reason.
No. Based on the number of people impacted and the impacts felt. Crypto may be widely held amongst the young but it has not penetrated the over 50 market that much and that is where most of the wealth is held.
We have seen currency fluctuations even more extreme even in established economies. It is one of the vulnerabilities of a fiat currency. That it holds value only because a government says it does.
I’m asserting your statement is not true. You are implying stability and constancy where none in reality exists.
Can you explain that a bit more. You create a thread here and now you disallow any answeres? Who exactly is not allowed to talk now? How do you know that this person is not running a storage node? Even I can’t tell who isn’t running a storage node.