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
Oh yes, that makes sense.
So the expected total commission has dropped from 70% (50+20) to 60% (45+15).
I hadn't realized before that you can't calculate the expected commission by simply summing the 'on house edge' and 'on profit' percentages.
For example, BetKing used to take 25% up front (on the house edge) and another 25% of the actual profits. I always assumed that represented a 50% expected commission (25+25), but now it seems like it was 'only' 25 + (0.75*25) = 43.75%. Do I have it right now?
This is how we believe the math works out. We asked Ryan to assist us with the math and he believes this is correct as well.
The commission of investor profit will work much like other sites where if there is no profit, no commission will be made at that time.
Like Ranlo stated before, this is a move with the long term in mind.
We don't plan to go anywhere, and we want to show that we are fully committed to our product and believe in it. It will be much more than just a gaming wallet.
While we didn't need to credit any investors, we wanted to. There's no hiding the fact that the investor profit has dropped significantly over the last few months (it's started to rise again a bit in the last week). Over the last year, there are a lot of things that we honestly could have done better and we are taking action now to try and re-balance things even if it means giving up a significant amount of bitcoin out of pocket to do so.
We want to try and establish ourselves as a company that tries to do right by everyone, listen, observe, and adjust as necessary.
We see the big picture and it is bright. In our minds, this type of 'insurance policy' to make sure that we are able to easier reach where we want to be is more than worth it.
Well as a former investor (and maybe future?) I definitely appreciate your actions (even if I don't like getting attacked by Acoin every time I utter a single critical word). Still looking forward to v2 and Rubies!