STORJ Token Balances and Flows Report: Q1 2019


The STORJ token is an integral part of the Storj network, providing an efficient and effective means to facilitate the transfer of value between those who contribute excess storage capacity and bandwidth to the network, and those who utilize that excess capacity for the storage and retrieval of data. Today, we are pleased to publish our quarterly STORJ token balances and flows report.

We produced the initial version of this document in November of 2018, and updated it with 2018 year end data for publication in conjunction with the town hall held on January 16, 2019. This version is dated as of the end of March 2019, and compares results versus 2018 year end. We expect to publish updates quarterly at each subsequent town hall.

While it is possible to recreate this information directly from the Ethereum blockchain, we think it is helpful for storage node operators, customers, Satellite operators, and others who use the token, to have this information compiled and presented in a transparent manner for easy consumption. In the same spirit that we make our code, roadmaps, and other items publicly available and transparent, we want to make the token flows accessible as well. As with all of our posts concerning the token, please see the disclaimer at the bottom of this post.

The detailed report for the activity in the quarter is below but the quick summary is:

a) 245.0 M STORJ are now in rolling time locked contracts. As previously discussed, we initially had a pattern of relocking 100% of our timelocked tokens every six months. During Q1, we divided the timelock reserve into 8 equal sized tranches of 30.6 M tokens. Those tokens are now set to expire in successive quarters over the next 8 quarters, and we are following a pattern of rolling timelocks. (e.g. the tranche that unlocks in Q2 of 2019 will be relocked to Q2 of 2021.) There are now 8 new addresses, one for each timelocked tranche. Those addresses are provided below.

b) We began the quarter with 6.9M STORJ reserved for converting the legacy SJCX token. Less than 50,000 SJCX converted in Q1, so this number is essentially unchanged from December.

c) Of the 48.4 M STORJ in operational reserves held by Storj Labs on Dec 31, 2018, approximately 2.1 M were used in Q1, primarily for paying storage node operators, third-party service providers, and the Storj employee bonus program, leaving 46.3 M in our operational reserves. We also launched a voluntary program during Q1 to allow employees to take a portion of their salary in STORJ token, and those sums are included in the employee line in the report.

d) There were 124.7 M STORJ in circulation on December 31, 2018. That number was equal to the 75.1 M tokens sold in the token sale, plus the 43.1 M tokens exchanged for SJCX between the sale and December 31, 2018, plus the 6.5 M in tokens used for operational purposes between the token sale and December 31, 2018. In the past quarter, an additional 2.1 M have been put into circulation, making the total circulating supply approximately 126.8 M STORJ. Another 46.3 M + 6.9 M = 53.2 M are in non-timelocked conversion and operational reserves held by Storj. The address for the converter has not changed since the previous report. The bulk of the remaining operational reserves are held in a cold wallet, whose address has not changed since the previous report.

e) The total number of STORJ is the 126.8 M in circulation plus the 53.2 M in non-timelocked reserves plus 245.0 M in timelocked reserves = 425.0 M.

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Overview

In May of 2017, Storj Labs International SEZC (formerly Storj Labs (BVI) Ltd), a wholly owned subsidiary of Storj Labs Inc., conducted a public token sale. While most of our focus in the past year has been on building our company and our network, we want to provide a detailed update on token flows since launching the network. As a reminder, we intend to provide a quarterly update on the business and network through our quarterly town hall meeting. It is our intention to produce this token report on a quarterly basis.

Background

The Company reports its tokens to management in three categories:

  a) Long Term Lock Up

  b) Reserved for SJCX Conversion

  c) Operating Supply

Long Term Lock Up

245 M STORJ are held by Storj Labs for future use (lines 1-3). These tokens have been split into 8 equal sized tranches, which are currently locked, with expiration dates over the 8 successive quarters.

Reserved for SJCX Conversion

We track a token converter application that converts SJCX tokens to STORJ tokens at a predefined rate of 1:1 (lines 4-7).

Operating Supply

We track the operating supply of Storj tokens (lines 8-16). These tokens are held by Storj Labs, Inc. or Storj Labs International SEZC and are intended to be used for operations as described below.

While we quote payment rates to storage node operators in dollars, Storj Labs pays storage node operators using the STORJ token, based on the current spot price on the major exchanges. If, in any given month, the amount to be paid to storage node operators exceeds the amount of STORJ tokens received from customers, there is a net outflow of STORJ tokens (line 9). We expect this number to increase substantially with the launch of the V3 network.

Line 10 is reserved for any repurchases of STORJ from the open market.

In addition to storage node operator payments, we make payments to certain service providers (e.g. community leaders, bug bounty participants) in STORJ token (line 11).

Line 12 is reserved for any SJCX conversion made outside of the token converter referred to above.

We have a quarterly bonus program for Storj Labs employees based on company milestones defined by management. We have also launched a voluntary program to allow employees to take a portion of their salary in STORJ token. Finally we have various spot bonus programs from time to time. We track all of these programs in line 13.

Line 14 is reserved to report a decision to transfer STORJ from Long Term Lock Up to Operating Supply.

Line 15 is reserved to report a decision to transfer STORJ from Reserved for SJCX Conversion to Operating Supply.

Totals

Line 17 is the non-circulating Supply of STORJ, which is the number of tokens in Storj Labs custody.

Line 18 is the total circulating supply of STORJ tokens, which is the number of tokens outside of the custody of Storj Labs.

The maximum total that could be in circulation is 425.0 M (line 19)

Confirmation

We’ve provided addresses for our major reserves below, so that totals can be easily verified.

If you have questions, clarifications, or suggestions on how we can better present this information in the future, please let us know!

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DISCLAIMER

_This report is provided to the many individuals in the Storj ecosystem, concerning the circulating supply and flows of the STORJ token. _

The STORJ tokens are intended to facilitate the provision and receipt of data storage and related services through Storj Labs’ software application, which serves as a user interface and development platform on the network. The STORJ tokens are not intended to be a digital currency, security, commodity or any other kind of financial instrument.

The contents of this publication contain a high-level overview of the network and the STORJ tokens, and are subject to change as Storj Labs refines its plans. Changes to the network, the STORJ tokens, and other information referenced in this post are entirely within the discretion of Storj Labs, and could result from commercial, technical or legal issues, among others. We believe that greater transparency around the STORJ token will contribute to the willingness of users, storage node operators, and other service providers to participate in the network. While we have made every attempt to be accurate and thorough in the production of this report, it is provided as is, and you should not rely on this report for any decisions regarding the use, acquisition, or disposition of STORJ tokens.