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there should be a small tax per order put out, even if cancelled and a small percentage-based tax on each trade. If that behavior has been determined to exacerb
by hderms 13y ago
there should be a small tax per order put out, even if cancelled and a small percentage-based tax on each trade. If that behavior has been determined to exacerbate price declines that externality should be captured in a tax and de-incentivized properly.
- kylebrown 13y agoRipple works this way, a fraction of an XRP is charged as a fee for each transaction (posting and cancelling offers). As a decentralized bid/ask ledger protocol, the fee is needed to prevent tx spam and DoS attacks.
- KMag 13y agoIf your goal is to reduce the maximum frequency of order inserts/cancels, it makes more sense to directly charge based on frequency. Several exchanges (the Hong Kong Stock Exchange, for one) rate-limit each connection to the exchange, charging fees based on the number of transactions per second allowed on the connection.