Decentralized storage owners starting with the first Storj Labs SJCX token must act quickly to avoid losing their investments.
The company announced on Tuesday that its long-standing chip conversion program – in which it would exchange users' SJCX chips, built on the counterpart blockchain, against the new etheric-based STORJ token – will end on January 1, 2020. .
The company said the number of conversions had been "sufficiently" low over the last six months to justify its decision. The conversion period was originally scheduled to end in mid-2018, but has been extended for users who have not yet made the switch.
Any remaining chips to finance the conversion program will be transferred to the Storj General Reserve after the closing date, the company said.
Storj tokens are used to encourage those who have unused storage space to store and protect their business users' files.
Token conversion began two years ago when Storj announced plans to migrate its decentralized cloud storage service to the Ethereum blockchain. At that time, users could convert their tokens on an individual basis.
In its announcement, Stoj stated that the move to Ethereum involved lower transaction costs for STORJ holders, as well as improved secure and programmatic payments. CEO, Shawn Wilkinson, had previously told CoinDesk that the reasons for the move also included the wider Ethereum user network and lack of development on the counterpart network.
Network concept image via Shutterstock