Solid post, thank you. …buuuuut, what if we look at this from another POV, from absolute numbers perspective?
Ignoring price elasticity, the difference between now and with $5 min cap is 1705 - 542 = $1163 or roughly $68.4 per day for the whole protocol. That’s a $25 000 increase for the protocol’s bottomline.
What happens when we 5x our $ volume (let’s not forget, this is a slow epoch!)? That’s extra $125 000 for the protocol. What if we 10x our volume? $250 000. Scaling.
With increased adoption and development of low-cost blockchains like Solana we’re bound to see more newcomers with smaller bankrolls and this implementation will be even more important.
…or let’s consider community fund. 10% from $125 000 (5x $ volume scenario), that’s extra $12 500 just for the community fund. Or $25 000 if we play with 10x volume scenario.
Should a business disregard such increase to it’s bottom line? No.
Do we need to prioritize this (if it’s hard to implement) over host 2 host, integrations, enclaves and other priority development? I don’t think so.
Will the dev salary and time investment in this implementation pay for itself? Definitely.
The fee structure can be discussed, sure. Though first I’d want to learn more on the tech side of this proposal…