RE: SPS Governance Proposal - Reduce SPS to DEC Conversion Fee
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I might be standing on a hose here (german proverb), but I don't really understand what the pros and cons are for this. Reducing conversion fee is positive for those who hold a lot of SPS, not so much for those who are holding a lot of DEC for CA, relatively. My interpretation, that's not displayed.
today's requests are much more organized and with a greater consensus of support around an actionable number to build a proposal for the DAO to vote on.
That's great, but still vague. A greater consensus is not an argument in and of itself. Could you please add a source that explains why we should vote in favor? What's the benefit for the community, the DAO, ...?
This has been brought up quite a few times in the past, but there was never a clear indicator of how to proceed.
If the "how to proceed" is lowering the fee by 2%, it's not really rocket science. Seriously, what am I missing? Please bash or enlighten me, because this seems very opaque to me.
If the fee is reduced, who benefits, who loses? Will be DAO have less funds available? Wouldn't it be catering to those who speculated on SPS in the last week (and the whales), shooting up the price so much, to now be able to get a lot more DEC for their SPS and hence get a big advantage on the CA Pre-Sale and with that for the following Modern? Is that fair, 10 days before starting?
Please proof me wrong! For now, I think it would be better to think it through and not react under recent SPS-Boom-Pressure. I really hope I'm wrong 😅
For me, and what I think of investing into CA, 2% might not be that much. Hence my thought that it caters to those who have a huge stake. Which I honestly don't even have a problem with, as most of them do a big lot for the community (stabilizing the market etc.) but it should be labeled as such - if it's the case.
As this was not my idea I am not going to convince anyone to vote for or against it. I'll let those that feel strongly about this do so if they wish to try to convince you or stake can just vote it out. Personally I don't feel strongly about it either way. Lower barrier to entry doesn't bother me, burning more SPS is good. I can see it either way.
Okay, that makes sense then, thank you for pointing that out. I'll try to find some extra information on the topic then, or just wait for a lot of comments to drop. Thank you for taking the time to answer!
But you well timed it so that whales who bought lots of SPS could get more DEC, is this not using the system to gain advantage and benefit the whales? I would rather have this implemented after the pre-sale.
I can explain. Lowering the fee is a good thing for everyone. It helps with SPS to DEC conversion as it will help the flywheel. You can study about the flywheel:)
I think there is no one loosing and no one gaining here rather I just see that now you would need lesser amount of dec for you to be incentivized to burn because with the current proposal DEC should be @1=1005dec instead of 1= 1025dec to activate the fly wheel because by then a dollar worth of sps would be equal to 1005 dec so your incentive to burn would be starting at 0.5% above peg. One can safely say players are loosing but on the other hand we want to burn sps so that it gains value more and and the quicker the better i think. I believe that is why Matt is saying even to remove the incentive it will still be ok