Splinterlands and GLS - Tokenomics should reflect SPS and GLX burned tokens
It is no hidden truth that the Splinterlands and Genesis League Sports have a huge supply of SPS and GLX tokens in the billions - 3 Billion for $SPS and 2 Billion for $GLX. If we are only to think that this supply hits the market, we would see the prices of the tokens deteriorate so much that will make them unattractive as crypto play2earn games. Thus, I think that tokenomics are very important and they need to be transparent and show at every moment the amount of the tokens and where those reside or are used on. I still find blurry tokenomics information and I cannot get a clear image of how these assets perform and what the future might have in place for them.
Burned Supply
First of all, I think that the Burned Supply amount should be added to both SPS and GLX tokenomics dashboards. Seeing tokens being burned and having the Total Supply getting shrunk, is providing a positive effect for players and investors as the scarcity of the tokens should improve their worth and finally, that should get reflected in the price as well. Starting from having the burning numbers displayed, there can be DAO proposals or other initiatives to put more assets on fire, lower the supply and hopefully strengthen the token price.
Other tokenomics
At the same time, there are some tokenomics reflected better in Splinterlands for $SPS, that should be transposed also on Genesis League Sports for $GLX. Here are the tokenomics indicators presented either for both assets or only on one of them and should be ported on the other as well.
- Total Supply - something interesting here is that until a few days ago on GLX it was showing an amount above 1 Billion, while now that was updated to around 81 Million tokens. Quite unclear about it, maybe this is the Circulating supply but if so it should be clearly named on GLX and maybe do the same on SPS.
- Total Liquid
- Total Staked
- Market Price
- Market Cap - presented only for $SPS and would be needed also for GLX.
I think that burning is the most used mechanism to fight against unreasonable supply and for sure both Splinterlands and Genesis League Score they overkilled it by pushing that too high. The supply should be well-sized thinking also about bear markets and not only bull ones in order to keep the project alive and appealing over time. Thus, I think that on the tokenomics we should also have a Burned Supply indicator and the game teams think about how that can be achieved one way or the other in order to ensure sustainability and ultimately survival.
Come join the amazing world from the Splinterlands!
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Better than burning is creating less inflation in first place! E.g. dropping millions of GLX tokens to people not even interested in the game (not all Splinterlands players are equally interested in soccer) was maybe not the best idea.
Also flooding the market with tokens before they have any utlity is not so helpful I guess :)
True in every point. I still hope that the game will kick in soon in order to give it context and start having use cases for the assets. Until that happens the flood will not benefit anyone and I don't see a way to capture any value. Still, I believe that when Goals will Go Live and new users will onboard, the price will improve if no other bulk release of tokens will happen.
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You say everything correctly, but there is one problem - the command does not give a fuck to users!
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This is very important to control demand and supply of any token, if we see 2 year back a game named "Axie Infinity" ruled over the play2earn games. But the wrost thing was they were not able to control their supply and after that that project was dead. Hive is a best platform I have ever seen because their formula of author and curator and then power up and HBF, it is very useful to control supply of hive.
In my view the number of token in any play2earn game has a lot of meaning. That the number of token determines its price. For this reason, the supply of any token has a very negligible impact on its value Therefore, they should somehow manage the burning of this token and minting them .
Yes, Every project owner should be transparent to their investors/users, Burning mechanism boost the confidence of users/investors into the project. @Splinterlands Should look to this and add burning mechanism for the users in tokenomics.
I am eager to try out the new tower defence... But I see you've got to pump in some of those card packs.. And 500 is a bit much 😂
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