Rake Fee Adjustments

General
1

In response to the feedback received by the community in regards to the rake fees, the Terra Poker team has decided to poll for the following changes:

  • Small blind tables: 1BB/2BB tables will remain at 8%
  • All other tables: Rake fees will be cut in half to 4%. This will apply to TPT (2BB/4BB, 5BB/10BB and 10BB/20BB tables) and all axlUSDC tables

The rake fee adjustment has been a data-driven decision based on the rake fee data collected here: Terra Poker Rake Fee.

TP tables due to the volatile price of TPT and LUNA, as well as the high LUNA denominated gas fees across the board operate at a loss. To cover this, we will be maintaining the regular rake fees on the 1BB/2BB tables.

Lastly, we understand that a max cap % needs to be made as well. This requires further technical development and changes in the contract. This will be Phase 2 of the adjustment and will go into a separate poll once technical changes are made.

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2

It’s evident that Terrapoker is able to cover its operating costs when TPT is above 0.08 LUNA (provided that LUNA stays approx. 2.5 USDC per LUNA. Given that the TPT/LUNA currently stands at 0.02 LUNA per TPT, Terrapoker should consider keeping 2TPT/4TPT tables at 8% as 4% rake will not be able to cover the average cost being at 0.15LUNA per round.

To have a deeper analysis on this, it’ll be good to analyse the average pot per round by each table (1/2 ; 2/4 ; 5/10) to determine the potential rake fee be it 4% or 8%. On the back of the napkin analysis, 2TPT/4TPT at the current TPT prices puts the protocol at too much of a losing end.

Phase 2 should include a dynamic rake fee % that is determined based on the price of TPT. As Sumo suggested, an airdrop or promotion of TPT drop can be done randomly or for players that plays above certain block amount.

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