Monetization of Pooltogether

[MarkOSullivan94]

I’m heavily against any monetization of $POOL right now, as I feel it goes against the original vision of PoolTogether

Over 80 billion dollars are spent on lottery tickets each year in North America alone. At the same time, 40% of Americans do not have more than $400 of cash saved. PoolTogether wants to change these economics by turning money spent into money saved. We believe this is crucial to the economic safety and well being for millions of people around the world.

How does monetizing $POOL and giving those who hold it extra financial gain help those who struggle to save $400?

In contrast, these are the kind of proposals we should really come together as a community and implement: 2% of rewards for charity

@TheRealTuna

I believe that monetization needs to happen right away to keep the momentum going. Adding revenue to the platform will only accelerate the growth. The #1 incentive to add funds into a pool is not the prize you can win, it’s the POOL you earn. If POOL rises in value it boosts the APY you are getting from being deposited in a POOL. If we monetize all POOL we are giving utility to POOL, boosting APY, and rapidly accelerating the growth of the pools.

My vision of monetization is 1-4% of the interest earned being collected as a fee on all POOLS. Maybe this revenue could be split between a treasury for future contests/projects and rewards directly to POOL holders. You would have to stake your POOL to be eligible for the rewards.

I agree with you that the #1 incentive right now for people to enter pools is to earn the $POOL token which makes me nervous for how the pools will look once the liquidity mining is over after 14 weeks and something needs to be done to help ensure there is still good prizes after the 14 weeks.

Though even if implemented, I’m not sure if increased financial gain for those entering the pools is actually going to increase the prize pool massively, there must be a point of diminishing returns where the more whales who deposit will actually act as a disincentive to deposit because you will earn less from liquidity mining and have less of a chance to win the prize from the pool.

Kind of ironic how speculators who are convinced the $POOL token will be very valuable in the future and are gambling on this bet with their money in the pools which in turn could benefit someone who has spent very little to enter.