Should Splinterlands have a burning mechanism for Splintershards (SPS)?
Splintershards (SPS) is the cryptocurrency governance token integrated into the Splinterlands game with the intention of providing increasing levels of decision-making ability and control over the product to the player-base, asset owners, and other stakeholders. It is the most treasured asset of this game and holders have many perks out of it. But looking to the Total Supply for SPS it is standing at 3,000,000,000 (3 billion) tokens. Just thinking of this gives me chills as it is quite a big number no matter how successful the game is.
If we were to think of SPS ever getting to a $1 price point, that would mean that the Splinterlands SPS Market Capital will reach $3 Billion. Is that possible? I really don't think so. Not that Splinterlands doesn't have strong tokenomics, but it will be hard to get there without considerable growth which we see that lately is more linear than usual. It will require quite a push to get it there, the team has a lot of developments in progress and if those are successful things might improve and maybe such a valuation isn't out of this world.
Now if we were to compare Splinterlands with other blockchain games like Axie Infinity which has its token AXS with a market supply of $3,924,192,131 (~4 Billion), I think there might be hope also for Splinterlands to get there. If you were to ask me, Splinterlands is much better than Axie and has many use cases and better tokenomics, just not the promoting and user base that Axie has. What do we need to reach there? Well, a first step would be to list SPS on a major exchange like Binance. Aggro and the team always say within the AMA that players should tell exchanges to list SPS, but I think this is an action that the Splinterlands should take.
But until the future is blurry, there are mechanisms that could improve the tokenomics of crypto assets and one of them is to have a burning feature. Lowering the Supply should add buying pressure and thus improve the price. So there is one question for you - Should Splinterlands have a burning mechanism for Splintershards (SPS)? I think so, but I wonder what other players, investors or users simply think about it.
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I'm sure Splinterlands team has scheduled such an event. However, it would not be surprising to see that the players may be asked to burn SPS for a card / pack or digital asset.
Everything is possible in Splinterlands 😎
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In the long terms the 3 Billion supply might be justified, but we don't want to grow beards until SPS reaches an appealing price. There should be a balance in that and I think burning SPS would have positive effects.
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Really that would be great. Burning SPS will have very positive effects and SPS gains more value. As far as I know, I think the total supply of SPS is 500 million at the moment. The current total supply is roughly 16% of the maximum supply.
Burning SPS will both increase the price of SPS and increase the number of investors investing in SPS. In addition, there will be an increase in the number of players joining in the game.
There are many easy ways to burn SPS. So I think this will happen in the future.
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I wouldn't rule out burning of SPS to impact its price positively, having it listed in exchanges like Binance would be an option I'd rather go for.
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Yes, there needs to be a way to burn SPS. I know the miniset that is upcoming will require SPS to purchase (in the past Mini card sets required DEC to purchase). I hope they burn at least a portion of that SPS.
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Thanks for sharing! - @alokkumar121
Yeah, I would say that Splinterlands engage in timely token burns. This will reduce the token supply and also foster price increase. Listing SPS on other exchanges would be a great idea too. It will help draw capital from external investors.
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