The Economics of Decentralized Storage: Incentivizing a Global Network

Date: November 27, 2025
Category: Research

A decentralized network is only as strong as its incentives. In this research post, we break down the economic model that powers Storax, ensuring fair compensation for storage providers and competitive pricing for users.

The Dual-Token Model

Storax utilizes a unique dual-mechanism approach to balance supply and demand:

1. Storage Credits: Used by clients to pay for storage space. These are stable-value credits to ensure predictable pricing.
2. SRX Token: The native governance and staking token. Storage providers stake SRX to join the network and earn rewards for proving reliable storage.

Proof-of-Storage Rewards

Unlike Proof-of-Work which burns energy, our Proof-of-Storage mechanism rewards nodes for providing useful utility. Nodes must regularly submit Zero-Knowledge Proofs to the chain. Successful proofs unlock reward distributions, while failures lead to slashing.

Sustainable Growth

This model creates a positive feedback loop. As more data is stored, the demand for storage credits rises, incentivizing more nodes to join and stake SRX, which in turn increases the network's security and capacity.