RE: Announcement - New buyback system coming soon

You are viewing a single comment's thread from:

Announcement - New buyback system coming soon

in holybread •  5 years ago 

In reply to my comment under your last post, you asked for my opinion regarding the new buyback system, so here it is.

At first, what I like about the new system and why.
1) Daily exchange possibility from Breadcrumbs to Steem
2) Exchange without "the middle man" (SE)
Only this would not just help users unfamiliar with Steem Engine or maybe even with trading on such platforms but above all, by that extra charges in the form of existing (although very small) transaction fees from SE account to Steem Wallet or vice versa will be cut out. For gaming purposes only, it was something completely unnecessary, especially on Steem blockchain, where all the transactions are absolutely free of charge.

What I'm not thrilled about is that this new buyback system "formula" has some crucial mathematical unknowns, entirely unwanted for my taste, and they are the next ones.

1) A daily amount of Steem that is going to be exchanged for the Breadcrumbs in a daily pool.
Assuming that you want to keep the same ratio as it was by now (20% of the total prize pool per week), my guesswork logic would be that this 20% would be divided by 7.
So, if we today have about 5,000 Steem in the prize pool, 20% of it would be 1,000 Steem (per week), which divided by 7 would make something less than 143 Steem per day available for the exchange of daily pool.
But we don't know if that's so or not, did you have the same logic and idea or maybe something entirely different.

2) What would be the price of Breadcrumbs?
The way how it's explained in this post, my guesswork logic understands it the following way. I'll give (as I'm calling it) a plastic example for better understanding.

Let's say that John, Sally, Mark, David, and Suzy will decide each day to sell the same amount (portion) of their daily Breadcrumbs earning in the game. So, for Monday and Tuesday, their exchanges might end up as shown in the following table.

Player

HBC

%

Steem

John
100,000
52.63%
75.261
Sally
50,000
26.32%
37.638
Mark
25,000
13.16%
18.819
David
10,000
5.26%
7.522
Suzy
5,000
2.63%
3.761
Total:
190,000
100%
143.001

But what would happen on Wednesday when to the above five players join Alan and Steven?! Alan has been intrigued by Suzy's story of how she managed to exchange her 5,000 HBC for 3.761 Steem while Steven is one of the top 10 players who decided to sell at once most of his last week Breadcrumbs earnings.
In that case, the table of payouts would look like this.

Player

HBC

%

Steem

John
100,000
2.38%
3.403
Sally
50,000
1.19%
1.702
Mark
25,000
0.60%
0.858
David
10,000
0.24%
0.343
Suzy
5,000
0.12%
0.172
Alan
5,000
0.12%
0.172
Steven
4,000,000
95.35%
136.350
Total:
4,195,000
100%
143.000

So if, as shown through the above tables, my guesswork logic is correct, I can not but noticed that we are, although in a different way and without being caused by some market speculators, but still back again in some gambling business what you have emphasized that you don't like in the current system.

The way I see it, in this new system, the players who wants to sell their Breadcrumbs through daily buyback would be, in fact, some sort of the "lottery buyers" who will have to guess correctly and pick the right day in which top players will not exchange their enormous daily amounts of Breadcrumbs, not to win the jackpot but to win anything jut a bit more substantial eventually.

In short, without fixing the buyback exchange rate price for Breadcrumbs, I don't see how you may avoid that gambling issue at all.

However, that's my two cents on the subject.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!