Analysis of storage settlement: why fees apply to discrete retrieval requests rather than ongoing retention.
Verdict
Storage settlement is deferred on the same terms as transit. Discrete retrieval is the only operation
in the storage plane that carries a fee.
The reserved settlement tag remains none, and blob_bytes remains
a flow limit defaulting to zero. Alpha telemetry measures actual storage usage to inform future revisions.
The structural argument
Storage economics compared to transit and compute
In § Grants & receipts, transit settlement is deferred because it represents continuous,
fungible traffic. Compute functions effectively because it is discrete, specified in advance,
and concludes at a defined moment of completion.
Storage represents a stock rather than a flow. Byte-months are countable across hardware,
yet storage obligations lack a natural moment of completion.
A compute job completes upon output delivery. Storage requires ongoing retention over time.
The compute market settles at a point. Transit has no point, which is why it was
deferred. Storage has a start and no point at all — the obligation runs off the edge
of the diagram, and that missing right-hand edge is the whole problem.
The three economic objects, against the criteria the spec already uses
Property
Transit
Compute
Storage
Shape
Flow
Discrete act
Stock — a held position
Natural unit
weak bytes, but priced against an unmeasured curve
yes fuel
yes byte-months
Moment of completion
none
yes
none, by definition
What a buyer is buying
Headroom
An output hash
A promise about the future
Obligation after payment
Ends with the window
Ends on delivery
Never ends
Verifiable without trust
receipts subject-signed, hash-chained
re-run it
needs proof-of-retrievability
Status
Deferred
Shipped
Deferred — harder
Applying the existing rules
The three invariants already answer this
§ Grants & receipts constrains any future settlement mechanism in advance.
Point each rule at storage and it fails — the first one fatally.
RULE 1
Payment may raise a ceiling, never establish a floor.
Apply it literally and paid storage self-destructs. What would a paying peer receive?
A higher blob_bytes ceiling — the right to push more bytes at
them. That is a transit product with extra steps. The entire value of a storage
purchase is the floor: you will still have this in six months. The one thing
forbidden is the only thing anyone would be buying.
Fatal — nothing coherent left to sell
RULE 2
The severity ladder is never suspended.
Under transit, revoking a peer stops traffic without residual cost. Under storage, an S4
deletes the grant while data remains on the disk of the revoked peer. The ladder
operates independently of commercial positions.
Remedies operate independently of payment
RULE 3
Obligations do not require issuer arbitration.
Continuous retention over time creates an ongoing dispute surface regarding retention duration.
Atomic wire settlements cannot prove future retention at the time funds transfer.
Dispute surfaces remain bounded
Verification and dispute boundaries
Coverage is verified by sampling: missing event IDs provide evidence for an S2 report.
Reputation proofs tolerate false negatives because withholding is detected over successive windows.
Commercial storage contracts require deterministic proofs, creating unnecessary arbitration complexity.
The economic argument
Reciprocal coverage benefits both peers
A peer asserting completeness: asserted over a shared shard serves local queries from it, earns
standing, and advertises it in kind 30803 to attract peers. Shard replication provides mutual benefit to both participating nodes.
Charging ongoing retention fees for data both parties choose to hold creates artificial overhead. Mutual replication balances naturally upon shard declaration.
Asymmetric cases
Non-reciprocal storage scenarios
Three specific scenarios exhibit asymmetric storage requirements:
Leaf DM shards: A mediator holding gift wraps for a client node gains no local query benefit. Eviction follows age rather than peer request.
Historical archival: Archiving historical shards that lack current active peers lacks reciprocal demand.
Large Blobs: Media and binary packages, where storage volume scales with file size.
Default settings
The sample grant sets ["limit", "blob_bytes", "0"] by default,
and blob_bytes does not appear in the tier ceiling table.
Carrying binary blobs remains optional for all node tiers.
Text event storage requires minimal disk capacity: a community shard for a year consumes
megabytes of space. Pricing text storage introduces unnecessary protocol complexity.
The constructive shape
Retrieval pricing provides discrete settlement
A retrieval request is discrete, has a defined moment of completion, and reuses
the escrow-free construction from § Compute market. The payload is sealed
under a payment hash, and payment reveals the decryption key.
01Request names a CIDContent-addressed query ensures the buyer specifies the exact payload before transfer begins.
02Holder quotes a priceRate quoted per byte served. Objective and comparable across holders.
03Payload sealed under a payment hashEncrypted to key k; the invoice payment hash is SHA256(k). Equivalent to the sealed result in the compute market.
04Payment reveals kDelivery and settlement conclude in one step without escrow intermediaries. The buyer verifies payload bytes against the CID.
This model requires no continuous proof of space-time. Proof is verified by producing bytes on demand.
A node that discards data cannot fulfill retrieval requests or earn retrieval fees.
Retrieval settlement keeps compute and storage payments separate from standing. An operator with disk
and CPU provides services without purchasing reputation.
Second-order risk
Impact of retention fees on coverage signals
Coverage declarations under completeness: asserted indicate local store completeness.
Commercializing retention incentives over-claiming to attract fees, complicating verification sampling.
Coverage claims function as reputational signals. Coupling claims with commercial storage fees
distorts reliability metrics across the network.
Recommendation
Telemetry and measurement
Transit settlement records whether grants bind and which limit binds first.
Storage telemetry tracks four metrics during the alpha period to inform future specifications:
Disk constraints: Whether coverage_declined capacity occurs under live load.
Eviction causes: Distinguishing between age-based expiration and capacity constraints.
Blob adoption: Whether operators raise blob_bytes above the zero default.
Holding costs: Measuring empirical shard storage distributions across nodes.
Specification status
The settlement tag remains reserved at none. blob_bytes
remains a flow limit defaulting to zero.
A design note on § Grants & receipts and § Replication. The specification
defines normative rules, and this document records supporting design rationale.