Am I the only one that thinks referral system is Bitshares largest mistake ever?

[fav]

I love the referral system. It is truly innovative in the cryptocurrency space and will help Bitshares grow via magnified network effects.

I do have a question about how it works though. Is is multi-level or single level?

If I refer someone I get a portion of their fees, I get that. What if they in turn refer someone? Then that someone refers someone else?

Is a MLM affiliate scheme better than a single level affiliate scheme? I have my own opinion, but I am interested in hearing everyone else's. I am thinking I may be in the minority on this... pro MLM. MLM structures promote users to recruit other users that will then recruit other users, and so on so forth. Magnifying the network affect of the referral system is in our best interest IMO. How many levels deep should it go, or should it ideally be unlimited down to a fraction of a percent?

it's single level, so no MLM.

[CoinHoarder]

I love the referral system. It is truly innovative in the cryptocurrency space and will help Bitshares grow via magnified network effects.

I do have a question about how it works though. Is is multi-level or single level?

If I refer someone I get a portion of their fees, I get that. What if they in turn refer someone? Then that someone refers someone else?

Is a MLM affiliate scheme better than a single level affiliate scheme? I have my own opinion, but I am interested in hearing everyone else's. I am thinking I may be in the minority on this... pro MLM. MLM structures promote users to recruit other users that will then recruit other users, and so on so forth. Recruiting mainly other users that will recruit other users is currently in the best interest of Bitshares as we are very early in the game. Magnifying the network affect of the referral system is in our best interest IMO. How many levels deep should it go, or should it ideally be unlimited down to a fraction of a percent?

[btcwagering]

While obviously polarizing, I think the referral system is brilliant because you're giving people a business opportunity while simultaneously growing the network. At the very least it's worth a try.

I particularly like the analogy to PayPal, but has anyone else noticed that the actual way PayPal bootstrapped growth is being misremembered?

It wasn't primarily about the referral program, it was the fact that you got $10 free PayPal dollars when you opened an account. What would it take for Bitshares to do this? Obviously you'd have to protect against gaming the system somehow, possibly by *gasp* identity verification.

Obviously the other problem facing the referral system right now is that there isn't a clear use case for joining the network (yet).

Anyways kudos to the team for getting this thing shipped, but let's get it straight about PayPal: the free cash to join is what got things moving.

[bytemaster]

The order execution fees are set by the issuer of the respective assets (not by the blockchain)
The order cancelation fee is 0
The order placing fee is 5 BTS for normal users and 1 BTS for lifetime users.

1 BTS is $0.004 right now.  It is just big enough to prevent users from spamming the blockchain.

[Methodise]

There is some wisdom in this entirely optional massive discount being offered to anyone who calculates that it suits them. It's a loyalty scheme, not a hostage scheme.

I also think xiahui135 might have a point about differing fees for order cancellation, successful trade, transfer etc.

[Pheonike]

Either way it's best to start high then go lower than start too low and deal with PR from raising it later.

[Method-X]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

In the US Scottrade is seen as a bargain basement trading firm at $7 per trade!! Seriously. Other houses charge $25+ USD PER TRADE!!. Let's get some perspective on what the market will bear.

To put it in context most US trading companies charge between 1500 - 5000 BTS per trade.

Yeah I definitely agree. My bank charges about $20 CAD per trade, which is ridiculous.

[carpet ride]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

In the US Scottrade is seen as a bargain basement trading firm at $7 per trade!! Seriously. Other houses charge $25+ USD PER TRADE!!. Let's get some perspective on what the market will bear.

To put it in context most US trading companies charge between 1500 - 5000 BTS per trade.

That's for average joes tho.... What is the Nasdaq trading fee for a company directly plugged into their APIs? It might be a few cents at most.

Makes me want to ask........who is more important to BTS... guys going through brokers or institutional traders?

[fuzzy]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

In the US Scottrade is seen as a bargain basement trading firm at $7 per trade!! Seriously. Other houses charge $25+ USD PER TRADE!!. Let's get some perspective on what the market will bear.

To put it in context most US trading companies charge between 1500 - 5000 BTS per trade.

Yeh but what method is talking about is changing the perception to users...especially with consideration to the demographic.  Ironically he came to the same conclusion i did...now if only i hadnt missed his previous post...lol.

Method-x has the right of it. I only meant to highlight the absurdity of the debate over fees vs the "real" world.

Yeh, definitely...

[Riverhead]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

In the US Scottrade is seen as a bargain basement trading firm at $7 per trade!! Seriously. Other houses charge $25+ USD PER TRADE!!. Let's get some perspective on what the market will bear.

To put it in context most US trading companies charge between 1500 - 5000 BTS per trade.

Yeh but what method is talking about is changing the perception to users...especially with consideration to the demographic.  Ironically he came to the same conclusion i did...now if only i hadnt missed his previous post...lol.

Method-x has the right of it. I only meant to highlight the absurdity of the debate over fees vs the "real" world.

[fuzzy]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

In the US Scottrade is seen as a bargain basement trading firm at $7 per trade!! Seriously. Other houses charge $25+ USD PER TRADE!!. Let's get some perspective on what the market will bear.

To put it in context most US trading companies charge between 1500 - 5000 BTS per trade.

Yeh but what method is talking about is changing the perception to users...especially with consideration to the demographic.  Ironically he came to the same conclusion i did...now if only i hadnt missed his previous post...lol.

[Riverhead]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

In the US Scottrade is seen as a bargain basement trading firm at $7 per trade!! Seriously. Other houses charge $25+ USD PER TRADE!!. Let's get some perspective on what the market will bear.

To put it in context most US trading companies charge between 1500 - 5000 BTS per trade.

[fuzzy]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Maybe they should pay the fee in bitUSD or another bitAsset...and be forced to have SOME of it in their account.  Skype does it...and so do many others...and that seems to work.  Once people see that it is framed differently, their perspective will change...

Seeing $.1 bUSD as opposed to 20bts looks a heck of alot cheaper.

[Method-X]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day 

Can fees be displayed as USD? Seeing something like 5 cents has a much lower perceived value than 20 BTS.

[Tuck Fheman]

When the outside world looks at this thing, they don't even know the fee rate can be changed over time, so they're thinking, "nice, if this coin hits 3 billion market cap like Bitcoin, I get to pay $15 in fees per transaction!

had the same thought the other day