Splinterlands - Splintershards SPS needs more use cases in order to capture real value
In Splinterlands play2earn game on the Hive blockchain, the governance of its entire metaverse is ensured by the Splintershards (SPS) cryptocurrency. While I believe in its potential to gain or better said to regain value considering from where it has started from ($1.07 ATH on July 28, 2021 based on CoinGecko data), its price remains relatively low and even plummeted lately. The reasons behind this lack of appreciation are multifaceted and while I am trying to uncover them, for sure there is so much more needed to make SPS great once again.
Governance (only) purposed
First, SPS is primarily used for governance in the Splinterlands game, and not an attractive instrument for speculation or investment purposes considering its limited listing. It is used to vote on key decisions (even if I find them quite limited and not enough community from the community itself) that affect the development and direction of the game when it comes to using funds from the DAO Treasury. This is a good real use case and transparently implemented within the game, but I am affraid it might be the only one still keeping SPS from going down even more if possible (from the current low price of $0.024).
High supply
Second, the supply of SPS is very high, which can put downward pressure on the token’s price. With a supply of 3 Billion tokens and singular use cases, it simply discourages any investor or stakeholder to invest more in it. I wrote before that it would be great to have some burning mechanics implemented in different ways that could bring the supply lower and in line with the current and a realistic potential userbase for the game.
Bearish market
Another factor contributing to the low price of SPS is also the broader cryptocurrency market which has been volatile in recent years, but also entered a bear cycle. This impacted quite heavy the demand for SPS, as investors prefers to hold stronger and more widespreaded assets in their portfolio.
I see that the solely niche use case of Splintershards as a governance token within Splinterlands, it simply limits any potential growth of this asset. Thus SPS should extend to more use cases in order to be able to capture real value and trully repay its stakeholders and players for the trust given to it. Here are some directions in which SPS could dive into:
- Get new listings into Top Exchanges, preferable Binance in order to really make a splash.
- Have a more transparent DAO Treasury with a Dashboard implemented within the game for SPS holders to track its growth and be able to maybe even make investments using those assets outside of Splinterlands or Hive. Transform the DAO Treasury as a passive income fund that could provide periodic payments to SPS holders by putting the funds at work in the right place (for example I would use some funds to exchange assets for HBD and deposit those into the Savings account for 20% APR).
- Add more utility for SPS within the game dynamics like enforcing a staked amount as a prerequisite for Leagues and enabling other features or gameplays based on that.
- Have some clear burning mechanics for SPS, either from expected trading opportunities, promotions or other incentives to do so
What do you think could be other use cases for SPS that could give it more value?
Come and join the amazing world from the Splinterlands!
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I prefer to invest in cards rather than SPS because players need the cards to play the game. I have stacked 20k SPS because it is mandatory to participate in the champion league tournament. The power system will change, and there will be limits per league based on SPS stake instead of card collection. We don't know the exact figures per leauge, though.
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I was thinking of cards these days and maybe buy, max up and rent. But on the other side with the latest Chaos Legion release of 15 Million packs (or 14M), wouldn't also the value of cards plummet? I've started to lose faith also in the rentability of cards because of huge releases and increasing supply.
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do you think (or know) will it be the case in GL Goals GLX gameplay, too? (have to stake glx to enter higher level tournaments, cups) how i see, it is totally the same economy, token system (SPS=GLX, DEC=GLUSD, Voucher=GLGT) and usage cases look like the same, too.
i didnt see any point to buy relevant GLX (only point is getting GLGT as staking reward), how I don't see any point in SPS, except liquidity pools. (the only reason i have some glx (and SPS), too. pools. probably pools coming soon there, too)
i see it like you, gameplay needs cards, not sps or glx. anyway, what is your experience, which one is giving higher returns? SPS pools or card rentals, playing the game??? i see the SPS pools are good picks anyway. another usage case.
I don't know, but it is probable.
The most profitable option is to rent cards. Returns are similar to SPS, but cards are more resilient to price drops. I prefer to play with my cards though, because I like to play Splinterlands.
With 3 billion total print count, I don’t think it will reach back to it’s all time high at least for another 3 years. I really like the Vruz promo sale which incentivesed the sps stakers and also gave them an advantage over others. The proposal voting is important for the future of the game but investment wise it does not gives any direct value. Hope they bring new use cases that attract the mass to stake the token.
Yeah, Vruz was a blast and it was the first time I took any profits in last 2 years out of the game as I have sold them for about $60. A drop in the ocean, but at least I felt that I am not losing all this time for nothing.
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I read something this morning that the price of sps has decreased by 3 cents and a lot of people will want to take opportunity of buying the dip
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I think sps can still be good value. If it can get more of a function for its use !
SPS value is 0 / no one cares about voting! Constantly trying to attract value by the ears, limiting playable features - this is the way to nowhere !!!
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I think having more features using SPS in game would be better. Maybe paying in SPS for fees rather than DEC and give people a slight discount on that? It would make people consider more than just staking or selling the SPS. The DEC has yet to go above the peg yet.
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Splinterlands focuses on DEC pegging hoping that it will also have effects on SPS. I don't see that happing just because of that, we need more use cases for SPS alone.
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Thanks for sharing! - Underlock#8573
