Ethereum has been a breeding place for wealth redistribution games. Some come in simpel forms and scams others have more depth.
Token based wealth redistribution
P3D is in this category the most succesfull and most cloned one. For those who don't know it. It is a token where there is a 10% buy and a 10% sell tax built in the contract. these taxes are then given to all the token holders as dividends. The token value is bonded to the amount of eth in the contract. The more tokens in existence , the more eth is in contract and the more value each token holds upon selling it at that spot value.
PRO's:
- Big initial slope of token value increase can create big hype as well as the divs generated from a hype cycle.
- Reinvesting increases your holdings and increases the tokenprice which gives your tokens more theoretical value per token.
- Your tokens don't burn unless you sell them meaning you have a never ending win cycle of divs for all volume generated.
- New projects plugged into the token ecosystem can create new hype.
- Proven hackerproof
CON'S
- After hype fase when more people sell than buy tokens the dividends received does not match the amount of value lost in tokenprice.
- For people to win, someone has to lose and sell tokens without having roi (weak hands)
- In times of stagnation there is not knowing wether you'll ever roi due to the fact that if people mostly sell after you roi the tokenprice decreases more then you receive in divs.
- Volume inhibitting effect due to the taxes set.
- Locks up eth.
- Big early investor advantage.
Interpretation
Passive income has always been something people like to chase, now with the p3d token it's there for the taking at the push of a buy button. The great thing about it is the run up. People get in, divs are paid, token value increases, people can chose to take profit by selling them causing more divs to happen, as long as there are more buys than there are sells, all is good and p3d-kind is happy. The dark side is however when a firm bear trend sets in. The loss of value does not compensate the smaller handout in divs. This will in turn scare new investors to put in eth because they don't know when the next run up is going to hit or if there is going to be one at all or if the divs they receive will compensate the losses.
My main take on this is that there always needs to be incentive for uptrend, as in, new eth flowing in will cause uptrend and fomo to get in inspiring the uptrend hype. Most easily achieved by plugging in new games into it's ecosystem by the original creaters of the project.
Overcoming the the hurdles
Since the uptrend is the most exciting and awesome part of it, why not create something that takes what worked for p3d, look at what could be improved and create something that attempts to overcome these hurdles.
Try to gear into a setting where we've got people who won and people who wait till they won, try to not have any losers. The way I think we can achieve this is to make sure it is attractive to get in at any time. If we have a situation without taxes, dapps could just buy the asset without losing direct value. The only concern being it is reliant on new eth coming in. So when you plug in each new system to buy these bonds you are creating safety by numbers. If everything keeps getting plugged in using the same contract and system there will always be eth flowing in and more eth coming out for you as an investor or dapp, this way you can beat the zero sum game and give your players back more then they put into it.
If you like where this is headed come join us at the profit line inc discord channel:
https://discord.gg/vCAbvHz