This has been already acknowledged in here, Numerai knows it works like that, but they dismissed the problem as a theoretical one that doesn’t happen in practice. I would be happy if they ran some proper simulations and proved the users that they don’t have to worry, but they simply got rid of the matter with just one questionable explanation. But that is a fundamental property of TC that requires more attention.
At the same time, users keep seeing that TC doesn’t correlate well with model metrics, so there would be good reasons to investigate more.
Numerai has properly tested the effects of the TC mechanics on their fund (it has been reported multiple times how the performance has improved with TC,how many simulations they ran, etc), so we know it has been a great change for them, but why don’t they do a thorough analysis on the payout scheme too (the user perspective of TC)? I mean, even if there was a problem in the payout, that could be improved without getting rid of the benefits that TC brings to their fund. I don’t see why there is no discussion on this topic. Maybe I am just wrong.
I just would like to see evidence that it is not a real concern and I would be happy.