Shift in Ad Revenue to Token Burns | Community Proposal Gains Momentum
A proposed shift in ad revenue management on r/EthTrader is gaining traction amidst recent restrictions by Reddit. The new model allows advertisers to burn DONUT tokens instead of making traditional payments—an adaptation following the platform's prohibition on third-party ad payments. This proposal comes in response to changes that could impact revenue streams for the community.
Context: Why the Change?
Advertisers previously paid with DONUT tokens to the treasury for various ad formats. Rates adhered to a dynamic pricing model based on subreddit traffic and DONUT's market value. However, Reddit's renewed rules banned moderators from receiving third-party payments. This move significantly hampers existing ad practices, pushing the community toward a new path.
New Advertising Model: Token Burning
The fresh proposal highlights a method for advertisers to purchase and subsequently burn DONUT tokens, rather than depositing them in the treasury. The advertising fee calculation follows a modified model:
AF = UMV / (1000 x MV) x 2
Where:
AF is the advertising fee
UMV stands for unique monthly views
MV equates to the market value of DONUT in USD
The multiplier is fixed at 2, limiting ads to pinned posts and AMAs. Discounts for longer rentals remain available, enhancing opportunities for advertisers.
Reactions from the Community
Interest is ramping up among community members, with some expressing excitement over the proposal. "This is a very smart way to still have ads while making the value of DONUT 🍩 go up," a supporter noted. Another suggested that exploring additional revenue opportunities could be a juice to diversifying income further, suggesting the potential for innovative revenue solutions.
However, there are concerns about potential revenue losses. If advertisers prefer traditional formats, they may balk at the new arrangement. As one user remarked, the absence of options for banner ads could prove a deterrent.
Challenges and Considerations
While the sentiment is largely positive, real challenges remain. A notable loss of treasury revenue could push away long-standing advertisers who relied on various ad formats. The feasibility of the burning mechanism and how effectively it retains advertiser interest remains to be seen. Interestingly, around 60% of advertisers may gravitate toward this new framework, indicating a willingness to adapt, while the remaining 40% are apprehensive about the current limitations.
"This ETIP protects r/EthTrader from Reddit admin action while maintaining DONUT's utility, closing in on long-term economic benefits."
Key Insights
🔥 Proposal aims to realign ad spending with Reddit's guidelines through token burns.
✅ Community feedback remains positive; many see it as a step forward.
⚠️ Risks include loss of treasury income, potentially deterring advertisers.
As discussions ensue, community voting will play a crucial role in determining the proposal's future. The vote is set to remain open for two days, with eager participants ready to make their voices heard.