Ability to Lower Management Fees
planned
Factor Based
As we have seen with the ETFs/Mutual fund industry, fees are going lower every year with the competition. From my understanding if I decide to charge 1% management fee, it is set in stone and cannot be changed. However it’s not how it works in the real world. Fund managers have the right to maintain or lower the management fee to deal with the competition. I feel it should be the same with the smart contract so you don’t have to create a new vault every time you lower your fees.
DeepCryptoDive
planned
DeepCryptoDive
You will be able to change your fees with the next big release:
G
Grant Huebner
I'm not debating because I want to increase my rate, just to make that clear. I just want the most free market possible.
G
Grant Huebner
How is it pure greed? So every time any company or person increases their prices or ask for higher wages they are acting out of greed? There is a need to determine market equilibrium. Limiting the upper bound is the same as limiting the lower bound. It is called price controls and this tends to create a lack of efficiency in a market place. Crypto is so new and decentralized management is in it infancy. How do we know the future overhead costs of managing a vault? What happens if those costs increase? Or as I said, a proven track record leads to more subscribers. Maybe legacy investors pay the prior rate. Currently you would need to dissolve your vault and make a new vault to change rates which hurts everyone. I'm not against checks and balances, and want to avoid abuse. But, right now we are all paying gas fee's for our clients. Hopefully, that is resolved soon. But, we don't operate in a world of fixed costs and there are going to be unforeseeable future costs. I don't know why you made this personal. I'm just trying to contribute for enzyme to make the best product possible. Vault rates are only of concern between the vault manager and vault contributors. If one is not satisfied they should have the autonomy to make their own decision, for vault managers it is adjusting their rate as they see fit, and vault investors, investing in any vault they want. The whole point of DEFI is autonomy.
Factor Based
Grant Huebner Then make sure to add performance fees in your vault. If you are in the top decile you will benefit from it that way. Increasing the fees beyond what was initially set is pure greed. But recalibrating the management fee to reflect the competitive environment is totally normal and fair.
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Grant Huebner
Well, what if you are the top 10 percentile of all funds on enzyme. People should pay a premium for that. With voting approval might limit the abuse. But the whole point in to be decentralized and let the markets determine value.
Factor Based
Grant Huebner I don't agree with this because it would leave room for abuse. Management fees cannot be raised after a client signed up. However, they should be allowed to go lower or maintainted.
G
Grant Huebner
Just the ability to change fee structure overtime.