New Commission Structure:
App Owners will receive 40% of the house edge and 10% of investor profit
Moneypot will receive 10% of the house edge and 10% of investor profit
Investors will stand to make an additional 10% (40%) of the house edge.
So the house edge used to be split 50% to app, 20% to MP, leaving 30% to investors if the actual profit matched expectation.
And now it's split 40% to app, 10% to MP, 40% (10% more than before) to investors? Where's the missing 10% going now? (40+10+40 = 90, not 100)
Did you mean to say this instead?
> Investors will stand to make an additional
20% (50%) of the house edge.
Or did I misunderstand?
I think this is how it breaks down assuming investors run at neutral ev.
App Owners: 40% house edge+10% of the 50% investor profit(5% house edge)= 45% house edge
Money Pot: 10% house edge+10% of the 50% investor profit(5% house edge)= 15% house edge
Investor: 50% house edge-20% of the 50% investor profit= 40% house edge