Hi.

First of all, thank you for setting up Narrative and the alpha program. This is an exciting initiative and I'm honored to be part of it.

I was reviewing the rules for niche ownership renewal. Can we discuss the fee system?

The way it's structured now, the owner will pay either the smaller price, for a niche that is preactically dead, or 20% of the revenues generated the previous year.

This is a bit steep. The renewal is practically a 20% tax on income. Considering that the owner will have to pay federal and state taxes, in the US, for an average of 1/3 of the income generated by the niche, the owner will easily end up losing 50%  of the revenues in taxes and fees.

This is highly discouraging.

Consider that the owner will have to do a lot of work in maintaning the niche.

I suggest that you discuss this plan a bit a see if you can adjust the fee to a more reasonable amount. Ideally I would like to see it reset to 5%.

In the scheme of things, once the system is up and running, there will be so many niches, that a 5% will generate a lot of revenues for the company. Plus, that will not be the only source of revenues for Narrative. You get to make money from the content and advertising.


The alternative is that niche ownership will be seen as potentially a lot of work and not so much money in exchange. Losing 50% of the revenues is very demotivating. You risk to cripple the whole niche system by requiring such a high portion of revenues every year.

I've seen this happening in other markets. It leads to a few super-popular power player making good money while the rest makes next to nothing. In the short term, it doesn't make any difference for the company, but in the long term it is damaging

Cheers.

 

Original Post

Hi Paolo, I'm delighted to see that you joined and are contributing to the conversation here! It was great to meet you last week.

Regarding the niche renewal fees, the fee is the greater of $75 USD (in NRVE at the going market rate) or 20% of the previous year's ownership revenue for that niche.  We feel that is the fairest possible system for the community as a whole because it reflects the fact that some niches will become massively profitable while others will not. It allows the entire community to share in the big successes. (And remember that niche ownership fees are a big part of the Network Rewards revenue base that everyone in the network participates in).



We have also said that we could consider mechanisms that allow owners to pay renewals in installments, or pay out of their earned revenue (not set in stone, just under consideration).   

Hi Rosemary.

Loved your presentation at 1MC Charleston.

I hear you. I still believe in the points that I raised but I know that these are formative times. There is so much to figure out.

I wanted to bring to your attention and very possible scenario that I've seen in the past.

Cheers.

As the earnings per niche will be completely token based I would not introduce any minimum renewal value in fiat. As mentioned before I do not really see a point to look at fiat even though I think it is ok to use a min fiat value for the initial auction. As soon as the platform is up and running make it the same % for everyone in NRVE token and add a function for automatical prolongation of the niches. Would keep things as simple as possible for all involved.

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