You are viewing a single comment's thread from:

RE: $100,000 per day ongoing drainage of liquidity rewards (more than $85K hack) <- I propose three solutions

in #trading8 years ago

Thanks for the analysis. Just one question, as a NXT whale (I assume) and major contributor, will you massively dump your token to the market (unless your account/wallet got compromised)?

Sort:  

I was never a NXT whale, but I did create a large part of the NXT asset market. Not sure I understand about what token you are talking about, but generally speaking dumping is not a smart thing to do

generally speaking dumping is not a smart thing to do

So.. you assumed that I would be not smart, so would be going to significantly hurt the market price?

when it is dumped it will hurt the market price, possibly in a significant way.

it can lead directly to tens of thousands dumped on the market every day.

he hoards it all for one massive dump

I didnt mean to imply that you would dump, just that if a single person has low cost basis inventory, it is a risk factor. At least it is more risky to have a single person control all the inventory vs. it being distributed to many. this is not personal, it is a about the perception of risk. maybe you wont ever do that, but can you convince everybody of that?

I guess the question is if the market liquidity providers find self-trading acceptable or not. Since there is no technical way to prevent it, one approach is to just say, "sure self-trade is fine since it cant be prevented". Is that your position?

IMO before a well designed subsidy mechanism put in place, It's better to have most of the reward fund distributed to a few trusted parties than to random people, if have to distribute. It's some kind of risk control. You can't please everyone.

I'm neutral about self trading. IMO it's acceptable if it results in fairer liquidity.