This is why dilution fees can be a good idea. Dilution fees would have at least spread some to the existing investors who got crushed and then had their shares reduced by the further investments.
I've been looking at the dilution fees again - and honestly, the data from the last few months shows that profit from the dilution fee would be really minimal (even negligible), while on the other hand it might stop some investors from playing, which could hurt long-term investors even more. I've seen many investors closing their investments, playing a bit and re-opening again. This is not rare and in the past it boosted site performance quite a lot - yes, some of them lost.
So in the end I am leaning towards the opinion that the dilution fee would penalize the investors who divest to play, while it would not provide enough profit for long-term investors to justify it.
This week Scott and me will discuss the commission model and if it can be improved, especially given the recent profit volatility and loses.
Cheers,
Ethan