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A large issue in the market and the possibility of poorchama climbing in my opinion is how incredibly dominant passive income sources Dividends & Inflation even on short timescales are. The more powerful these passive income sources are the less impactful trading is, even at lower wealth levels, and especially on higher ones. At least with inflation you can't reinvest the gained networth back into the system unless you sell, and thus lose your inflating coin. Dividends on the other hand are completely broken.
Suisei's dividends last week are, while anomalous, a good example of this issue. Holding suisei through dividends had the same effect on your networth note, networth, not liquid as selling every suisei you had in a single cycle at a price 13% higher than her average without taxes, except that you also got to keep the coins so you don't even have to think about paying taxes again when re-investing. The fact that selling a coin when it is more than tax% above its average is a worse move than holding it through dividends is a major reason why hoarding coins is such a dominant strategy. The limitations of multicoin also play into the reason why this is the case but for as long as you can turn a purchase into profit profit here meaning networth gain within a week or two through dividends alone, the hoarding strategy will be the one that dominates the market. Increasing multicoin step alone would not fix this.
Dividends should still be viable, but as they currently are and have been in the past they are way too good. Thus I think that dividends should be a fraction of what they are now, and the ROI through dividends should be way below that of the tax paid on a coin, at most around 1% of the coin prices.
This would make selling coins during friday and holding liquid through divvies far more viable as an option compared to what they are now, since even the rich players would be starved out of liquid unless they sell.
Other more radical ways to "fix dividends" in a way that incentivizes trading over eternal hodling that come my mind would be to have dividends not pay you in liquid, but pay you coins you get "free" coins equal to to the amount of dividends you would have gotten from your stack of those coins, rounded up so the poorchama can gain a nice 100% increase for his one coin. Now you have to sell your dividends in order to re-invest them. or as an increase on the dividend day adjustments the dividend a coin would have paid out is added to the adjustment price of the coin on divvy day. Again, you would have to sell to get to use your dividends.. I haven't given either of these ideas any thought so I would not advocate for them, I'm merely mentioning them to get people's neurons activated and to incentivize discussion of even radical ideas.
As a side note, after the multicoin update(s), the inclusion of taxes is the best update the game has ever had. Besides the obvious trading uptime, the way one approaches taxes both mathematically and philosophically is the thing that truly makes or breaks a trader Triangle is a genius in my opinion, and I really like the depth that the inclusion of taxes has brought in the game.
The post may be quite poorly written so sorry for that. Its very much written in a flow-of-thought manner.
