Dropbox drops unlimited cloud storage due to abuse by crypto miners

No more unlimited storage on Dropbox: Dropbox has made the decision to discontinue offering unlimited cloud storage to new customers, citing misuse by crypto miners and others who exploited the service. 

In a blog post, the company revealed that the original intention of the unlimited plan was to cater to businesses operating within a shared environment. However, Dropbox noted instances where users were "pooling" their unlimited storage for personal purposes and even reselling storage space. 

The company also implicated Chia, a cryptocurrency that utilizes a unique storage-based consensus mechanism, for contributing to this behaviour.

What is Chia Network?

Chia Network (XCH) is a crypto token that employs a "proof of space and time" mechanism that eschews the energy-intensive hardware-based mining used by Bitcoin. Instead, Chia rewards users with crypto based on "plots" of 100 GB storage space. 

This approach led to attempts at gaming the system, with users staking plots on cloud storage platforms like Google Drive and Dropbox for Chia mining.

The abuse of unlimited storage has led Dropbox to adopt a "metered" model. The Dropbox Advanced subscription now supports 15 TB shared among three licenses, with pricing at $30 per user, per month. Existing Advanced subscribers will maintain their storage levels below 35 TB for five years. 

Those using over 35 TB will retain their current data plans plus an additional 5 TB for a year. Starting November 1st, new subscribers will receive 15 TB shared by at least three users.

Dropbox's move parallels similar actions taken by other cloud storage providers. Google, for instance, has ended unlimited photo storage and introduced pooled storage models for business accounts. The cloud storage landscape is evolving, driven by the need to prevent misuse and ensure equitable access for all users.