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101 sats \ 2 replies \ @Undisciplined 10h \ on: 📣 Community Feedback Requested: Predyx Fee Structure oracle
The 1% winnings fee was bothering me, because it disproportionately discourages people from putting more capital into highly likely outcomes.
What I think would be better is to make it 1% of the profits from winning, rather than the whole value of the winnings. That way, we still have an incentive to send probabilities towards zero.
I was also thinking that you may want to charge a flat fee of like 1 sat for transactions to and from external wallets. Assuming you're doing something useful with the sats you're holding (like node routing), then you want an incentive to keep sats onsite.
yes - great thinking, 1% of the profit makes more sense.
At the moment, we're not charging anything for external wallet transfers with few nuances:
WITHDRAWL: Predyx wallet to -> user wallet - both invoice + lnaddress: free from Predyx, however the network fees are auto deducted from user's Predyx wallet.
SALE: Market wallet to -> LNAddress (when a user sells shares): free from Predyx + also no network fee. [We need to fix this as pointed by @ek due fee siphoning attack]
SALE: Market wallet to -> Predyx wallet (when a user sells shares): free from Predyx + no network fee is required as these are inter-wallet transafers.
At this moment - we try to discourage node routing (by adjusting routing fees) because we try to maintain a ratio of inbound and outbound liquidity as per market requirement - in other words, we just try to be prepared in an unforeseen event where all Predeyx user wants to withdraw at the same time. However I think my thought/motivation is flawed here. We should be doing the same thing what Block/CashApp is doing i.e making 10% APY.
I like your idea of charging 1 sat flat fee.
I think to make it fair we should NOT charge 1 sat flat fee for inbound payments (User wallet -> Predyx/Market wallet)
But we should charge 1 sat flat fees for all outbound payments (Predyx User Wallet and Market Wallet -> User's external wallet)
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we just try to be prepared in an unforeseen event where all Predeyx user wants to withdraw at the same time
That's very important. Some of the other services I wrote about have tarnished reputations because users have had difficulty recovering their funds. Trust is very important here, since you're asking bitcoiners to risk their sats on a zero-sum game.
That said, remember that if everyone tries to sell at once, the prices will move dramatically. For whatever reason, we tend towards loading up on the Yes side, so if we all try to sell the price will drop and you'll end up paying out much less than current price x shares.
We should be doing the same thing what Block/CashApp is doing i.e making 10% APY. I think to make it fair we should NOT charge 1 sat flat fee for inbound payments (User wallet -> Predyx/Market wallet) But we should charge 1 sat flat fees for all outbound payments (Predyx User Wallet and Market Wallet -> User's external wallet)
Exactly. Bitcoin is a capital asset, so you want to hold it on your end and do useful stuff with it that doesn't reduce your ability to cover payments. Whatever yield you manage can offset user fees, which reduces trading frictions and improves your competitive advantage over other betting sites. Deepening your markets in that way will then increase the value of the information product that you're creating.
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