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Delegator Rewards Video: Sundara slashes fee from 20% to 2%. Beginning of the fee race to the bottom?


Seoulite
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4 hours ago, BillyOckham said:

I don’t understand.  Are you saying the provider reward limit of 10% is now reduced to 5%?

Is that official?

Yes, my understanding is that it automatically kicks in once the count hits 25.

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16 hours ago, Ripley said:

Hmm. Number of FTSOs is now higher than 25. Brings down peak reward rate to 5% per FTSO. Things are going to get interesting this epoch.

I haven’t heard that and we’re in close communication with Flare. Not to say it won’t happen at some point, but it’s not the case today.

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So it's interesting that once again as soon as A-FTSO went over the limit it was brought back down. It makes sense because larger holders have nothing to gain from having their rewards diluted, and for them it is likely the best strategy to spread their tokens out over a large number of providers. I wonder if this will continue though.

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Field report:

So I said I was going to do an experiment. I delegated 50% to sundara and 50% to scandinodes. I wanted to see how much difference the fee would make to the rewards. Right now sundara is running at a little less than half of the reward rate of scandinodes, and the reward rate that I am getting is basically the same ratio. As far as I can see the difference in fees is making little difference.

Maybe this is because I am operating at small levels so it doesn't really matter that much. Maybe the difference in reward rates is clouding the issue, because it seems that delegating to the highest reward rate will more than make up for differences in fees. In fact it's not even close.

Maybe when the reward rates get closer and more competitive then fees will make more of a difference, but from my one week experiment I can't see much. 

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1 hour ago, Seoulite said:

Maybe when the reward rates get closer and more competitive then fees will make more of a difference, but from my one week experiment I can't see much.

Looking at the fees from a different perspective (mine) ... I notice Sun Dara's VP for Epoch 4 is 49,500,609.

His overall is now 49,142,148, so he's lost ~350k in VP despite having the lowest fees, by far.

Dropping his fees to an unsustainable level hasn't attracted the masses, whether or not that was his goal I don't know. I saw his note about thanking early delegators, but it appears they haven't reciprocated. 

The expectation providers will start slashing prices to attract voters is high, but as I expected, it's not necessarily a winning formula.

Delegators are flocking to A-FTSO, with good reason, his results are a cut above the rest. 

The only way to attract voters away from Alex is to earn our delegators better rewards, slashing fees won't be enough.

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2 hours ago, Seoulite said:

I was just interested to see how much difference the fees made in the calculation and my conclusion right now is not that much. 

We're all learning, us included. My feel at the moment is changes won't be as dynamic as I first thought. It will take a lot longer for vote power to swing either way. Any big changes too VP at the moment are likely investors or at least corporate tokens. 

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