#Splinterlands - My thought about market listing fees

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(Edited)

Hello all Splinterlands mates,

Four days ago, Splinterlands team announced the market listing fees in this post. This change will be applied from Mar 7th after the regular maintenance window and I need to think a bit about my future plan.

The Splinterlands team is planning to introduce a 1 DEC or 1 Credit fee for all new listings and price updates on the Splinterlands card sales and rental markets

How does it impact to the market?

it will be charged per card that is listed or updated on the market and not per blockchain operation. We feel that this fee is small enough to be insignificant to most players while still encouraging users and automated tools to be more thoughtful about the amount of these operations that they send.

Trading market

I take a look at the trading market and the lowest listing price are the CL reward cards with the range 14.5 ~ 18.5 DEC.

If adding a 1DEC listing fee, the seller will receive a lower income of 7%. Or the buyers need to pay a higher price of 7% if sellers increase the selling price to receive the same income.
And if I include the 5% cut from the market platform then the impact will be 12%.

Of course, the impact will be lower with higher price cards. However, the major listing cards on the market are the low price cards.

Rental market

Now, let's take a look at the rental market. The below screenshot is the lowest rental price for Silver league and I consider 0.1DEC is the lowest one.

To get the same 0.1DEC per day, the renting price needs to be increased to 0.6DEC per day to cover the listing fees (for 2-day rental period), which is 600% higher than the old day.

Of course, if I include the 5% market cut + 10% of Splex's fee for using its service, the rental price will increase to 0.69DEC to earn 0.1DEC per day.

It becomes a barrier for the new players who need to rent the cards to play the game. They need to pay higher price to play.

What happens next?

With the above analysis, I will expect a continuous reduction of active players (or bots) and also new players in the game in the next couple of months until further updates from the Splinterlands team.

Personally, I feel it's very contradictory with the purpose of this change because fewer active players mean fewer transactions.
And I'm about to stop renting out the cards with small renting value.

By adding this relatively small fee and having listings that are not sold or rented expire, we can very significantly reduce the amount of data that needs to be indexed and made available as well as reduce the volume of transactions that need to be processed, which can drastically reduce our operating costs and allow the system to scale up to support a much larger player base in the future

Here are some data captured from https://peakmonsters.com/dashboard. I will come back to compare it later

3 months period (Nov 26 - Feb 261 month period (Jan 26 - Feb 26Change
Daily average transactions3,519,8372,839,248-19.34%
Daily average active players180,926162,453-10.21%
Daily average battles3,793,7313,562,847-6.09%

How do you think about this change from the Splinterlands team?

Is it still a #play2earn game or going to a play2burn game?

If you don't have a Splinterlands account, join me here 👇
https://splinterlands.com/?ref=sodom-lv

hive-13323 hive-167922 hive-131619 hive-102223 hive-184309 hive-140217 hive-177682 meme spt play2earn
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12 comments
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It's a bad idea. It hurts people who want to be active in changing their prices to best match the market. It makes it less profitable to own cards. One of the worst moves by the team. If they wanted to stop too many listings they should just make every card only be able to be listed once every 24h. That solves the problem 100%.

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Thanks for your comment.
Your suggestion is genius.
The Splinterlands team needs to identify what is the real problem here - too many transactions or too many DEC supply.
If the problem is too many transactions, then your suggestion definitely can solve it without any impact to card owners.

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You are absolutely right. I really enjoy being able to experiment with market prices without having to pay fees. Fees are always bad for small casual transactions. Satoshsi Nakamoto has been forgotten by many, huh?

Here's some fresh slice of !PIZZA and I hope it is received well.

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I like how you do this analysis, especially for coming back to it later, when the proof is in the pudding.

My first reaction to the fee was, well, that is basically a tax. Then my second thought was, well, there is a lot data going round and when earning is in massively doing things that burn server cost, then there is imbalance. And since I can (not) easily live without Splinterlands, it's not a tax, but a fee.

The prices will surely change. Yet higher prices do not necessarily mean less value. When the balance is right, there is less automation and more lively exchange. And that will be a good thing, because exchange creates wealth. I just can't tell yet, whether it is everybody's wealth or only for the whales and bots again. That's my two cents.

And for the rest of the day I share some slice of !PIZZA with you.

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I consider 5% market cut for every transaction is the tax and the listing price is a fee.
The market always makes the reaction after every change, then comes to a stable period. However, the stable form with or without new players, with or without the demand, is still a question mark for me.
If there is no demand then it's a dead market and whales are not whales anymore :)

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(Edited)

PIZZA! PIZZA!

PIZZA Holders sent $PIZZA tips in this post's comments:
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anjanida tipped sodom-lv (x1)

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