Our systems constantly optimize for healthy marketplace dynamics that allow more people to create, sell, and earn. Our goal is a dynamic system that responds to market conditions to maintain marketplace health for the long-term earnings of our UGC community.
Dynamic price floors are specifically adapting to balance supply and demand. The best signal of a healthy and balanced market is creator earnings, and our price floor algorithm is designed to increase aggregate creator earnings. We have updated price floors only when there is evidence that the change achieves that goal as aggregate creator earnings have been increasing since launch.
We also give creators controls that let them set rules for how much to charge for their items relative to these dynamic prices. We’re confident this will help make sure creators can earn while giving consumers more access to items at fair market prices.