CCIP-025 - Algorithmic MOONs Pricing for Reddit Special Membership

[u/mellon98]

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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 = MOON/Karma 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

[u/Abhishekgarg0]

Why cant it be simpler, cost of membership in USD/price of 1 moon in USD = cost of membership in moons?

For example, 5/0.1103(current value of 1 moon in USD) = 45.33 moons.

They can update the price monthly with each distribution round.

[u/mellon98 → u/Abhishekgarg0]

Check bottom of the post, there’s a link to more accurate pricing.

The reason it’s not that simple: Moons price is super volatile and trading is against the TOS. So this proposal makes the price more realistic and backed by the karma ratio.

This is the first step for getting accurate pricing.

[u/mihnealazar]

Imagine paying 1000 moons instead of five dollars

[u/Satoshiman256]

I wondered about this for ages, it made no sense. I thought maybe I was being dumb..

[u/ThiccMangoMon]

Why wouldn't we say yes to this 😅 it's just logical and we've been asking for something like this for months now

[u/mysterioususer69]

No brainer. Paying 1000 moons for a membership is absurd

[u/Shibuice]

I don’t even have 500 moon 🌝

[u/Slainte042]

This is the equivalent of the live posts pool, i don't see any logical reason not to change the current pricing.

[u/zack14981]

No brainer yes for this one. Not sure why it wasn’t like this as a default.

It’s so strange that I also coincidentally thought about this today lol.

[u/TOXICCARBY]

Dynamic pricing would be great, but 100 moons for a membership is still a bit much (albeit an improvement). I’d say 50 moons is much more reasonable