In the time leading up to the launch of ENS Usernames I started modeling the potential economic value (https://observablehq.com/@bgits/untitled) in order to better understand how the different levers we can pull on impact economic value in the network.
With ENS Usernames now live on Mainnet it’s worth seeing how the reality tracks against the model. The key metrics are:
number of usernames registered and
gross value of registrations
Starting with the number of registrations we absolutely blew away the expectation. Based on the assumed user count and registration conversion rate the model expected a total of 1250 registrations by the end of the first year or 396 as of today. What actually occurred was 915 username registrations or 73% to goal with 2.5 quarters still left to go!
In regards to the gross value of the registrations, the model assumed an average price per name of $1 equivalent which would have a produced a gross value of $396 as of today. As the price was set to 10 SNT per name and with SNT having an average price ~$0.02 during the period, it produced an average price per name of ~$0.22. The result being an actual gross value below the expected. The actual value is currently only 16% to goal while expected would have been 36%.
With these two data points my personal conclusion is that the price for registration should be raised.
Raising the price now will also give us a new data point in helping to discover how price sensitive username registration is, which ultimately will allow us to build more accurate models that lead to better decisions and products.
What are your thoughts, questions or criticisms on raising the price of usernames?