SPS Governance Proposal - Adjust Listing Fees

The purpose of this proposal is to attempt to make the Splinterlands marketplace more sustainable by reducing low value transactions and offsetting network expenses. After the previous proposal to raise the rental floor to 1 DEC passed and was rejected by the team, I spoke to Matt to make sure that this proposal would be implemented if it were to pass.

Proposal

UPDATE 10/22/24
Based on feedback from the comments, I'm making the following change to this draft proposal:

If this proposal passes the listing fee for cards on the marketplace, both for sale and rental, will increase from 1 DEC to 5 DEC. The 5 DEC will be burned. This should help limit the aggressive repricing which increases infrastructure costs.

If this proposal passes the listing fee for cards on the marketplace, both for sale and rental, will increase from 1 DEC to 10 DEC. 5 of the DEC will be burned while 5 of the DEC will be sent to the Splinterlands team.

Notes:

This proposal was discussed as an alternative to another community suggested proposal which aimed to increase the market fee to 10% and to have 6% of all market sales go to the company for hosting the marketplace. There is another ongoing proposal that aims to make the market more sustainable in a different way. It is possible to pass both proposals and implement all changes or to pass neither.

Pros:

• Reduce transaction spam by increasing the cost of automated repricing.
• Burn 5 DEC and pay the company 5 DEC for each market listing.
• Make the marketplace more sustainable without increasing the overall market fee (currently 6%).

Cons:

• Listing fee goes up from 1 DEC to 5 DEC.
• Using automated services with aggressive repricing parameters costs more.

Neutral:

• Rentals still exist in perpetuity as long as they are rented once every 60 days for only one listing fee. Unless a card owner closes a listing to reprice a rental, they will likely pay no listing fee. This is good for card owners looking to rent at a fixed rate long-term but also means that floor rentals still tax the servers for essentially no fee.