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General Discussion / Re: Let's Lower Trading Fee
« on: October 22, 2015, 01:40:01 pm »Currently trading fee is 10 BTS for each order and 0 for cancellation. It is obviously lower than transfer fee, only 1/4 of it. However, I want to argue for lowering trading fee for several reasons.
First, we can attract more users from centralized exchanges. "Almost zero fee" can be a good catch phrase. Our most important product is the exchange platform and we need to advertise it. Luring new users with lower fees first, considering a profit then (Just curious, how many BTS are reduced from trading?)
Second, lowering trading fees can lead to much frequent orders. Unlike transfer, people are more likely to do order when the fee is low. That is, lowering trading
Third, most importantly, we need market makers. In the centralized exchanges, they place orders several thousands times a day or even more, because the exchanges do not charge for "unfilled" orders (but we do). 10 BTS per filled order is not that bad. But for every unfilled order is horrible.
Lowering trading fees can be a temporary option, like only 3 months. When we have enough user base, then we can calculate the real numbers.
Developing world will be the first to adopt this technology . You need to be appealing to the unbanked for mass adoption . Start by replacing western union and trading will follow. Transfer fees should be minimal.
The way to market to the developing world is to allow them to earn enough Bitshares to pay the fee. The goal should be to attract big whales and big money to bring in liquidity. The developing world doesn't have much liquidity so why would we want to focus on lowering fees to appeal to the poorest in the room who have the least money to provide liquidity?
Bring in people who have money first, then lower fees later on when liquidity is there. Even if there are fewer people, if the fewer participants have millions of dollars each, its more liquidity than if you have many millions in the developing world.
Well big whales can always acquire their own blockchain , why do you think they will choose your platform. This is a race agains time , whoever appeals to the masses will grab a market share and more importantly brand recognition. Aspirin is a cheap and widely available product some even claim that better than some of the prescription drugs . It contributed Bayer to become what it is today . Utility will bring value .