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Danica Swanson
@danicaswanson
Moxiesplaining Journal Day 24: Selling Fan Tokens What happens when people sell Fan Tokens? I haven’t sold any yet, and don’t plan to for quite awhile. I plan to lock when Moxie Power launches. But selling is the only way to realize gains, so I imagine most people will sell some of their holdings sooner or later. When that time comes, what factors affect the outcome? A few that come to mind: - every token sold slightly reduces the price for the next buyer/seller - 5% fee (2.5% burned; 2.5% to the Fan Token entity) - taxation (e.g., cost basis and capital gains tax on profits) - slippage (how to estimate?) In some cases it looks like sellers end up with a loss when they were (presumably) hoping to profit. Even after reviewing the docs I still feel unclear on what people end up with when they sell, so I'm hoping to learn in public. Thoughts...? (NFA, of course). (Moxiesplaining Journal is a daily window into my observations, learnings, and the view of Moxie from where I sit as a writer + editor).
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TaylorWebb.eth
@taylorwebb.eth
Yep, sellers would end up with a loss if the FT isn't worth 5% or more than what they bought it for. IMO, this fee is a positive overall for the ecosystem as it discourages short term speculative behavior. Traders looking to speculate on FTs on short time horizons are going to have a really tough time. I think this is a great thing as the whole crypto space needs to become more long term focused. I think I also remember hearing that the Moxie team was planning on making the 5% fee adjustable by the FT subject, but don't see anything on the docs about this. Anyone know if I'm remembering that correctly? cc @tokenstaker.eth
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antaur
@antaur.eth
hell yes to more long-term thinking. intending to lock much of my FT especially the farcaster network.
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Danica Swanson
@danicaswanson
Thanks. That makes sense, and I'm on the same page about the way the fee discourages short-term speculation. I'm wondering: when making selling decisions, how do people think about the fact that every token they sell will reduce the price slightly for the next one they sell? If they're selling several tokens at once, that will result in a lower profit for each additional Fan Token they sell at the same time, if I'm understanding the process correctly.
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