DAO DEC Report 16/06

Changes:

• I removed the credits.for.dec table, seemed like not the most useful information now that we have enough data for the average to matter. It is still available, if someone misses it, let me know.
• The average daily mint for SPS burn and cards now goes back to January instead of May to verify that there was a mistake in how DEC was counted before the audit in March. The number shouldn't be compared to last report.

In the 46 days since the DAO took over he credits.for.dec account about 560m DEC was sold, which is about 12m a day, an increase of 1,5m. The average stabilized a bit together with the DEC price, but we are now well past half the initial billion DEC, which leaves the DAO with about 1,4b DEC and 1b DEC in the reserves.

The average daily DEC income of the DAO picked up quite a lot and is now 567k, which is an increase of about 300k. The majority of which are escalation packs, which makes sense, considering DEC fell so fast that it is very close to the SPS discount on escalation packs now. Since the increase in DEC spending by the DAO increased more the DAO now loses about 11.5m DEC a day.

The average daily DEC mint from burning SPS is about 85k DEC, a total of 14m this year, but the majority happened in January. For cards it has been about 100 DEC a day on average, so nothing.

DEC burn details:

The burns are still stable at about 1m DEC a day. Keep in mind the API still doesn't allow reading of all accounts, so it is likely more. With regard to the DAOs daily obligations, which comes 5500 USD per day or, at course of 0.000255 for DEC, 21.5m DEC the burn would equate to 4.6%. By not burning the DEC the DAO could reduce its daily net negative for DEC by 8.6%.

For credits the average mint per day is 4.021k, so 4021 USD a day average income for the DAO, which is 73% of the daily expenses. This means the DAO is about 1.5k short of its daily obligations. Note that it is hard to track how many CREDITS are in player hands or how many are spent daily as it would require a lot of digging through chain data. For now it is enough to look at how much USD comes in for cash flow reasons. What is relatively easy to determine is, that about 3k USD of credit obligations are settled through the secondary market daily.

Lastly, some data on the land pack sale. The DAO offers a 5% discount if the packs are bought in DEC, currently 7450 DEC, which, assuming all packs are being sold in DEC, would equate to a 25k USD buyback of DEC, the amount of DEC depends of course on the price development.

Contrary to the above this is paragraph is opinion:
Personally, I don't think this is a great way to do the buyback for the DAO, since the DAO will accept DEC while it is moving up its bump and sell it over the coming months. This, yet again, opens the door for currency risk. I would have preferred that 5% of the sales are set aside and used for a buyorder at lower prices. As it was done it yet again incentivizes people to buy cheap DEC and unload it once it goes higher. In the end the DAO not only has the cost of the 5% discount, but it basically signals "we will buy a bunch of DEC, go get ahead and buy now and sell it to us more expensive later".

The TL:DR:

• The DEC course is worsening and with it the DEC outflow increases and does so faster even though DEC income more than doubled due to escalation pack sales in DEC picking up. A total of 560m DEC have been put back into circulation, which is more than 25% of the DAOs initial liquid DEC.
• The DAO earns an average of 4021 USD per day, which means we are 1489 USD or 27% of the daily obligations short of being profitable.
• Burns are still stable around 1m DEC a day and still do absolutely nothing other than making the DAO run out of DEC faster.