How will market creation costs work in a month?
15
554
Ṁ869resolved Jun 4
1D
1W
1M
ALL
3%
Exactly as today (flexible subsidy, M$ 10 minimum, liquidity pool returns to creator)
15%
Fixed to M$ 100, liquidity pool is burned
2%
flexible liquidity, returns to provider, increases traffic
0.0%
Minimum of M$ 100, liquidity pool is burned
35%
As today but with increased minimum
10%
Market Creation is Free, Market Visibility & Liquidity are solved using different mechanisms
32%
One free market a day
Today, market creators choose a subsidy at market creation time, to inject liquidity into the system. However, "liquidity" is a super weird and hard-to-grok concept; and deciding how much to put in is basically black magic.
Stephen has a proposal for fixing the market creation cost to M$ 100: https://manifoldmarkets.notion.site/Proposal-Fixed-market-creation-cost-caeafb62e2ca4275bcac851d52219670
This market will resolve to the answer(s) that most closely describes the state of market creation as of market closing time.
Get Ṁ200 play money
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Bets by unique accounts could be matched quadratically with subsidies from the central bank. The most popular markets get the most subsidies. It isn't immune to groups of sock puppets but we probably won't have to deal with that any time soon.
You could also add a guarantee option: market creation is free iff it attracts enough betting, if not you will have to pay the fee. Like a minimum prize pool in poker tournaments.
Market payout would the same as N/A till there is enough liquidity? i.e. some sort of quarantine state till there is enough. Liquidity could be added by Creator/Participant by betting, or upvoting (M$10 each fronted by Manifold?), or contributing to its visibility auction, or directly subsidizing the market etc.
Mainly, this option decouples market creation from all the different possible mechanisms for adding liquidity; so as to not discourage or constrain market creation (1 per day) and engagement. It is often a small percentage of users that drive engagement by creating many good questions; and one wouldn't want to tax or limit them too heavily?
Similarly, engaged users would be responsible for bringing markets into an active state, like people on reddit who browse 'New'. Kind of what already happens organically on Manifold I think.
Hm, so in this proposal for having market creation be "free", does that mean Manifold fronts the liquidity costs for the market? The main problem of that is it would function as a money pump (Alice could create a market, trade to take the liquidity, and then resolve it)
We've been thinking instead of 1 free market a day; still a pump, but much less of one. Would also encourage daily login ala toothbrush test -- we could even pay a bonus (eg M$ 100 for creating your first market each day)
- Auction off Market Visibility
- Creator & Participants can add to the bid
- Use bid amount for liquidity
- Set default bid price to some percentile of existing bids (median?)
- Bid price will of course fluctuate based on competition, but that's a good thing?
Related Market here: https://manifold.markets/hawkebia/will-manifold-auction-off-the-top-m
It feels like the higher fee (and if I understand correctly, the higher risk of loosing some of your ANTE) would disincentivize the creation of markets compared to the status quo. This can't be beneficial for the growth of the platform or for the average user like me, who likes to bet his fun bucks on varied and interesting questions imo. The currently created markets are already pretty limited in their topics. It doesn't seem to have much benefits either other than a bit of simplification.
Please correct me, if I'm wrong.
Reflecting https://manifoldmarkets.notion.site/Proposal-Fixed-market-creation-cost-caeafb62e2ca4275bcac851d52219670 as of 2022-04-05
- Instead of users choosing the amount to put up when they create a market, it’s always fixed at M$100.
- This amount is described to the user as a “market creation fee” instead of a subsidy or ante.
- Market creators do not receive the remnants of the liquidity pool after resolution.
- Anything left in the liquidity pool is burned.
- No platform fee is levied on trades.
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