SPS Poll - Should we change the Market Fees?
Intro
The initial feedback on the market fee proposal was very much in line with my own thoughts. Just for context, that was the original idea suggested (changing fees to 10%) and I suggested the alternative as it seemed less extreme and taxing at scale. In my misguided attempt at fairness I figured I should run the original idea for posterity, clearly it was not well received (as I had expected). That said, feedback is still good and useful. Time to learn and grow and do better.
I am definitely a fan of the stake-weighted polling as it allows for more open-ended feedback and have been using it. The feedback can be a bit limited though when people don't participate. Currently I'm discussing the idea of getting a 3rd page on the in-game proposal system where we could link to polls and have optional alerts for people that want to participate. Hopefully we can get that done with minimal fuss.
Poll
Since we already have the (failed) proposal linked on the site, I'll go ahead and make a poll to link on that post so that hopefully we can get something of value out of it. I'll do my best to keep it simple. If there is significant demand to explore options on how to change the fees, then I'll do more polling to get into specifics. For now let's focus on this question:
Should We Restructure the Market Fees?
No, don't change anything.
This one is pretty straightforward. We shelve this issue and just leave it alone.
Yes, some to the team or DAO. Keep the burn.
If you are interested in adjusting the existing 6% fee to ensure the team or DAO receives some portion from market fees while keeping the burn percentage the same, then choose this option. If it wins we'll do some more polling to figure out what percent breakdown people want.
Yes, some to the team or DAO. Remove the burn.
If you are interested in adjusting the existing 6% fee to ensure the team or DAO receives some portion from market fees while removing the burn percentage, then choose this option. If it wins we'll do some more polling to figure out what percent breakdown people want.
Yes, Increase market fees for Team or DAO share.
If you would prefer to see an overall increase in market fees to add some share of all market fees that goes to the team and or DAO, then choose this option.
Since it's not an option, what I would want is to reduce the fees. I voted change nothing because I believe that giving the 2% to the team produces a similar effect to burning them. If that's the case, why spend some dev time doing so?
Why do I believe it doesn't change much? When we started sending some DEC to the DAO, many believed it to be essentially burned. Turns out it isn't quite like that and the team has already made proposals to take some DEC from the DAO. I'm not saying this is wrong, I'm saying this is what has happened. When the team needs money, they will ask the DAO, and we've seen that the SPS stakeholders usually accept. If the team gets the DEC that was being burned, they won't have to ask for DEC from the DAO as often or as much.
This is why I believe this change doesn't do much and only wastes dev time. Still, I'm ok with either option, as long as the fees don't increase. It would be even better if they were reduced, though.
If the market volume picks up significantly (like bull market) then maybe we should lower them. Perhaps a dynamic approach is better. I am very against the 10% fees myself, which is why I took the time to try to come up with an alternative (the 10 dec listing fee) but it seems neither is well received.
I think if we see the market doing 100k+ volume a day, maybe there's an argument to lower the market fees. If it's doing a million dollars a day in volume (raging bull market craziness) I think it would be a much easier sell.
All of that said... we could look at the situation we're in right now and also say... maybe we should keep it like it is in a raging bull market and the marketplaces need to save those profits to carry them through hard times like we're in now.
Ultimately I don't feel too strongly about either of the proposals, but I do think we need to always be aiming to make the ecosystem self sustaining.
I actually think it's the opposite. We should make fees lower when things aren't looking so good. If we're in a full bull run with people buying cards left and right, tons of new players and new money entering the ecosystem, that's when the fees won't matter as much. That's the time to stock up the money for when things calm down again.
Fair enough... at this point, unless I see some overwhelming demand to try something else I'm probably just going to leave it alone. I do think something dynamic based on volume could be interesting, but probably unlikely to happen.
Yeah, something dynamic would likely take a lot of dev time and be open to exploits. If we were going to change it, based on activity, it would have to be something like "let's reduce it to X% right now and when we see transactions above Y for a certain amount of time, the team is free to increase it to Z%.
Still, it's probably for the best to leave it alone unless most of the SPS wanted them lower.
Some useful info from @asgarth here, I will try to get more data from the team as well.
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Honestly this Polls are no good. With only 1 vote from a teammember you surpass the vote of everyone else.
These Polls just dont have enough visibility and nobody cares about them.
Polls are definitely only as good as the amount of participation they get. Unless I see some overwhelming demand to revisit this topic, it's likely just going to go away.
We love more value going to the DAO & SMC! Thanks for making the poll!