Currently, Users can earn rewards via Shopping cashback or Staking StormX / Athens tokens.
When a user wants to Withdraw these rewards, the StormX team pays the fees for that withdrawal.
The team has a patented system for batching transactions which helps reduce the cost of these payments, which is really beneficial at keeping the costs down.
I am suggesting we have a discussion around two key ideas;
A. Limiting the amount of “Free” withdrawals a user can make.
B. Introducing a mechanism to Earn/Increase the number of free withdrawals a user can make.
1A. Limiting the free withdrawal limit to once a month. If a user wants to withdraw their available balance, They will check a box, or indicate they want a payout, and at the end of the month on a specific day, it will pay out. This means the StormX team can still batch all there transactions with there Patented system.
2A. If the user wants to withdraw before the team “does it for them”, they can pay for the gas, or pay a STMX token fee. If the fee is in STMX, then virtually everything would stay the same as it is now, but it would allow the team to have an additional revenue source. This revenue source could help refill the staking pool, or go to another fund.
1B. In this situation where the user is limited to a certain amount of withdrawals, the team could potentially allow for certain “Membership tiers” have additional free rewards.
Bronze users get 10% off Withdrawal Fees for early withdrawals (assuming the fee is in STMX)
Silver users get 1 additional free withdrawal per quarter (3 Months) + 10% Off withdrawal Fees
Gold Users also get 1 with 25% off Fees for early withdrawal
Platinum users get 1 or 2, with 40 % off Fees for early withdrawal
Diamond users get 2 to 4, with 50% off Fees for early withdrawal
Either suggestion furthers the StormX system by either ;
Increasing cashflow/Decreasing Overhead for staking.
Adding additional membership bonuses
Additional In-App and/or Smart contract complexity
Technical overhead, User experience
Funding to create this change.
Well for example when I use Nexo as a lender they have similar system in place when you use ERC-20 tokens where the amount of free withdrawals is based on your status. But in order to reduce fees they keep implementing other chains/L2 solutions where they offer always free withdrawals(like token on the MATIC network) although the NEXO token is strictly ERC-20.
So purely from an STMX perspective this makes a lot of sense but given the current market conditions where we have even fears about STMX being the custodian of your STMX/$ (and this question wasn’t only posted by me) but also this means that token sell pressure would decrease when the debit card comes out as peoples cashback paid could not be “fully realized” by selling them into a stable to reduce volatility.
This proposal is very company friendly IMO and surely for the sake of the company this would be ideal…as a user I’m having a Binance Card I don’t see a reason to switch as I get much worse conditions(personal opinion ofc).
Well L2s are being talked about by the team, but i have no idea where or when, or how willing they are.
as for the debit, the coins will be sitting on an exchange, so STMX wont be the custodian, but rather an exchange will be. so i cant address that. but coins will be sold into stables yes, so there will actually be more sell pressure I.M.O.
but to the point of this thread (your last paragraph), yes it is team focused. Personally i don’t want them to dilute us another 25% in 3 years. coming up with a sustainable avenue to replenish staking, is a good thing.
Creating more reasons for a user to upgrade membership tiers, is beneficial for all token holders.
sure, this means there is a chance we pay more or have less free things, but there is a avenue to still claim things for free. and also a avenue for the team to have less costs/replenish staking.
your point is right though, this is team/token focused.
I generally really like this proposal and I feel some part should be explored so we aim to find the middle ground between the 2 contrarian views which are customer and company/token.
The fact is that custodial topic will be something after the FTX collapse and now the potential Gemini bank run that will stick with people for a while. So IMO removing the ability to wtihdraw freely might sway people away in the forthcoming time although this ofc depends when the debit card will launch.
So to me once we have more users and this current exchange sentiment passes we should consider this again with the limits as we grow with the debit card the fees will also increase unless the team works on another L2 solution.
Also my replies here are only related to the debit card and are not related to the current model.