Quote from: Dorkie on February 06, 2018, 03:49:39 AM

Quote from: azmojo on February 05, 2018, 11:55:12 PM

I don't understand why the VEADIR access fee percentage has a relationship to crypto market caps? The fees charged by hedge funds have nothing to do with the price of anything. Hedge funds charge 2% and 20% of profits. VERI's fee is just a rate the Reggie thinks is reasonable for the service VERI's platform provides. This rate should have nothing to do with the price.

Assuming I understand what you are saying, does it make sense for VERI tokens to become increasingly rare as the platform is used, as your scenario suggests? I think not.

Imagine the fee is 500%. Meaning to say you need 500 VERI for 100 ETH exposure. ASSUME the entire crypto market cap is in ETH. The total market cap now is 290 bil and ETH price is $620. That translates to 467 mil circulating supply of ETH. For the entire world to have 467 mil worth of ETH exposure, it will need 2335 mil VERI. At current supply, VERI will be in severely short supply and the price will have to go way up.

Imagine another scenario where the fee is 0.1%. Meaning to say you need 0.1 VERI for 100 ETH exposure, or 467,000 VERI for the entire 467 mil worth of ETH exposure. In this case, what use will we need for the remaining 100 mil - 467,000 = 99.533 mil of excess supply?

It does not make sense for VERI to be increasingly rare, as in going to zero. It makes sense for VERI to have low supply vs large supply, or fixed low supply vs increasingly larger supply. Even Reggie himself sometimes imply Veritaseum's market cap to be worth billions in some of his videos by taking the 100 mil supply into account. Thus Reggie indirectly imply that market cap is very relevant, despite the fact that VERI is a utility token, not securities.

Update:
As VERI can be rented out and recycled back to be resold over and over again endlessly (unlike Microsoft Windows software licenses), why do you even think the token can ever be rare as the platform is used? If it becomes so rare to the point of having no supply, then the buyers can borrow the token from us renters. If it becomes so rare to the point of having no supply, then the buyers can buy the token in bulk from Reggie that got his token back from the popular use of the platform. Why is this still very hard to be understood?

Update #2:
What I am suggesting (reducing supply) is not harmful, but instead very beneficial, to everyone (Veritaseum and token holders alike). Why do you guys hate the thing that benefits you?

Update #3:
Reggie is very scared that reducing the supply, or burning unsold tokens, will cause him to make far less money in return for his services. If that is true, then I say Reggie is very narrow-minded.

I have no problem with the price of VERI increasing of course, but accomplishing that by manipulating supply is.... not right.

Again, a hedge fund charges 2% + 20%. If the VEADIR can return 100%+ annual returns I am happy to pay any fee that amounts to 1-5% or maybe even more. That's a sustainable and healthy business model. Unlike business models like PLR. PLR is a wallet that users are going to need PLR tokens to use. But if the price of PLR goes to $100/token, who is going to pay hundreds of dollars to use a wallet no matter how fantastic it is? the more sustainable model for PLR is to keep the price to use the wallet at a few dollars. BTW, I don't think we know yet how much PLR is going to charge, I'm just setting an example.