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@w-g
this am reflecting on a pivot to Dutch auction which imo has good durability properties and apparently may even improve revenue prospects; https://www.sciencedirect.com/science/article/abs/pii/S0022053122001351 https://www.sciencedirect.com/science/article/pii/S0022053120300685
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the design qs(afaict) - What price decay curve serves dao culturally (maintaining the soft 24-hr peg (šŸ„µšŸ™ƒ)), economically - does the loss of FPA mechanics (esp bidding wars, afaict) create any negative externalities (impact on noc)
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Spencer Perkins
@spencerperkins.eth
A few downsides: * requires setting a price ceiling, and floor * less exciting and interactive, which I think adds value to Nouns auction (sitting there outbidding others) * Less deterministic auction timing/length
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Spencer Perkins
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And itā€™s just not as simple or intuitive. There is beauty in simplicity, especially for new users. I think Nouns has done a great job at keeping things simple.
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isnā€™t simplicity to some degree a function of ux? Also what is the material loss if revenue is higher and whales are disadvantaged? Meaning if more unique/new people are getting Nouns and the DAO is raising more capital , how do we measure what is lost
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Spencer Perkins
@spencerperkins.eth
Simplicity is function of UX, but UX is constrained by the underlying mechanism. New/unique people + higher auction revenue are of course desired I could see how dutch auction might increase revenue. But, not seeing how it disadvantages whales and attracts more new/unique people, would think it would do the opposite?
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afaict Dutch surfaces max bid information more quickly in more scenarios which hurts accumulators who, under FPA, can potentially keep this information secret while still carrying out a buying mandate. ie in any scenario where a single actor has a limit bid for >1 noun, and is the highest bid in mkt, Dutch outperforms
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Spencer Perkins
@spencerperkins.eth
Revenue could be more with DA, but at the cost of entertainment and engagement (assuming this tradeoff doesn't drive prices down). With FPA, 24hr from the starts it will be exciting, this is highly deterministic, I know when to tune in and watch šŸæ. Dutch auction could be over in 6hr (as soon as the first bid).
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Spencer Perkins
@spencerperkins.eth
I think we are looking from 2 different perspectives. Yours leaning more economical, and mine leaning more cultural and meme value. Tbh, if Nouns was a DA, we probably would have never bought one, the current FPA is fun!
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canā€™t argue with that! (FPA being a precondition for you) but am not thinking exclusively economically, fwiw. Auction may be more fun for you if you get a good price and arguably more fun for dao if it receives a high price. eg cheap nouns going to arbers is not much fun. Chaos around settle time is attractive to me
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still, I think these are valid concerns. I wonder if there is an elegant way to have the best of both worlds. For example, a DA where a dynamic reserve bid (eg either BV or simply the previous dayā€™s auction) triggers a FPA for remaining time. This way, we preserve bidding wars and minimize drain & agglomeration
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one more point on this; personally I agree with you that DA is discouraging as a consumer- the point of linked articles (as well as, for example, Real Estate markets in high demand areas that use ā€˜strategic pricingā€™) is that forcing everyone to declare their max bid seems to result in higher prices/more allure etc
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