RE: Revamp Market Fees to Include 2% DAO Royalty
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The 1 DEC listing fee was implemented by the Splinterlands company (I had nothing to do with it!) to prevent mass listings of 0.1 DEC rentals and constant rental price updates which caused their server costs to be too high.
Your take regarding the current proposal is correct, it is an additional cost to ownership that is realized when you sell. However, this cost isn't going to any person or company, it is going to the community (the DAO), which is controlled by you and everyone who stakes SPS.
In addition to funding the DAO, the main benefit of this in my opinion is that these DECs will no longer be circulating. What I mean by this is that I personally do not believe any proposal to spend/sell the DEC will pass until we are at peg, besides simply burning it.
With less DECs in circulation, there is less supply thus we get closer to reaching peg, which is ultimately the goal of this proposal.
Hello cryptoeater,
thank you for responding.
Firstly I didn't realise this proposal came from a Splinterlands Community Member, so I apologise for my oversight.
I do have some concerns regarding trying to reach 'DEC Peg', a lot of proposals seem to either directly state this goal as an objective or appear to be designed to achieve this goal.
The previous SPS Governance proposal that I mentioned also involved 'DEC Peg' as charging for listing sales and rentals takes more DEC out of circulation. Thus increasing the value of DEC against the US Dollar.
I think the Community needs to ask how much we need to manipulate the game economy to reach DEC parity, whether it is necessary to reach DEC Parity and, what will be the overall cost to the game to reach this objective.
If we overreach DEC Parity will we be fine-tuning ad infinitum to maintain DEC parity?
If the cost of listing level 1, 2 and 3 Commons and level 1 and 2 Rares on the market is prohibitive these cards will not be available to new players. This will stifle the take up of the game by new players as people can't even get the cards to play and 'earn' if the rewards are reduced to 0 for playing Starter cards each game.
A potential solution to rentals is reducing the fee from 1 DEC per listing to either 0.01 or 0.1 DEC. Or 'level of card' * either of these proposed new values, making the fees more scalable with the potential rental value.
However, this would take less DEC out of circulation.
If we look at the reasoning that Splinterlands wanted to reduce costs and that introducing these changes to Rental Fees addressed this. Then what will be the impact on the revenue earned and services supplied by PeakMonsters or MonsterMarket from this proposal? I presume their costs will remain the same. Will their revenue be reduced? Will they decide to take the hit or 'shut up shop' if the running costs are too high? What will happen to the smaller service providers? They have all lost revenue already from rentals because the lower level Commons and Rares are not being rented out as much.
I would like to thank you cryptoeater for raising this proposal, and for the personal effort you have made to improve the game.