STORJ Token Balances and Flows Report: Q3 2019


The STORJ token is an integral part of the Tardigrade network. STORJ tokens provide a quick and easy way to transfer value between Storj Labs, those who provide storage capacity and bandwidth to the network, and those who use it to store and retrieve data. Today, we’re pleased to publish our quarterly STORJ token report for Q3 2019. Please note paragraph b below, announcing the planned closing of our SJCX-STORJ converter.

We began publishing token reports in 2018 (see our first one here), with updates provided through quarterly reports like this, and during our quarterly town hall meeting

The information here can be recreated directly from the Ethereum blockchain, but we find it helpful for our community to have this information compiled and presented in a clear and transparent format. In the same spirit that we make our code and other materials publicly available, we make our token balances and flows open and accessible.

The detailed report appears below, but here’s the TLDR (don’t forget to read the disclaimer at the end of this post!): 

a) 245.0 M STORJ are in rolling timelocked contracts. As previously discussed, we initially relocked 100% of our timelocked tokens every six months. During Q1, we divided the timelock reserve into eight equal sized tranches of 30.6 M tokens that unlock in successive quarters through Q4 2020 and relock respectively to the same quarter two years later. For example, the tranche that unlocked in Q1 of 2019 was relocked to Q1 of 2021, and the tranche that unlocked in Q2 of 2019 was relocked to Q2 of 2021, and so on. Each of the eight tranches has its own address, which are provided below. The tranche that unlocked last quarter will be relocked by the end of this quarter until Q3 of 2021.  

b) We began the quarter with 6.8M STORJ reserved for converting the legacy SJCX token. 6.8 M STORJ were in the converter at the end of Q2 and now again at the end of Q3.  The conversion from the Counterparty asset (SJCX), on the bitcoin blockchain, to the ERC20 token (STORJ), on the Ethereum blockchain, began over two years ago, with minimal conversion in the past quarters. As such, Storj will be shutting down the converter by the end of the year.

c) Of the 43.7 M STORJ in operational reserves held by Storj Labs at the end of June, 6.2 M were used in Q3, primarily for paying third-party service providers, storage node operators, and for the Storj employee salary and bonus programs, leaving 37.5 M in our operational reserves. We continued the voluntary program (launched during Q1) which allowed 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 129.5 M STORJ in circulation at the end of June. In the past quarter, an additional 6.2 M have been put into circulation, making the total circulating supply approximately 135.7 M STORJ. Another 37.5 M + 6.8 M = 44.3 M are in operational and non-timelocked conversion reserves held by Storj. The address for the converter hasn’t 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 non-circulating supply is 289.3 M, comprised of the 44.3 M in non-time locked reserves plus 245.0 M in timelocked reserves. The total supply is 135.7 M in circulation, plus the 289.3 M non-circulating supply = 425.0 M.

Q3 19 Token Report Totals

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’s 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 eight equal sized tranches, which are currently locked, with expiration dates over the eight 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 8-17). 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 who monitor our various forums, respond to questions from users, and perform other community-related tasks; bug bounty participants; consultants; contractors) 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, Other, is reserved to report activity that doesn’t fall into any of the other categories including, for example, payments to service providers paid out in a quarterly timelock.

Line 15 is reserved to report a decision to transfer STORJ from Long Term Lock Up to Operating Supply.

Line 16 is reserved to report a decision to transfer STORJ from Reserved for SJCX Conversion to Operating Supply.

Totals

Line 18 is the non-circulating supply of STORJ, which is the number of tokens in Storj Labs custody.

Line 19 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 20)

CONFIRMATION

We’ve provided addresses for our major reserves below, so that totals can be easily verified. The tokens from Tranche 3 will be relocked by the end of the quarter until Sept. 30, 2021.

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

Q3 19 Token Report Addresses

Note: To confirm timestamp in etherscan.io, click on a wallet address link above. Then, select the “filtered by token holder” link, and then click the “Read Contract” link. Item 5 is the timestamp.

DISCLAIMER

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

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. 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 token, 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.