
Proposal “DIP5-BlockchainUsernamePricingModel“ (Closed)Back
Title: | DIP 5 - Blockchain Username Pricing Model |
Owner: | GrandMasterDash |
One-time payment: | 5 DASH (110 USD) |
Completed payments: | no payments occurred yet (1 month remaining) |
Payment start/end: | 2018-10-17 / 2018-11-16 (added on 2018-10-15) |
Final voting deadline: | in na |
Votes: | 120 Yes / 249 No / 118 Abstain |
Proposal description
On 28 Aug 2018, DIP 5 was announced on the dash forums. This DIP is very important as it lays out the structure of usernames, the very foundation of Evolution. Some feedback / suggestions have been made, however, after one month, there have been little responses from Core.
This proposal recommends some improvements to DIP 5. It is for guidance only. You are voting Yes if you broadly agree with these suggestions.
Blockchain Username Constraints
DIP 5 takes a conservative approach to the characters permitted in a blockchain username. Namely, a subset of ASCII characters with no foreign language support at this point in time. Obviously, this may change in the future but it is intentionally taking baby steps first. In this spirit, I believe the period (".") should not be allowed in a username. While there is no mention of extending this namespace to DNS, I feel this is something we should be mindful of, and including a period at this early stage might prove problematic in the future.
Blockchain Username Pricing Model
I believe there is a good argument to be made for premium short blockchain usernames. Eighty percent of all english words are seven characters or less. Purely for reference and interest, you may wish to look at these stats for frequency counts: http://www.norvig.com/mayzner.html
A blockchain username should be formed from 37 characters; A - Z, 0 - 9 and an underscore. The permutation count rapidly escalate, but of particular note, three and four letter words and abbreviations are both common yet limited in number. If we consider just letters and numbers (for easy recall), then three characters amount to just 46,656 permutations (36 x 36 x 36).
In the real world, promotional activities for businesses, charities, competitions etc make extensive use of short dialing codes e.g. "Send the text "PRIZE" to 123". Generally speaking, short codes are easy to recall. The average person can recall seven or eight objects after hearing them for the first time.
Given the above, I propose that a flat mining fee apply to all usernames with the exception of three, four and five character usernames; Gold, Silver and Bronze respectively.
The duration of a username lease is open to debate but I think the premium usernames mentioned above should allow for a minimum of one day.
The cost of premium usernames is also open to debate but my initial suggestion is:
Gold : 0.1 dash per day
Silver : 0.01 dash per day
Bronze : 0.001 dash per day
Fees shared between miners and masternodes.
The motive for this pricing model is simple; short usernames have a very limited supply, we should deal with them accordingly.
The high price to entry for short usernames raises the stakes in a very neutral way i.e. big brand names (or high risk scammers) can afford to lease short usernames. Short premium usernames discourages hodling on a long term basis and encourages entrepreneurism.
Thank you
This proposal recommends some improvements to DIP 5. It is for guidance only. You are voting Yes if you broadly agree with these suggestions.
Blockchain Username Constraints
DIP 5 takes a conservative approach to the characters permitted in a blockchain username. Namely, a subset of ASCII characters with no foreign language support at this point in time. Obviously, this may change in the future but it is intentionally taking baby steps first. In this spirit, I believe the period (".") should not be allowed in a username. While there is no mention of extending this namespace to DNS, I feel this is something we should be mindful of, and including a period at this early stage might prove problematic in the future.
Blockchain Username Pricing Model
I believe there is a good argument to be made for premium short blockchain usernames. Eighty percent of all english words are seven characters or less. Purely for reference and interest, you may wish to look at these stats for frequency counts: http://www.norvig.com/mayzner.html
A blockchain username should be formed from 37 characters; A - Z, 0 - 9 and an underscore. The permutation count rapidly escalate, but of particular note, three and four letter words and abbreviations are both common yet limited in number. If we consider just letters and numbers (for easy recall), then three characters amount to just 46,656 permutations (36 x 36 x 36).
In the real world, promotional activities for businesses, charities, competitions etc make extensive use of short dialing codes e.g. "Send the text "PRIZE" to 123". Generally speaking, short codes are easy to recall. The average person can recall seven or eight objects after hearing them for the first time.
Given the above, I propose that a flat mining fee apply to all usernames with the exception of three, four and five character usernames; Gold, Silver and Bronze respectively.
The duration of a username lease is open to debate but I think the premium usernames mentioned above should allow for a minimum of one day.
The cost of premium usernames is also open to debate but my initial suggestion is:
Gold : 0.1 dash per day
Silver : 0.01 dash per day
Bronze : 0.001 dash per day
Fees shared between miners and masternodes.
The motive for this pricing model is simple; short usernames have a very limited supply, we should deal with them accordingly.
The high price to entry for short usernames raises the stakes in a very neutral way i.e. big brand names (or high risk scammers) can afford to lease short usernames. Short premium usernames discourages hodling on a long term basis and encourages entrepreneurism.
Thank you
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(2) hold an auction for 3-5 character names (to distribute more fairly according to a "free market"), or if still no agreement, who thinks we should
(3) increase the minimum name length to 6 characters (at least until we see how the "name market" turns out, before deciding to open up "more premium names")
https://en.m.wikipedia.org/wiki/Endowment_effect
Once you hold a name, you will be much less willing to let go of it.
For example, I may pay $10 or even $100 for a name I desire. But I would not give that up for at least $1000 or $10,000 or more. I would NOT initially bid $1000 for it though.
As a social media influencer, I want to say, "Send your dash to "Strad".
The longer I make my username, the more potential there is for error. Plus, a scammer will choose a similar name and the bad spelling won't be noticed so easily.
Still, it seems obvious that short BU names, email addresses, and Twitter handles are *more* valuable: I guess what's unclear is *how much more* valuable. You imply it's negligibly more valuable (or not at all), whereas I think it's not an insignificant value difference.
Are there cases of short Twitter and Gmail addresses being sold?
https://www.quora.com/What-is-the-best-way-to-get-a-short-Twitter-handle
From the link above:
> Or if you want something that general users can't (just like 2/3/4 characters in Twitter handle) you will probably need to contact Twitter for that short handle just like WSJ, EV, BBC, or else.
https://www.quora.com/Where-can-I-create-the-shortest-email-address
There clearly seems to be a demand for short names. It seems odd to give away for (nearly) free something that has so much value.
BTW, thank you for engaging with us on this. I used to be worried wondering if usernames would be implemented well or not, but overall I am happy and look forward to them.
b) aware can request funds from dashboost dot org? Proposal fee is 1dash
And what's the problem about people buying names and selling the popular ones for a profit? If you're opposed to free markets and capitalism: What on earth are you doing here? :P
It's the same reason why LVT makes sense for land. When you own a piece of land, you don't (necessarily) need to do anything. Just sit there, and the society around you will make improvements, like building infrastructure/roads/public transportation/fire departments, etc... and you will benefit, whether or not you did anything to contribute. Your role in all this is merely to "own title" to that piece of land (which happens to be enforced by the rest of society). The society's improvements around you makes your land more valuable, yet you benefit by extracting the rent due to your land title.
https://povertythinkagain.com/controversies/a-word-from-the-sponsor-of-the-film-the-end-of-poverty-georgism-capitalism-and-socialism/neither-capitalism-nor-socialism/
Similarly, when you "own" a username, you don't need to do anything, yet others around you make the network more valuable, and as a by-product, your username more valuable too.
> what's the problem about people buying names and selling the popular ones for a profit?
There's no problem with "profit" per se. But how did you get that profit? Did you get it by producing something of value? Or by monopolizing a valuable/limited resource and "rent-seeking" to extract the rent from it?
How about if the network is "selling" the popular names for much less than they're worth? If "the network" is "selling" a name worth $1000's for mere cents, and your so-called entrepreneurial profit-driven person scoops up / "land grabs" (and squats) many popular, valuable, limited names, how is that "entrepreneur" improving the network? Does he "deserve" that profit, or was the network just stupid enough to sell it to him at the wrong price? Who is in charge of selling these names and at what price, anyway?
> If you're opposed to free markets and capitalism: What on earth are you doing here?
It's not much of a free market if whoever gets there first can just become a rent-seeker indefinitely.
One solution would be to have an "Auction" every year (or some fixed amount of time), where the price is reflected by the market (which would be an actual *free market*). Or, you could have a variable-length lease that reflects the *free market* rental value.
This proposal's "fixed" lease fee is a rough estimate, but better than nothing, IMO. Personally, I would prefer more free market (leases based on market prices) but that would add a lot of complexity - hopefully this moves in that direction over time, rather than toward the rent-seeking non-free market of land grabs and squatting.
By your logic no one in 2014 should have mined any coins because they should wait for everyone else to give them a fair chance at acquiring the same amount. Let's just leave the name transactions to the market instead of these socialistic ideas where we attempt to centrally control it.
Cheap / affordable usernames allows a few early birds to suck up lots of usernames. That's not a problem when you have trillions of permutations, but it's a problem when the permutations can be counted in their thousands.
This pricing model will hopefully distribute the most memorable names more fairly.
Can we just not support <6 character names at first and decide on those later?
If someone sucks up millions of usernames in perpetuity (assuming they affordable), then isn't this effectively an attack vector?
With a flat fee - and presumably affordable - a single scammer might appropriate thousands of usernames, forever. Can a single scammer do that with 3, 4 or 5 character usernames? Yes, perhaps a very rich scammer. Thus, the number of scams is reduced because it would take many scammers to occupy that limited space of 3, 4 and 5 character usernames.
There would still be scammers I'm sure but it will be more expensive to do so for contentious usernames. Also, as the username would be treated as an asset that can trade ownership there would still be an incentive to sell the asset to the person or org that would most benefit from it.
The DNS route points towards what you propose, the twitter handle route points towards I propose. Though admittedly I don't fully know how twitter handles are delegated
However, in my opinion it's a complete exaggeration to charge a specific amount of Dash per day, for a short username.
Dash is still too volatile, and if anything, we should charge a fixed dollar amount equivalent in Dash, for short usernames. (remember 10 months ago, when Dash's all-time-high made a proposal cost more than $5000 proposal fee?)
But charging $16 per day for a 3-character username, i think is way way too overpriced.
It's not like Dash has a $1 trillion market-cap and half the world is using Dash, maybe then it would be appropriate.
We should be glad and very grateful, if big brand names are even going to use Dash.
Overcharging them for the privilege of having a short username will only make us look like greedy robber barons.
And it will only hurt the reputation of Dash.
I think it would be appropriate to charge annual username fees like this:
6 and 6+ characters of username length: annual fee of something between $0.10 - $0.50
5 characters username length: annual fee of $5
4 characters username length: annual fee of $10
3 characters username length: annual fee of $15
We should not totally delude ourselves about the worth of a short username.
After all, it's just a username, in one of many cryptocurrencies out there. Come on now.
Why i'm suggesting to charge a small annual fee also for the longer usernames?
Because Dash has a lot of envied haters out there, that might just pick up too many interesting usernames, more than anyone could ever possibly handle, use or market(sell).
Also, there are so many people just testing out various cryptocurrencies, but later forgetting all about it and never use them again and not even remember it anymore.
And after a couple of years, this may very well result in a situation, where 80% of interesting usernames are not only taken, but in fact are orphaned. While at the same time others are waiting for such a specific username to become registerable again, people who would want to really use it.
Therefore, there should be a mechanism in place, that will return a username back into the eligible pool of registerable usernames, unless a minimal annual fee is being paid for yearly renewal, indicating the interest of the current username owner, to keep his username.
And chances are, even a minimal annual fee will only be paid, if the owner cares about it and has interest to keep and use it. If not, such a username should return back into the pool.
Something else we should really consider, to discourage at least brand name squatting:
We should make it absolutely clear, that Dash intends to respect and comply with copyright, trademark and servicemark laws.
Upon official request by a copyright/trademark/servicemark owner in whatever jurisdiction, in case such or a highly similar username is already taken, the username should be forcefully taken and awarded to the holder of such legal rights.
Not offering such a procedure to the corporate latecomers, will only give us bad reputation and sooner or later, it will mean legal trouble for Dash.
If a private person is going to register the username cocacola or coca_cola or coca-cola, he should be aware, that it can be taken from him anytime, upon official request from the corporation, if they ever demand to hand them over the username.
It is clear that such a policy will likely result in some litigation, at least in certain cases, when not identical but highly similar brand names are being used by individuals, etc. and maybe it will be necessary to elect a Dash-internal Panel of Arbitration to decide in such cases, according to principles of law.
And if anyone really wants to register, say, 1000 short usernames (non-brand names) for an annual fee of $10,000 then i say let him do it. And good luck with it.
He will most likely learn, that he is not even able to sell 98% of them and will have difficulties to turn a profit.
But if he still manages to break-even or even turn a profit, maybe he deserves it.
It's not like it's a license to print money, but requires a lot of effort to market(sell) such usernames, and thus there is risk of loss.
This proposal is not about specific pricing or how to screw as much money as possible. It is simply recognizing that short usernames are in very limit supply, high demand, and they do, and thus represent a premium.
I believe we should learn the lessons of the telecommunications industry, marketing and DNS. Short numbers or domain names are not just great marketing tools, they are also recognized as premium / non-standard numbers in their own right. In time, people would recognise dash usernames of 3, 4 and 5 characters as premium names, and this adds value for the leaser.
Regarding the recycling of usernames, in the phone industry, numbers are typically moved to the back of a pool, to reduce the effects of historic use e.g. to stop someone receiving constant calls because the previous owner was a taxi company.
Keep in mind, all these issues, whether it's trademark disputes, or how usernames are recycled, they are outside of the scope of this proposal. They can be dealt with separately and additionally to this proposal. This proposal is not an all encompassing solution, it simply addresses the problems of limited supply, high demand and good distribution (no centralized hoarding).
If this idea fails, we can fall back to the original DIP without consequence. The reverse is not true.
I believe the trick for user name availability is to require a suffix that is completely flexible except for maybe a ".dash" at the end to let people know it's a Dash payment address. For example, I could get something like nerdmoney@my.dash and someone else could get nerdmoney@sendme.dash. This solution would visually work a lot like an email address but I'm sure there are other creative solutions out there.
I won't say this will stop all possible brand confusion, because I could get something like nerdmoney@cocacola.dash. However Coca Cola doesn't have to adapt cococola.dash as their official suffix for their Dash payment addresses. This would probably not be a good idea anyway given people would start grabbing similar looking addresses to try and spoof official addresses.
I don't know if this a perfect solution, but having tiered payments with renewals just seems way too complicated.
"Payment keys/addresses are handled separately to avoid linking a username with its financial activity. This separation also improves security since leaking the private key for the blockchain user does not result in a loss of funds."
So yeah, I like the idea of reducing name/domain scalping, but I'm not sure rent-seeking is the best way to accomplish this. Maybe once we know more about what DCG has actually built in this regard we'll have a better idea. I'll revisit this later this month to see if any more has been gleaned.
It also has 2 beneficial effects: (1) by mitigating the rent-seeking it "pushes" the resources to be allocated more efficiently (since you must pay the cost of the "rent", and you can't just squat, you will only use that resource if it has actual current value to you now, and not the speculative "greater fool" use, i.e. merely hoping to sell it in the future), and (2) that rent goes back to the network to fund things that benefit the "society" (whole network) similar to the treasury (but instead of funding from the block reward, it's from re-capturing the value from a "rent-seeking" activity)
I believe there can be solutions to the problems you mention. I don't think a username should be tied to a wallet. If your username changes, then you don't get the new username's "old wallet balance" - likewise, if you lose your username you should still be able to access your old wallet, but under a different username. If you forget to update your published username, that's similar to the problem of forgetting to update your 33 character bitcoin address on your website when you get a new wallet.
The second problem depends purely on how addresses and wallets interface with usernames, and the first problem is contingent on the second as well, so at this point we can only wait for more information.
I'm just glad this proposal has sparked debate. Hopefully, DCG can engage with us on this.
Or none at all, its an absolute cash grab, whoch the dao already does in the form of 10% which imo has been wasted quite a bit already,
Whats next taxes on the blockchain lol
Easy No
The specific "lease length" (daily/quarterly) is up for debate. Personally I think a longer time-frame like 3month, 6month, or 1yr "leases" makes more sense than being able to "rent" a name for just 3 days. Names should be relatively persistent, but allow for change over time. It boggles my mind when someone says "this is an easy no" when agreeing with the fundamental idea.
How do you propose the network mitigates the "unfair" land grab and name squatters? That is more like "an absolute cash grab" - whereas charging a fee for a limited resource is not a cash grab, but a tool to incentivize more efficient use of resources - by reserving a premium name, you are excluding the rest of the network from something with a high-demand use value. Having a lease for it does two things: (1) it more efficiently allocates the usernames to those willing to pay for the premium "product" and (2) it raises money for the DAO which in effect goes back to the network in the form of better network services.
For more info on why this is a good idea, check out "LVT" (which can be applied analogously to premium usernames, akin to a limited natural resource): https://kaalvtn.blogspot.com/p/arguments-for-lvt.html
Name squatting on longer names is possible but at least the permutations are plentiful.
DIP 5 is not proposing free usernames but they are affordable for mass adoption and they are all the same price despite short usernames having a very limited supply.
I believe this proposal will encourage a wider distribution with more legitimate uses. Pricing is simple and predictable while discouraging squatting.
If we use this pricing model, we can refine prices and duration. But if we keep DIP 5 as it is, we can not later undo our mistake.
well-informed decision. Which means i think this polling proposal has been created a bit too early. Which means i will ABSTAIN from voting for now, untill more information is provided.
https://github.com/dashpay/dips/blob/master/dip-0005.md#blockchain-user
https://blog.dash.org/introducing-blockchain-users-428d87a1e87a
Position Dash Core-Team on DIP 5 implementation (dd 1st oct 2018)
Link : https://www.dash.org/forum/threads/announcing-dip-5-blockchain-users.40361/#post-198227
"Thanks for the feedback everyone. There were quite a few discussions and "pre-DIP" documents internally over the previous year that covered some of the ideas above in the attempt to balance various factors (usability, security, flexibility, openness, accessibility, etc.) and be in alignment with the whitepaper. Your comments have been seen and there continue to be some discussions regarding the details to ensure future-proofing."
My concern is that the current specification is too loose. We can apply the constraints in this proposal and adapt it, but the reverse is not true.
From an objective point of view, six characters yield more than two billion permutations. This proposal is focused on the limited supply of short - and therefore memorable - usernames and deals with it accordingly.
i.e. It makes more sense to charge more for an English word like BEST than some random letters like KJWQ (instead of having a flat lease-rate based on characters). And since it's a market, it'll adjust over time, instead of having a flat "0.01 Dash" rate where we don't know if it's too high or too low, now or in the future.
The only problem is it adds more implementation complexity.
But this proposal's idea here is much more simple and practical. The "more in demand" real estate should come with a cost for the privilege of "keeping out" other users. And the "utility" cost will come back to help fund the DAO.
And if people don't want to pay, they can simply reserve a longer name (6+ characters). The premium users who desire the benefit of excluding the rest of the ecosystem from using that "real estate" (premium username) should pay more. This is more fair than a first-come-first-served "land grab".