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RE: How to Improve the Internal Market - Steem/SBD - With Better/Fairer Liquidity Rewards and Implied Prices...

in #internal-market8 years ago (edited)

Honestly I think a good liquidity reward in a decentralized system like this that doesn't get gamed and serves a useful purpose is hard enough to do, and the value low enough, that we should just leave it alone and focus resources on building out the social media portion.

The internal exchange has zero fees and also zero counterparty risk (i.e. Bitfinex risk, most recently) which ought to be enough to attract traders if there is any sort of real market demand at all for the service. If and when that happens, competition and more activity will naturally narrow the spreads there.

The original attempt and the (I believe sincere) attempt to fix it already cost the system over one million dollars in rewards that were paid out and ended up buying very little useful liquidity (at times the spreads were tight, but usually not, and that still ignores the question, even with tight spreads, if anyone actually wants this service very much). That's enough losses on this experiment for me, given what I see as the value of it all (low, but I'm happy to let the market decide).

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