//Sorry for the wall of text
Thanks for the insights and your efforts to publish data about the Nash League. You really did a great job!
I’ve watched about 90% of the video with the one or the other skip in some sections, but I think I got your points and can go for a good comment from my perspective towards your conclusions.
First of all I want to comment on all five points you have suggested at the end and what I have understand.
This point attacks the topic of how the price pool is split and how traders can participate in the competition. Also it clears up which type of rewards are distributed. Therefore, there will be an equal split between solo and squad from the price pool. Additionally, the prices for captains, top traders, special and P/L will be erased.
Not part of this point is how prices will be distributed in the solo section and squad section. This is part of point 2.
Here it is about how the price pools will be distributed towards the winning traders of the competition. In my view this point also covers one of the main thesis how you designed the next iteration for nash league: “traders lose money while trading and part of their losses should be covered”
Not part of this point is how the solo traders and squads are rewarded. For example who is eligible for prices.
Point 3 is about how traders can join different squads. This also covers one of your main thesis on which your version of the iteration is built up. “Traders should be able to join any squad at any time”. Additionally, it is about which traders from a squad are qualified for prices of the squad. This is determined with a dynamic threshold.
Not part of this point is how solo’s are rewarded and what threshold is necessary for them.
This part is about erasing the current levels with different volume thresholds to unlock different prices pools. Through this there isn’t a phase where trades see N/A until the first level is unlocked. Instead now in a linear function prices will be calculated and will rise through the whole competition.
As you mentioned in the video the duration of the competition doesn’t matter this is about generating a regular motivation to trade and provide traders a possibility to additionally win the one or the other price while the main competition is running. When the competition take about 4 weeks there will be 4 lotteries.
Now I want to comment on what I like about this suggestion:
- The dynamic eligibility rule, which sets the necessary threshold for qualifying for rewards
- The weekly lottery to keep traders active throughout the competition and add additional rewards
- The approach to avoid time periods, where traders don’t see their prices they would currently receive
Now the points I don’t like about this suggestion:
- The thesis “Join any squad, any time”
- The thesis “Cover loss with prices”
- Split the price pool 50:50 between solo and squads
Let me explain why I’m not a fan of those. These three are kinda married in my opinion. The first point allowing traders to “join any squad at any time” is the reason why the point “cover loss with prices” is even a big topic in my opinion.
Lets say the cloud bot squad is limited to 25 traders. With the current distribution model the top 10 traders will receive the same amount as before. But the traders from place 11 to 25 are now only sharing the rewards between 14 traders. Now the rewards would be shared with the traders from place 11 to 88 (current snapshot) which results in 77 traders. So, for each trader in the limited squad is a bigger part of the price pool available. Also with the suggested pow distribution model (which I really like!) the traders should receive their fair share.
What I also want to mention is that a big focus while distributing the prices among the squad was only the team cloudbots. I’m mean yes it would be nice if they get their prices and can cover parts of their losses, but still all the other teams like nashians or fabibis team aren’t able to cover their losses until different levels are unlocked.
So now why is also the price pool split married with those two? Well if we split the price pool 50:50 between solo and squad and I can join any squad any time I would definitely wait until the end of the competition. Then people want to win in the squad competition. Everyone is joining the winning squad. Now we have just created a second solo competition which is a mirror to the real solo competition. Therefore, traders should still decide: do they wan to participate solo or do they want to participate in a squad.
If that is the case, I would prefer to have liquidity mining instead of the nash league.
How I would iterate the competition?
- Have solo and squads split and compete only in one
- Empower the squad leaders to kick/invite traders and set a price distribution model
- Each squad/trader has its own linear rising price pool - no global price pools
- Set total exchange volumes as targets to raise the received price pools with %
- Add the weekly lottery
There are people who don’t want to be part of squads. Therefore they should be able to participate on their own.
Empowering squad leaders will lead to better squad communities and better social interacting among those squads themselves.
Having each squad or trader have their own price pools will keep them active to trade because only they can unlock the price. Now people can bet on other squads to unlock the necessary volumes.
Raising the percentage of the price pools for each squad or trader with the total volume of the exchange will still keep an shared goal between all participants of the competition.