Measuring turnover rate

[will-holley]

What is the turnover rate?

Turnover Rate: “the rate at which assets of this sort typically move into another person’s hands” [Radical Markets, 58]

Why is it important?

If a Harberger tax on an asset were set precisely at the probability of that asset finding a buyer in a given period (the “turnover rate”), then the [contradictory incentives to over- and under- assess] would fall into perfect equipoise. Source

How could it potentially be measured?

• Proxies for buyer interest?
• Winnowing appropriate period size?
  • taxation period?
• Correlation sourcing buyer interest proxy at the application layer vs. the protocol layer?

[will-holley]

Correlated: where to determine how much each asset is a substitute for any other?

[will-holley]

Whether or not an asset belongs to the same set of economics substitutes is largely a contextual question; for example: are all houses in London substitutes or only within the neighborhoods of Knightsbridge? Answer this depends on your vantage point, as a Londoner would certainly object to lumping KB residences in with less well-to-do neighborhoods.

As such, can an objective criterion floor criterion be established? Arguably, tokens belonging to the same ERC721 contract are as close as one can get w/ graduated differences depending on metadata (i.e. "rarity" of property values).

[will-holley]

Treat tokens defined within a discrete PCO contract as substitutes. Why? They share a common interface and implied context (e.g. symbol).