DHL raising commission 0.5% to pay for transaction fees. Why this is UNFAIR.

Open letter to u/DHL-1. I know that this happened on the 1st of June. If I knew about this at the time I would have said something.

Vendor and buyer here, so I'm interested this will directly affect me. It's ridiculous to me that DHL was/could be losing money on withdrawals (this is the stated reason for the change). This is a business which is probably big enough or almost big enough to be publicly traded, not a charity. In my view, there is logically only one place for money to come from for withdrawal fees, and only one way for the withdrawal system of DHL to be self-sustaining and independent of site performance and commissions.

Higher commissions are NOT the answer. Especially if it still won't meet the need, as is estimated by DHL themselves.

Taking the withdrawal fees directly out of the withdrawals doesn't just increase simplicity, it ensures the consumers and vendors that not one single penny more or less than necessary is being charged in commission. I don't see the necessary black-and-white simplicity and transparency in a 0.5% commission increase which will be re-allocated to pay for withdrawals somehow.

Take a higher fee out of the amount being withdrawn but MAKE SURE THE USER IS INFORMED Alphabay takes a significant portion out of your withdrawal to make sure withdrawals happen in a timely manner, but it's frustrating because they don't actually say it anywhere and the user never consents to anything more than the stated 0.001 BTC listed on the Balance page.

I have two suggestions and one last important comment.

1) First withdrawal method is simple and just has two options:

a) One option with whatever fee is necessary to get the transaction confirmed with the next block, taken out of the withdrawal. INFORM the user of the exact amount to be taken out, prior to the transaction taking place.

b) One option with a lower fee that will take a while but isn't as expensive. Maybe something guaranteed to finish in the next couple of hours, but not days.

2) Second suggested method is that you adopt something just like HANSA uses for their withdrawals, where you can manually select the satoshis per byte before you broadcast the withdrawal. I know that your programmers have their pride, but for the benefit of the consumer I believe you should literally copy the idea, GUI and all. It's for the benefit of both buyers and sellers, and honestly a great idea. Not like dark net market code is patented or anything :)

Thanks for paying attention so far, as this subject matter is pretty dull. But it IS important!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Following is my primary argument, which is possibly the MOST IMPORTANT ARGUMENT AGAINST THIS CHANGE:

All this does is re-distribute wealth from those who possibly are working on slim margins already and are careful about their fees, to those who are maybe less careful about their bitcoin trading and don't understand how fees work/ are determined. Let me explain.

Sales comission is charged as a percent of the total, with no other factors taken into account.

Transaction fees are decided by the network rather than the site, according to the size of a transaction in bytes, not its monetary value.

This means that vendors who make high-value sales, perhaps selling bulk at low profit margins (percent-wise), are picking up the vast majority of the tab for people who don't understand how bitcoin works and are constantly making payments from addresses with a large number of inputs and whose transactions thus demand a higher proportion of the fees from what I presume is some kind of shared community network fee pool.

Thanks! Hope you at least consider this. It would be great if one of your programmers or admins would read this and get back to me.

If I had any idea that was how this was going down I would've said something way sooner, so I apologize for making this stand after the fact.

Perhaps someone from DHL reads this, and explain to me how the proposal is viewed as fair to everyone.

-DooshNozzzle


Comments


[5 Points] BFCDNM:

I assume you've never linked this account to your vendor account?

What do you sell?


[2 Points] attilathehunn:

A more incentive-aligned way would be to charge for deposits. Since more deposits = more inputs to the later transactions = higher miner fees.

Or maybe do some hybrid offer where each user gets 2 free deposits per week (or whatever) and all deposits above that cost them, which later pays for the miner fees.


[1 Points] c0rnerst0re_:

Not to mention, I think theyre whole ?BIP32? wallet key is flawed in a high transaction fee enviroment. Im not an expert by any means on the inner workings of BTC but having each indiviual transaction go to a new address without doing it in one lump sum causes so many inputs on the next transaction, to say, a mixer or a consolidation wallet Making the fee astronomical. . Again, Im not expert and maybe there is more too it security wise


[1 Points] TreesNTreats:

What about purchasing, owning, and maintaining your own mining server? Or have a contract with a miner.

You could charge a flat fee for noobs or a variable fee that the user could select or a pre-calculated fee for noobs.

That way you make money off the fee too.


[1 Points] DHL-1:

The users are informed, if you head over to the forum there's an announcement about the 0.5% raise going live on the 1st of june, and an explanation for it, however we're always open to any question or comment


[1 Points] ksosk:

That's cool and all but where's my pack, nigga?