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Echelon AssemblyEchelon Assemblyby0x840211d78A685af748c5b7C9A82ddF995cc2d04Cechelonassembly.eth

Distribution of Royalties of Masterpieces Changed [TIER 3]

Voting ended over 3 years agoSucceeded

QUOROM REQUIREMENT: 42,708

OVERVIEW Right now each MP got separate pool and gets 1/5 of 5% of royalties for trades of matching playable cards. This pool (let’s call it individual pool) would still remain but gains would lower to 1/50 to 1/10 of 5% of matching playable cards. Remaining 1/10 to 1/50 of 5% would go to new pool (let’s call it collective pool) which would be shared among all MPs (so all Mps contribute to this pools) and rewards would be split evenly among all (cashed) MPs. This would flatten the extreme incomes - MP with the highest income would still have it the highets but closer to MP with the lowest income (which would have it higher by that amount but still the lowest). And MP with average income would keep it the same.

APPROACH Exact split into 2 pools would be a final decision of EPs - based on calculations of Echelon's appointed financial analysts. This proposal only sets minimum split to collective pool to 10% and maximum to 50% of 1/5 of 5% of royalties for trades of matching playable cards.

RATIONALE Positive effect Lowering risk for investors - right now it’s not possible to tell how much would a given card be traded (we don’t know meta builds and those will change in time anyway), therefore making revenue projections is very hard. Lowering the risk should result in higher demand for MPs. Also from investor point of view, lower risk (even excluding higher demand effect) would increase value of given cards. Collateral effect Eventually all MPs should stop generate income in future when the playable card is completly out of builds with no demand from players. With this proposal income would still decrease but it will be (kinda) logarithmic decrease, never reaching 0 because of the income from new MPs from new expansions - perpetual income. This means that old MPs would “parasite” on newer MPs (with all price implications on both sides). This effect will deffinitely increase value of current MPs but decrease of new ones in the future. However total sum of increased/decreased value may be possitive purely due to psychological factor of never-ending income. This statement is highly discussable because it’s not true for investors who valuate MPs based on NPV calculations.

TIMELINE Overall time requirement is low. Also this proposal affects only masterpieces and nothing else so it's impact is very limtted therefore relatively quickly applicable.

COSTS Few man-days of analysts and few man-days for development.

Off-Chain Vote

For
8.41K VOTE40.4%
Against
12.42K VOTE59.6%
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Discussion

Echelon AssemblyDistribution of Royalties of Masterpieces Changed [TIER 3]

Timeline

Sep 19, 2022Proposal created
Sep 19, 2022Proposal vote started
Sep 27, 2022Proposal vote ended
Oct 11, 2024Proposal updated