Why does Storj use the STORJ token?

oh yes the pair is temporary unavailable… I remember that it used to work although I never explicitly tried it. But since it says “temporary” I hope it’ll be available again soon.

with the surge payouts I’m making a lot more money than electricity.

True, if it’s just electricity, but if we calculate hardware deterioriation as well, the number doesn’t looks good unless the utilization & fill rate improve, by a lot.

Hardware deterioration? The hardware should be running anyway.

Perhaps, for some SNOs who already have a 24/7 running hardware with spare disk space. But definitely not all. If we want to talk about real growth and sustainability for storj network, I don’t think it is wise to limit SNOs participation only to this specific scenario.

And nobody can just “create” higher utilization on tardigrade network, that will depend on the users and developers…

All business depends on customers willingness to purchase and use the product, but we can certainly do something to motivate and encourage them.

I apologize in advance if this reply sounds harsh or offensive to any party (which I assure you, is NOT and never my intention). Against storj recommendation, I am pouring money for dedicated storage node hardwares. I want storj to succeed, as I have stake as SNO and potentially, a decent sized tardigrade customer.

You may find this knowledge base article useful. Note that some coin swapping sites do not require you to make an account or KYC, so at least it would make the first step of the conversion a bit easier.

Doesn’t it allow Storjlabs to essentially pay SNOs using “printed” money? That way they didn’t have to pay lots of money to get people to run storage nodes in the alpha and beta phases. In addition, they get real money from clients, and pay using the printed money to SNOs, making great profits. Only when their STORJ token reserves run out will they spend actual money (to buy more STORJ tokens). However, I have no idea how much STORJ they own so take this post with a medium sized bag of salt.

Aside from that I can’t think of a good reason to use cryptocurrencies for this since they are very inefficient compared to centralized currency (if you look at the amount of energy required per transaction). This is the case with 99% of fully decentralized solutions, so it makes sense that Storj is actually not really a decentralized solution: the data is decentralized, but without the satellites there is no network.

If you want more info about the token reserves Storjlabs has, they report on it every quarter. Most of the reserves are in lock up to protect the market against the possibility of a lot of STORJ being dumped on the market at once.

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Why just not pay directly in Ether? then you just no need nothing in addition

That discussion probably needs a side-thread…

However, it’s desirable to get paid in a token whose value is not directly tied to the value of ETH. There’s also a lot of financial investment already in the STORJ token… along with a complete payment ecosystem.

if you need to exchange, there is 2 options, Ether and bitcoin, and if you exchange directly to money, it always on background exchange ti by Ether ot Bitcoin, so it not a lot of choice any way. And having directly payment in ether just take away 1 step of conversion.

Here is the latest report:

well at lets say 0.05$ pr payment thats an added overhead cost of 6000 SNO’s x 6 Satellites x 12 months in a year
432000 transfers of 0.05$ giving us a grand total 21600$ added overhead a year…
while using storj tokens it’s in house computer gear and electricity, which then is a greatly reduced number, might be talking out of my ass tho, not really that knowledgeable in all things crypto.
but thats how i have understood it… anyways… so the question becomes…

would you rather be paid in ETH or actually have the funds go towards making a better product, making your life simpler… ofc if you get ETH payouts, then you would save 0.05$ a month, but it’s not because the money saves comes out of nothing…

and in the end, if it was to be changed, you really think you would gain anything from that… because storj would just adjust the payout pr TB to account for the costs they have…
somebody has to pay somewhere… using ones own token for administration makes good sense imo.
personally i don’t really care how i’m paid… tho i do kinda see owning storj tokens as a modern way of dealing with shares of companies… i doubt thats a correct perspective… but if it isn’t then maybe it should be.

No, they should not. Shares are regulated in a significant different way than a utility tokens. Tokens will not be a shares of Storj.
Owning any amount of tokens will not give you any legal rights in the company. It could be your investment as a trader, but it will not be investment into Storj.

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I agree with the STORJ vs. ETH statements in your post…

Maybe Storj would be willing to have SNOs give up a percentage of their escrow for the first three months on just the testing satellite and then get a one payment in ETH of whatever has accumulated… or something like that.

Again, my purpose in the suggestion is to onboard crypto newbies, not to mine ETH via Storj payment manipulation.

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i said i saw tokens like being the future and that might be the way people should think of them in general.
just makes more sense… no matter

so let me make sure i got this right… nah … hodl my beer while i go read through relevant documentation on all of this.

i mean the token needs to be backed by something… anyways going to research… i feel unarmed for this discussion which has until now been fairly irrelevant to me since i didn’t own any tokens… but that will soon change…

The beer is a good example. When you bough a beer (a service in our case), you bough it in the can. The beer’s can in this example - is a STORJ token. You can have a lot of beer cans of the beer company, but they will not give you any rights in the beer company.
The purpose of the beer can is deliver the service (beer) to you.
However the beer’s can is have an own cost and you can sell it or use it as a exchange to a beer, but you probably should have a lot of empty cans for that :slight_smile:

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went through the relevant points in the white paper, didn’t seem to touch on the actual theory of how the token would work… where would i go to find that…
i mean i always assumed that the corporations or tardigrade users would be using storj token to buy the services, that way it makes sense… (to me) as there would be a flow of tokens in the ecosystem.
and with a “limited” supply it would create a certain supply and demand flow in the storj token value.

yes you may compare it to beer cans, but beer can’s have intrinsic value as they are made from aluminium, and thus can more or less endlessly be recycled and used for whatever purpose.

the storj token has no intrinsic value expect what is created by a promise of lets say a tardigrade end user interest in paying a SNO for the tokens.

the storj token is essentially a Promissory Note, like a regular fiat $ bill holding on value expect that which people ascribe to it.

so my question is how exactly does that work…because as a SNO i would really like to understand the fundamental theory behind the valuation of the token.

As showed the example with old deprecated SJCX tokens based on Bitcoin, even if they did not have a usage for years, they have had an intrinsic value and successfully traded on several exchanges for years after we deprecated them and migrated to the ERC20 STORJ tokens…

Your assumption is right - the purpose of the STORJ tokens is to buy a storage service with discount and pay for service to SNOs. The token proposed to be used in the other services related to the Storj network, for example - to pay to Open Source projects if their customers uses the Tardigrade network for storing and retrieving data. It’s made as connectors. Every time when customer uses the Tardigrade service from the partners’ software (you can see it on the https://documentation.tardigrade.io/how-tos/backup for example), the partner will receive some revenue and of course in STORJ tokens.

what if i don’t want to give them a discount… in theory it’s not really something you should be able to decide… i mean if you rent out the network for tokens, then SNO’s are essentially the ones collectively choosing the price of the Storj Token.

The theoretical life of a token would be as payment to a SNO, then sold to a Tardigrade User and then traded back to Storj in exchange for usage of the Storj network…and the cycle starts again…

or am i missing something here.
so far as i understand it, anything else than such a cycle would just lead to devaluation of the storj token, ofc the only real long term problem i see in this concept is… how exactly does storj make money then, because it would essentially be the SNO’s that would pay ETH to storj for their services.
when the ecosystem is fully operational

SNOs get paid a uniform rate for services rendered. It doesn’t matter how much the customers are paying.

excuse me…

if access to the tardigrade / storj network is bought by storj tokens, and storj tokens are only paid out to SNO’s for supplying distributed bandwidth and capacity, then if SNO’s didn’t sell off their tokens nobody would get access to the network… but lets be fair thats unrealistic, but in theory possible and that should be accounted for in the structure of the a financial ecosystem.

without such a cycle the token would essentially be meaningless and most likely end up being worthless.

maybe supply and demand could save it… but if storj sells network storage / access for cash, then …O.o then the token is simply a promissory note without any commitment, unless if storj want to do some sort of buyback program… which well lets face it … they got what… like 400million of the damn things already… i forget the xact number.

Storj pays SNOs in STORJ … so, if eventually the token becomes scarce, Storj will need to buy STORJ tokens from the market to pay SNOs…

However, it doesn’t matter what each token is worth, because SNOs get paid in constant USD valuation.

So, if 1.0 STORJ = $100.00 … then an SNO might get paid 0.003 STORJ rather than 10,000 STORJ .

But the SNO payment will always be in STORJ, because the payment system itself is so incredibly inexpensive to use… beyond any other considerations.

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