Good day @Anton,
Near the end of Nash League: Season 1, a post was started to collect feedback for Season 2. I don’t see a Season 3 feedback post so I wanted to know if a new season will be coming any time soon?
I traded a small amount last season (>$500K), and I opted to leave some of my bots on despite the absence of a new league to further tests some additional algorithms. Can you provide some insight if incentivized trading will remain ($USDC bonus is a great draw).
Hi @algorithmicdesign and all readers,
I believe you all are aware of the roadmap and strategy change. That being said, it’s not in Nash’s 2021 strategy to continue the league. First 2 seasons showed great determination of community members but it was also obvious that a month of trading is taking a toll on everybody. Just like any major sport events, it’s better to run it on a yearly basis rather than from month to month.
Once a new competition is planned, the team will announce it.
I could understand if they decide to not do another competition if it doesn’t fit the new strategy. However, I am not certain if the new strategy means a competition could not still be beneficial. The exchange is still a vital part of the Nash platform. But I would understand this reasoning for not having another one.
What I do not see as valid reasoning is that it is taking a toll on everybody. You can simply decide not to join a season or two and then join again when you feel ready again. Everyone can decide this for themselves, it’s no reason to not run a competition in my eyes.
Our existing exchange has an important function in enabling low fees for fiat ramps and Nash Link. We will increase liquidity for major pairs while targeting professional traders incentivised by NEX staking rewards, low fees and advanced security.
I know there is no mention of Nash League, but the latter portion of this segment stands out. Incentivized trading is ubiquitous, and should be an exchange feature to attract traders. Again, I am not professional by any means, but I was looking forward to increasing my base capital for trading as a means to contribute to the platform with meager loss/profits being offset with $USDC incentives.
Going by their reward rate $1 per $1000 (before proportional allocation per trader) it seemed like a fair trade-off to grow their trading userbase wanting to trade their main assets. Anyhow, I suppose whatever updates we may hear on future leagues will come after this week’s partnership announcement from Kellogg.
~30M unstaked NEX (calculations here will assume that share of revenue from all 30M of these NEX go to the company) Disclaimer: rough math
Let’s assume 2M USD daily volume on the exchange during Nash League and $500K otherwise (difference of $1.5M volume per day).
365 days / 12 months = 30.42 days per month x 1.5M = $45.63M extra volume in a Nash League month compared to a non-Nash League month.
Revenue on $45.63M with 30M NEX = $45,144 USD (thank you stakingnex.io)
USD cost (prizes) for $70M in volume during Nash League = $70K USD (I am not sure if the 4000 NEX for Rookies ~ $4000 USD is included in the $70K payouts or not, if not, ~$74,000 USD)
Net revenue: $45144 - $74000 = -$28856
So the question is, is it worthwhile for Nash to continue to run the League at a loss? It would be interesting to see how many new users were onboarded during Season 2 but we cannot really blame Nash if they feel that the League is no longer worth the effort.
I haven’t really checked the math but there’s more than that…
the competition makes sense only if there’s demand, willingness to trade and overall positivity. Several traders from Season 1 haven’t contributed in Season 2 and that trend was obvious. We would have seen less and less community traders. Those that matter.
Plus there’s always time needed from the team to focus on the exchange, fixes and everything but that focus is now needed somewhere else - the new roadmap. Let’s accept the decision and look forward to future updates and competitions.
It is a known fact by now that the community it more HODL than trade community.
Maybe in a year from now when all roadmap bullets would be in place, it would be logical to continue this competition, when new users will join because of those killer services that would also add to a bigger liquidity books.
That the team decided to discontinue Nash League is speculation though. I haven’t seen any word about it from the team, so I will wait for that.
Or do you know more than the rest of us?
Your calculation is wrong. Nash gets revenue from 30M unstaked Nex but also a minimum of 25% of each Nex that is staked. I say “the minimum” of 25% because not all staked Nex is staked for 2 years.
hey guys,
give me a day or two for the official announcement! Thanks!
Yeah good point. The whole analysis was pretty rough tbh. Nevertheless, it’s probably safe to assume that Nash was not benefitting financially from the increased ME volume during Nash League seasons and was likely justifying those losses based on the long-term value in onboarding new users.
Exactly. As long as Nash has a steady growth of users of its L2 exchange it makes sense to introduce new NL seasons. When wallet trading volume picks up maybe there will be a more substantial change of the rules or an all new incentive program.
The good news is that the Nash League will continue for Season 3 with the same incentives, starting on the 9th of March:
Fabio Canesin stated (I am paraphrasing) that the Nash League basically pays for itself, so I would consider it something that will remain in effect for quite some time.
Considering how during season 3 we will also have the MPC wallet trading, will this trading volume merge with L2 trading when calculating the total volume per user?