So you want the benefit gained by publicity and promotion but without having to pay for it?
There are multiple reasons for this view to be incorrect.
Firstly, why would I automatically be interested in a growing pool ? It does not necessarily increase my profits, it just reduces my variance.
Secondly, this idea does not need advertising, just like bitcoiners have a natural incentive to spread bitcoin, investors have an incentive to promote JD.
Thirdly, accounting expenses against the betting pool transforms the value proposition from :
- Reverse satoshidice (I'm basically betting my investment with a negative house edge) which is predictable on the long run, to
- Reverse satoshidice, with unpredictable expenses, maybe. So if I'm smart I just divest when the forum auction for advertisement space starts and reinvest when it's done, or I'm buddies with the operator and divest before expenses are charged and reinvest afterwards.
The correct way to do it is to account for expenses against the site profits (the 1% commission on profits), it doesn't matter whether the 1% commission becomes 2%, it just needs to be predicatble. I'm not investing in a company, I am lending money to it. Apples and oranges.
Oh, and last thing, the description sorta contradicts itself :
Your investment may also be used to fund promotions, or anything else the site owner considers to be beneficial to the overall growth of the site's bankroll.
and
The site currently charges a 1% commission on net investment profits to cover expenses such as advertising, server hosting, etc.
I would really like to see this cleared up ASAP so I can decide whether I want to throw more money at dooglus or divest.
Oh, and last thing, a proper GPG-signed contract for investors would be nice.
Overall the idea is terrific, I just think it needs some polishing on the edges.
