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<title>Private bittorrent trackers are markets</title>
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<h1>Private bittorrent trackers are markets</h1>

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<p>Private bittorrent trackers have a currency called ratio, which is the bits you
upload divided by the bits you download.</p>

<p>You have to keep the ratio above a certain lower limit, otherwise you get banned
from the market or have to cut a deal with the moderators → bankruptcy.</p>

<p>New liquidity is introduced to the market by so-called "freeleech" events or tokens,
which essentially allow you to exchange a token (or some time in the case of
time-restricted freeleech) for some data, which can then be seeded to generate
future profits without spending ratio.</p>

<p>Sometimes, ratio is pulled from the market by allowing to exchange it into website
perks, like forum titles or other benefits like chat-memberships. This has a
deflationary effect. It could be compared to "vanity items" in MMOs, which don't
grant a mechanical advantage in the market. Is there a real-world equivalent?
i.e. allowing rich people to exchange some of their worth for vanity items instead
of investing it for future gain?</p>

<p>Sometimes, ratio can be traded for more than just transferred bits, for example by
requesting a torrent for a certain album or movie, paying some ratio for the
fulfillment of the request.</p>

<hr>

<p>Based on how bittorrent works, usually multiple people "seed" a torrent. This means
multiple people can answer a request for trading ratio. Part of the request (e.g. the
first 30% of a movie) can be fulfilled by one party, part of it by a second or even
more parties.</p>

<p>For small requests (e.g. albums), often the time between announcing the trade and
filling the trade is important for who is able to fill it. Getting a 1 second
head-start vastly increases your chance of a handshake and starting the transmission,
so on average you get a vastly higher ratio gain from that torrent. Meaning that using
a bittorrent client which is fast to answer as a seeder will lead to better outcomes.
This could be compared to mechanisms seen in high-speed trading.</p>

<hr>

<p>Of course these market-mechanisms are in service of a wider policy goal, which is to
ensure the constant availability of as much high-quality data as possible. There are
more mechanisms at play on these trackers that all contribute to this goal (possible
keywords to research: trumping, freeleech for underseeded torrents).</p>

<p>In general, it is important to remember that markets are only a tool, never an end
in themselves, as neoliberalists would like us to believe. They always are in service
of a wider goal or policy. We live in a society.</p>

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