BitShares Forum

Main => Stakeholder Proposals => Topic started by: CastAway33 on May 25, 2017, 09:23:38 pm

Title: [Vote Proposal] Dynamic Fee System
Post by: CastAway33 on May 25, 2017, 09:23:38 pm
I've seen a couple posts in the forum history about adjusting fees "up" or "down", depending on the price of bitshares at that time in the past. I would like to offer an alternative approach to fees. Dynamically adjusting fees.

In the past 2 months, the price of Bitshares has gone up over 10 times to the US dollar. Correspondingly, all fees also went up 10 times.

If the stock price of Poloniex went up 10 times, and because of that, Poloniex decided to also raise their trading costs 10 times. I don't imagine their customers would be very excited about that.

Most other digital currencies never solve this problem, purely because they can't. Their systems​ have no idea of outside prices. For example, the current cost of sending Bitcoin is nearly up to $0.50 per transaction.

Bitshares is a far more advanced and efficient network than practically any other, and it is able to track the real time prices of other assets in the currency.

It is possible that we could dynamically adjust the price of fees based on the settlement price an asset, like the bitUSD or bitSILVER. Or another idea could be to adjust fees based on basket of assets combined.

Proposal: Vote on changing to a dynamic fee system.
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: sahkan on May 26, 2017, 05:51:22 pm
If the stock price of Poloniex went up 10 times, and because of that, Poloniex decided to also raise their trading costs 10 times. I don't imagine their customers would be very excited about that.

Well, guess what ... Poloniex charges a percentage, something like .15% - .25% for entry accounts so yes, their fees went up by as much as a trading coin did in fiat (23 times on ether for example).
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: CastAway33 on May 27, 2017, 02:01:29 am
Thank you for the insight, sahkan. Though that's not exactly what I meant with my example, but I digress.

My point was that the cost of running the network (electricity, pay for workers, etc), has a cost value that is more closely linked to the value of the Dollar, than the value of Bitshares. The price of Bitshares could go up to $10 over the course of a year, but the cost of running the network is likely to change very little.

I'm hoping this might provide something useful for us Bitshare holders.
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: sahkan on May 27, 2017, 04:18:18 am
It seems that everyone continues to peg DEX to USD. Why not CNY? My point being that DEX runs on BitShares ecosystem and though I understand the relationship of BTS to USD, we should stick with BTS as that's what gives it value. If we relate everything to bitUSD, why even have BTS? The danger of using some bitUSD : BTS ratio is that if ever anyone can manipulate BTS to be worth $.0000000001, anything that uses BTS from the reserve pool will run it dry in a matter of minutes (unlikly though, I'm just showing an extreme example here..)

I also understand that we want to have stable fees etc., I believe if we can find balance in the BTS ecosystem among witness pay, worker pay and fees, we should be able to run DEX based on BTS only with a healthy reserve pool.
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: demo on June 19, 2017, 06:42:44 am
I've seen a couple posts in the forum history about adjusting fees "up" or "down", depending on the price of bitshares at that time in the past. I would like to offer an alternative approach to fees. Dynamically adjusting fees.

In the past 2 months, the price of Bitshares has gone up over 10 times to the US dollar. Correspondingly, all fees also went up 10 times.

If the stock price of Poloniex went up 10 times, and because of that, Poloniex decided to also raise their trading costs 10 times. I don't imagine their customers would be very excited about that.

Most other digital currencies never solve this problem, purely because they can't. Their systems​ have no idea of outside prices. For example, the current cost of sending Bitcoin is nearly up to $0.50 per transaction.

Bitshares is a far more advanced and efficient network than practically any other, and it is able to track the real time prices of other assets in the currency.

It is possible that we could dynamically adjust the price of fees based on the settlement price an asset, like the bitUSD or bitSILVER. Or another idea could be to adjust fees based on basket of assets combined.

Proposal: Vote on changing to a dynamic fee system.

the solution is not a dynamic fee, but an adaptive fee.

https://www.dash.org/forum/threads/proposal-adaptive-proposal-fees.14803/
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: yvv on June 19, 2017, 12:28:00 pm
Why the fees can't be decided by the market, such that a user chooses how much fee (s)he wants to pay, and witnesses decide if this is enough,  then process transactions with higher fees faster and put low fee transactions in queue?
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: xeroc on June 19, 2017, 12:35:08 pm
Why the fees can't be decided by the market, such that a user chooses how much fee (s)he wants to pay, and witnesses decide if this is enough,  then process transactions with higher fees faster and put low fee transactions in queue?
Thats an unecessary barrier that doesnt align with the scalability of bitshares. It will take years until we actually see a 'queue'
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: fav on June 19, 2017, 12:35:35 pm
Why the fees can't be decided by the market, such that a user chooses how much fee (s)he wants to pay, and witnesses decide if this is enough,  then process transactions with higher fees faster and put low fee transactions in queue?

this is a company, we need guaranteed revenue.
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: CastAway33 on June 29, 2017, 02:37:02 am
IMHO, as long as trades remain flat fee and near $0.001, then I will always promote the BTS network. That's an amazing deal
Title: Re: [Vote Proposal] Dynamic Fee System
Post by: xeroc on June 29, 2017, 09:53:20 am
IMHO, as long as trades remain flat fee and near $0.001, then I will always promote the BTS network. That's an amazing deal
To be fair, the issuer of an asset may add a percentage fee (such as the OPEN.X assets) that is paid on filled volume on trades