Why you do not staking tokens?

For a blockchain based project, using a utility token which is tradable, I miss here the option for a lifetime plan based on STORJ staking. I think this could help the platform in several ways. Think about fidelization of Clients that are at the same time investors, holding the token. Without this kind of mechanism I feel like tardigrade is missing an opportunity, at least at this early stage.

Staking and overall value of each individual token aren’t really a component of the ecosystem. In this way, STORJ is much closer to BAT than to ETH or BTC. And that’s a good thing… there’s not much need or use in hoarding the tokens. This probably will mean a fairly stable valuation over time. A stable valuation is a really good thing for both Storj as well as SNOs.


Interesting, I kindly ask your help to understand the model you are referring to. I read some time ago this article. If a stable price is OK, I still see a risk of price drop and an opportunity for eveybody in price rise. Consider that I can buy STORJ now to fill my account with them, I don’t want to see a price drop nor in near neither in the long them. Which is the mechanism that today ensure price stability? Why hoarding token is bad? Why use STORJ instead of a stable coin to get payed? I’m confused. Thank you for your time.


The Year of Every ICO

Almost all ICO valuations for all coins and tokens from 2017, are currently sitting around -99% ROI.

At the base of this discussion is the definition of what money is… Money is a medium of transfer of wealth. It’s nearly impossible to use a wildly fluctuating medium as a transfer of wealth. Someone is going to get stuck at the low end of the transfer. This is one reason why BTC will probably never go mainstream for payment of goods and services.

STORJ is a utility token, not an investment token. It’s purpose is to pay SNOs… aka transfer wealth from Storj to SNOs… aka function as money. Therefore a stable valuation benefits both sides of the transfer.

The Storj network has money flowing into it through fiat deposits by customers. The STORJ token is used to transfer those payments to SNOs in an inexpensive and automated way through blockchain transactions. In this way, STORJ is backed by the value of the customer data. Meaning, there is something “real” binding the system of money together.

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well the last townhall said that they unlocked portion of reserves, thus yes storj token prices will drop, because more tokens are entering the eco system.

if you want to predict the storj token prices i would almost bet that keeping track of the locked pools of additional tokens are the primary way of doing that…

any token could essentially be used for the process, besides the token price is irrelevant for SNO’s or for tardigrade customers because they pay based on $, so really the only reason to have one’s own coin is accounting, initial fundraising was also based on that, had something else been more popular at the time, i’m sure storj would have chosen that…

having your own coin, does allow you to control the value a bit more, and you can have customers or hold incredible large sums of tokens which could have immense future value… but if i was to bet then it’s simply easier to do accounting over a coin… and like beast said… cheaper.

storage is also going to get cheaper, likewise technology… but that doesn’t really affect the storj token value… the only thing that will affect that is how many people want to store stuff on the network…
if the demand goes up because the network finds a use case others have difficult supplying, then the value of the token can essentially explode until rival technologies enter the market.

tho if that was to happen then i suspect we would see releases of more tokens from storj, to exchange some of their hardwork into fiat, houses and cars xD

and they would be stupid otherwise, ofc increasing the number of token in circulation wouldn’t make the network more powerful, it would just drop the price of the coin… putting more strain on the SNO’s for less… so i guess it’s mainly a matter of who presses the button at the right time…

keep in mind that at some point there will be a lack of supply if the SNO’s or Storj doesn’t sell off the coins, if there are demand for the network service… obviously…
so really stuff like this tend to be self balancing.

it is an interesting subject tho

Heard in the Storj Meeting room
HEY! guys there is this kinda new thing called crypto…
basically you exchange hype for real money…
i bet we could make an awesome round of funding for the project based on that…

All in favor? xD



Ok, so basically value is kept stable controlling the ratio between the STORJ token volumes that are “released” to SNOs and the income collected through FIAT deposits to pay the service. I see less stability in the “backed by data” model. Probably the early stage of the project is not helping but I see now great volatility of the token value compared to a stable coin. I would say, similar to which of many cryptos and substantially correlated to the BTC value. I’m still not sold, sorry. I see your point but I don’t see how it’s going to happen. I still believe staking would help here.

Staking takes tokens out of circulation. This drives the price of the tokens higher. A persist rising token price will yield the following result:

  1. SNOs would begin hording the tokens
  2. Storj would start emptying the token pools to pay SNOs.
  3. SNOs would continue hording the tokens as the price rises.
  4. Customers would still be paying the same dollar value for the same service.

Eventually, the value of the tokens is larger than the value of the network. At that point, a large sell off occurs and the token value plummets as profits are taken on the over-inflated valuation of the token.

Staking does nothing to improve the network… all it does is allow “get rich quick” schemes… which populate much of the crypto-sphere and are also its bane.

Conversely, staking of ETH is a great idea… because it converts the infrastructure from PoW to PoS and makes the infrastructure stronger and more valuable to build things on…