The difference between wBTC and renBTC has nothing to do with fee price they have higher fees than us and always have, wBTC mint and burn volume is greater than ours, this is a fact that has MORE to do with their existing integrations than their fee structure. They have been around a lot longer, and this advantage of first to market, and time on market is something that we as a network can catch up, but it is not an overnight process.
Look here, the wBTC network has faced a very similar volume pattern as renBTC in terms of volume inflows and outflows. This has nothing to do with fees, and everything to do with the DEFI yield incentives in the marketplace.
As a business, who in a boardroom would advocate to lower revenue, and increase costs. We have proven with data provided in RFC-000-013: Raising the Mint Fees to 0.3%, that we are seeing increased volume with higher fees this epoch, and given the bullishness of DEFI and the increased attention to space, do you see this trend reversing?
By lowering the fees, we will be telling all new node operators the yield they sought out is going to be half of what they were expecting. This is a bad message, does not help our network growth, and further hurts all existing operators on forgone income opportunities.
The loss we will face as a network, under this proposal is around 7BTC, or $231,000 USD, given the current volume and at least consistent future volume, if the volume is higher than we stand to lose even more as a network. This represents just over 10% of our total income earned to date.
As the proposer of this, you want to sacrifice 10% of our income, with no data to justify this decision, other than a very basic notion of supply/demand theory? THIS IS A MISTAKE.
I implore you, look at the current data, our revenue is on a great trajectory, we have more integrations coming online in the next two epochs, more volume is coming because DEFI is back in season, why toss income that is there for the taking. wBTC is charging more than us and has higher volume, this is coming from their existing integration and first-mover advantage…We will catch up, be patient in the meanwhile, we should aim to match our fees to theirs. So our REN team has the resources and income to compete.