There’s been a lot of discussion in Discord regarding the future of raffles and I wanted to carry things over here for better documentation.
AGIP 40 was voted on to sunset FRENS under the notion that GLTR is our new staking reward. However, we have not yet determined how we will be doing raffles henceforth.
Coderdan has stated a number of times they are not interested in phasing out raffle tickets for a number of reasons but mainly due the AFK members of the gotchigang returning months later only to discover their tickets are now worthless. It is not the most elegant solution.
The best solution presented so far is to allow users to purchase tickets for GLTR. This brings up a few things to discuss:
- What is the conversion rate for GLTR/tickets?
- Is the conversion rate determined once and forever or is this something that would be updated monthly/quarterly/etc. as GLTR is a hyper inflationary token.
- What do we do about the upcoming raffle? There’s been quite a bit of volume on tickets already in the bazaar. Is it fair to drop a new mechanic which will dramatically increase supply, potentially rugging those who are buying ahead?
- Do we create a mechanic where drop tickets can be reverted into other tickets?
I did some quick math here and you can see there is significant imbalance in market prices. Back when we had raffles regularly and FRENS were emitting, the price ratio on tickets was generally pretty balanced. However, today that is not the case. For example, myth and drop tickets cost the same in FRENS but mythical tickets are selling at over 100% premium.
My thoughts on the points above:
Let’s not introduce a new GLTR mechanic until after the upcoming raffle. Afterwards, let’s set the ticket prices to the FRENS ratio pegged to that time’s GLTR price. Set a schedule for the FTF to change the price of tickets every quarter. The new price is adjusted based off of the original price point. That would look something like this:
Let’s say in a few months when the prices are set, GLTR is now $0.0000047. Going off of the current common ticket price, you get nice numbers like this:
Now the initial prices and ratios are set. In the future, when the FTF recalculates things, let’s say GLTR is now $0.000004. This makes tickets now more expensive, like this.
Of course, if GLTR appreciates, then tickets become cheaper, relative to GLTR.
These are just my initial thoughts. I look forward to a passionate discussion!