BTS referrer program bring a price more higher than reasonable, no referral will be happy if he get known the price is so high and 80% are paid to the referrer. on the other hand, it's not easy for the referrer to recommend a product/service with so high price.
please understand why Chinese are sensitive to the price, China is a country where alipay is free, wechat payment is free, most inter bank transfers are free.
I have discussed the reasonable transfer fee above, for BTS the reasonable transfer fee can be 2-5 BTS.
fee are the renenues of the network, but also are costs of shareholders/users. transfer fee are friction, friction always slow down economy.
in the updated plan, there will be 3 mode, both mode A and mode C are flat fee, but for A the fee totally go to network, for C referrer will take 80%, the flat fee will be set by committee, but I think A will own a lower fee than B. BTS is the fundamental asset in the system, need to be applied mode A with transfer fee as low as possible.
for public smartcoins, as now there are privatized smartcoins, so its ok for public smartcoins to be applied mode B. users do not like referral program/high fee can play with privatized smartcoins.
Some logical reasoning:
1) If A is free to choice, why people choose C? So Fee of A should be lower than C for non-LTMs, but higher than C for LTMs.
2) based on 1), if volume raises of doesn't change, choosing A means the network will gain some, referral program and LTMs will loss some, and probably the asset issuer will gain some. To be fair, the network and the issuer need to compensate the referral program and LTMs in some way.
why need to compensate referral program?
the referral program + high fee cause a lot of old users leave, should referral program compensate the whole system?
Can you proof your claim?
The purpose of the referral program is to motivate business to attract new users. It never was the idea to pay the "whole system" (whatever you mean by it)
then do you mean because there is a referral program, so we cannot have a mode A?
It seems we are all very close and we can get this done with BSIP10. What about something like this
@bitcrab?
Mode A: 1 cent per transaction to the network (no incentive for referral program or membership)
Mode B: 1% per transaction, 1 cent minimum fee (example max. $1/$10/$20), lifetime/annual members: 1 cent
Mode C: flat 20 cents per transaction, lifetime/annual members: 1 cent
In all three modes 1 cent goes to the network so it's fair and the network doesn't care which mode anyone selects. Mode B & C adds an extra fee layer that all goes to referrals.