StorjFarmerPayoutCalculationFormula.md

Payout Formula

paymentModelFunction = function(gbHours, downloadedBytes) {
  
  HOURS_IN_MONTH = (24 * 365) / 12
  ## Average number of hours in a month
  
  STORJ_USD_RATE = 0.81671
  
  ## This is determined by value reported on https://coinmarketcap.com/ at time 
  ## of payout calculation. 
  
  gbHoursScaled =  sapply((gbHours - median(gbHours)) / sd(gbHours), 
                          function(x) ifelse(x < 0, 0, x))
  downloadedBytesScaled = sapply((downloadedBytes - median(downloadedBytes)) / sd(downloadedBytes),
                                 function(x) ifelse(x < 0, 0, x))
  ## Both gbHoursScaled and downloadedBytesScaled can not be less than 0 to 
  ## ensure everyone gets at least the base payout amount. 
  
  downloadedBytesFlag = as.numeric(downloadedBytes > 0)
  gbHoursFlag = as.numeric(gbHours >= 730)
  isQualifiedFlag = sapply(gbHoursFlag + downloadedBytesFlag,
                           function(x) ifelse(x > 0, 1, 0))
  ## At least one of the above criteria must be met to qualify for a payment. 
  
  basePayout = (1.50 / STORJ_USD_RATE) * isQualifiedFlag
  ## The current base payout is set to $1.50 USD.
  
  ghHourPayout = 11.45 * gbHoursScaled * isQualifiedFlag
  downloadedBytesPayout = 3.0060 * downloadedBytesScaled * isQualifiedFlag
  
  payoutAmountSTORJ = ghHourPayout + downloadedBytesPayout + basePayout
  
  payoutAmountUsd = payoutAmountSTORJ * STORJ_USD_RATE
  
  cbind(payoutAmountSTORJ, payoutAmountUsd)
}

Details

• Nodes that have not been seen in the past week (from the time first preliminary payouts are calculated) are not included in the metric totals
• Each component (gbHours and downloaded bytes) is scaled so that each metric ends up being a measurement of how far away you are from the median
• Those values are multiplied by certain weights and summed to arrive at a final value

Why define HOURS_IN_MONTH = (24 * 365) / 12 if 730 is going to be hard coded later on? Also, won't months with different number of days have the different GB requirement thresholds when holding time fixed at 100% per month? This seems arbitrary: 31 days >= 0.98 GB; 30 days >= 1.01 GB; 29 days >= 1.05 GB (and using 364.2422 doesn't make a difference). Hosting about a GB per month should be easy to do, but I don't quite understand why payout was calculated this way. It's quite unfair to February!

Anyway, I'm late to the game, so I'm sure the payout algorithm is quite different today.