People are discussing this polo and I agree with the traders (who by the way, are one of our main target markets):
* The fee to place a trade needs to be extremely low. Just enough to prevent spam.
* The fee to cancel an order should be 0.
* The fee upon the EXECUTION of an order should be "high" (aka, current levels).
I agree with Ander's premise that the cost for placing a trade should be low, the cost to cancel should be zero, and the cost of successful trade execution should be high. bytemaster's proposal is intended to accomplish these goals while providing incentive to NOT leave orders open on the dex. I think it's an elegant solution, although I'm not sure there's much of a problem with people keeping unnecessary orders open because when your order is open it ties up your funds. So that already provides far more incentive to close any orders that don't need to be open.
With that in mind, I think it would be much easier for people to understand the fee structure if we simply charged a spam fee to place an order, then either zero to cancel OR a full fee upon successful trade execution ($.05, $.125, or $.25 - after cash back - depending on membership level).
By the way, it should be clear to everyone that one of the things bytemaster built into his proposed solution is an order placement fee that varies depending on membership level. So in his example, the cost to place an order (that later gets cancelled) is $.002 for lifetime members, $.0755 for annual members, and $.201 for basic members. Personally, I think the order placement fee in this scheme is
WAY too high for basic and annual members. Ander's idea was to avoid spam (not to profit massively from orders that end up getting cancelled) and I agree with him 100%. So I think everyone should get charged the same order placement fee. Perhaps UNLESS people with lower membership levels pose more of a spam risk. In which case I would support a sliding scale, but a
much more gradual one. Perhaps $.002, $.004, and $.005. Remember, most people are not spamming, and I think charging them much more than spam deterrent fees just to place an order would be very counterproductive.
@Ander: you're the OP on this thread and it seems there is a lot of support for your original premise. What do you think about this?