Holders of decentralized storage startup Storj Labs' early SJCX token need to act soon to avoid losing their investments.
The firm announced Tuesday that its long-running token conversion program – in which it swaps users' SJCX tokens, built on the Counterparty blockchain, to the newer ethereum-based STORJ token – will end on Jan. 1, 2020.
The firm said the number of conversions have been "sufficiently" low over the past six months to justifying the decision. The conversion period was originally set to end in mid-2018, but this period was extended for users who hadn't made the swap.
Any remaining tokens held to fund the conversion program will be moved over to the Storj general reserve after the closing date, the company explained.
Storj’s tokens are used to incentivize those with spare computer storage to store and protect its enterprise users’ files.
The token conversion began two years ago when Storj announced its intention to migrate its decentralized cloud storage service to the ethereum blockchain. At the time, users could convert their tokens on a one-to-one basis.
In its announcement, Storj said shift to ethereum meant lower transaction fees for STORJ holders, as well as improved security and programmatic payments. CEO Shawn Wilkinson previously told CoinDesk that reasons for the move also included the larger user network on ethereum and the lack of development on the Counterparty network.
Network concept image via Shutterstock