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.