RE: Proposal for SBD Liquidity Provision and Market Making (MM) Bot Development for the STEEM Ecosystem

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Proposal for SBD Liquidity Provision and Market Making (MM) Bot Development for the STEEM Ecosystem

in proposal •  19 days ago 

This is different than an outside contractor coming in doing a job and then leaving. These guys also will benefit from this and would also benefit from an increasing price of steem. Things should be built by stake holders on the platform simply to increase the value of their holdings. That being said I do think they should be paid for their development work, however, I am definitely against 100 SBD per day forever as the cost. A one time development cost and then a minimal maintenance cost seem much appropriate to me.

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I'm not even sure about funding the development cost out of the SPS. If I had enough stake to influence the proposal acceptance, I would probably want to see more details around time frames, deliverables, and quantification of expected burn estimates.

Also, as I mentioned in my reply to the top-level post, I'm thinking that the best way to handle this might be by revisiting liquidity rewards from the blockchain. Apparently, there were issues with the first iteration and liquidity rewards were "temporarily" disabled, but if the SPS is going to pay for development to enhance liquidity, I think that might be a better approach(?).

I think the team does have a good track record, but (IMO) some level of due diligence is needed before supporting a proposal of this size, and I'm concerned about permanent dependency on any specific team for this purpose.

Personally I'm growing increasingly skeptical after not getting straightforward answers to some of my questions. And aside from whether development costs should be paid for, I suspect that having a centralized bot slurping up all the arbitrage opportunities would probably be a bad thing for the ecosystem.

Yep I agree as well. I think the free market should and probably will take care of this.