Will Manifold subsidize trading fees?
5
Ṁ119
resolved Jun 27
Resolved
NO
Right now, market creation is (heavily) subsidized. This incentivizes people to create markets, but not to create popular markets. At the same time, there's a direct disincentive to trade. Subsidizing trading fees instead fixes some of these issues. It decreases the trading disincentive, while still providing a market-creation incentive---except now the market-creation incentive is in proportion to how popular the market is. Conceivably, in the near term, the subsidy could be quite large. I can get M$100 right now by making a totally pointless market, so the (mean? median?) size of the total trading subsidy should probably also be about M$100. This market resolves to YES if there's a positive subsidy applied when a trade is made at any point between now and the close date, regardless of how the subsidy is allocated.
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sold Ṁ1 of YES
I think this is exploitable by making a market and being heavily on it, such that I earn trading fees but don't pay them.
This sounds like a good incentive for market creation, and a great part of this balanced breakfast of replacements for the daily free markets if/when they are (hopefully) removed.
bought Ṁ5 of YES
I vote YES, of course, roughly for the reasons stated. Making a nominal bet seems appropriate. Open to arguments against, though. A key thing for me is that subsidizing trading opens the door to creators seeing much larger trading fees.

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