CCIP-025 - Algorithmic MOONs Pricing for Reddit Special Membership

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Problem

Current Special Membership (Paid in MOONs) is not being used due to the simple fact that: price is 1,000 MOONs or 5\$, no one will choose to pay 1,000 Moons - equivalent to paying ~118\$!.

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Solution

Realistic Special Membership Cost, First step is changing the price to 100 MOONs.

Admins are now allowing updates to membership pricing, but do not yet support dynamic pricing. Once Moons can support this or mods are able to change the price monthly, we will use the following:

Subscription price will be algorithmically updated each month, after snapshot day and calculated like this:

..

P * 100 / (1/R) = Membership Price in MOONs.

Where P is subscription price in USD. Membership Price in Fiat is 5\$

R = Karma/MOON Ratio , R bigger than 0

After simple operations this can be reduced it to 500 * R which is much more convenient for users to calculate.

..

For example previous month ratio was 0.233:

Final Formula: 500R

500 * 0.233 = 116.5 MOONs

..

This month ratio is 0.277 :

500 * 0.233 = 138.5 MOONs

..

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You may think that keeping 1000 MOONs per membership is better because these MOONs gets “burned”.

These MOONs are not really getting burned, instead they get reintroduced in later rounds. This is artificial and temporary scarcity, why burning 1,000 and not 10,000 MOONs? 1,000 points was the initial default price that is supposed to be changed, after a year and a half there is still no change and it’s time to do so.

On top of that, 1,000 MOONs are getting burned from the Community Tank - wallet that is not affecting the market anyway. If users start to actually buy special membership using MOONs, these MOONs get burned from users - something that have impact on the market.

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For Consideration in The Future

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submitted by /u/mellon98

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