Taking a commission instantly on each bet actually removes one important incentive for the site owners:
To make sure that there's no bugs which give the gamblers an advantage.
That's the complaint I kept seeing when I brought up the idea of charging commission on every bet at JD. Investors want the site to also be "invested" in the site's profit.
That's not true at all because if that was occurring there wouldn't be a site for long.
It's quite possible that there is an obscure bug that someone is using to drain 1 BTC per day from the site. If they don't get too greedy you would never notice such a leak, and would just put it down to variance. It's not impossible for a site to survive despite a bug that lets a player steal from it, so long as the player is smart enough not to overdo it.
It actually should increase confidence in investors because the site has a guaranteed income. So no incentive for the site to cheat the investors which seems to be peoples biggest worry with investment sites.
That doesn't follow. Cheating investors gives you more income than not cheating investors. Whatever commission model you use. To say there is "no incentive for the site to cheat the investors" is disingenuous. The incentive is that it increases your income, and is undetectable.
Regarding the bug, someone could drain 1 Bitcoin each day on a site regardless of the investment model used (if such a bug existed).
I don't think there is less incentive to check for cheating at all in that regard.
I am invested in the site profit because if there is no site profit then investors will divest and the site will start to lose traffic to the competition.
For the second part you are right yes but the arguments I was seeing are that I would be more likely to cheat on weeks where there were zero commission. This new model means that that specific incentive is not there.
Obviously you are right that ANY site could still play against the bankroll of the investors undetected and increase their income. Investors still have to decide if they trust a site and it's owner enough not to do that before investing on it.
Would be great if there were a solution to that problem. I've seen a few discussions but nothing that would work in implementation.
