RE: SPS Governance Proposal - Hire Steem Monsters Corp. to Develop a Bitcoin Halving Promo Event
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I understand some of the comments in this post. The cool thing is this will either pass or fail as a DAO vote. If it fails, then its not a big problem for the company as they will get all the revenues. If it passes, then the DAO is adding value to the game if this is successful (by successful, I think $400k in total sales).
As a player I love this, I can buy exactly what I want (or don't buy anything if don't want to), and I can receive free perks from the lottery and the leaderboard prizes if I do participate. I also love that the card print rates will be exactly what the demand for them is, so if people aren't excited about it then I will own shorter printed cards.
As a DAO voter, I can see that we are taking a chance to spend $200k in non-SPL assets. I look at it like this:
If we hit $400k in sales, then we retired $400k in assets for $200k - which should lead to most likely to a) reduction in supply of DEC-B and vouchers and b) a need to buy SPS to get the DEC since we're pretty much in balance.
If we do $200k in sales, then we would've probably rather had the money flow to the team directly without DEC-B or vouchers.
I personally think this is worth taking a chance on, because our risk is somewhat mitigated since we want to see the team do well anyways. I do think we will easily do $200k in sales, and the chance that we hit it out of the park and do $400k is realistic if the 2 cards are good.
There's also one more reason why I'm ok with taking a chance. We know the team plans on doing 5 total of these over the course of the year. Its better to find out what will work and what doesn't, rather than just having us fight/debate/complain/etc for each and every one of them.
Put another way, if it works well, then we have a good model for the next 4. If not, then we probably overpaid by a slight amount by taking the chance.
As I said though, the good thing is that this vote can pass or fail and its not a problem, its really what we want to do as the DAO. And as a player, I'm loving the way its set up!
You don't want to support the SPS listing but want to support this nonsense. 200k USD for just creating 2 promo cards. Trust me if those cards come into the shop, only 5% of people will buy them. They won't even earn $10k from those promo sales. All are leaving this game, selling their assets in loss. Who would buy those promo cards?
So your point is that we shouldn't do this because "All are leaving this game"? What would be your plan for the DAO funds? Do a give away for all remaining players?
As I understand, DAO funds are there for the player experience. A new card is better than none at all. To me, it's better to have these kinds of events than just be stagnant for half a year waiting for the new pack to release.
Also, the price is not as much for the remaining players, which is good in my opinion. I think less people would buy this if it's a promo card worth $300 each like the Neutral summoner but $31 and $3 for each as commemorative pieces? I think it's a good idea.
I for sure will buy this one regardless if it's a strong card or not.
ok thanks for the input. We will see if $10k is in fact the right sales number or not. I think you're a bit low, but the great thing is we will find out soon enough either way :)
And I also recommend that you vote too. Nothing wrong with everyone voting for what they think is best.
I actually agree with you. In any investment, there's a risk. The only problem I see in this is that there's too many "IFs". I also don't have the information on what percentage and chance we could get to get the $200k to break even.
HOWEVER, I think it's good to consider this. I hope they had some sort of breakdown why they would need 200k for two cards. This kind of prices each at $100k in which, say $20k was used for the artwork, then maybe DAO can just outsource the artwork to someone for $2k each saving $36k in advance.
I agree there are a lot of "ifs". That's part of why I support it, because I'd like to get some of the "ifs" determined, we do have 4 more promo card events coming in the future too. Thus I'd like to see a real life example of how this works.
On the breakdown, I think its purely revenue for the team. Obviously they spend money to make the card and implement it, but its done by people already on their payroll. So there is no incremental costs per se, but there are expectations of revenues they need for ALL THEIR employees to be paid (and other expenses like rent, electric, servers, etc).
So this is really a choice of whether the DAO wants to find out if this will work and be a good use of our $200k in non-SPL funds (ie does it generate a lot more assets burned?) or would it be best to let the team just sell the cards for DEC/Credits and get all the revenue.
Either way it will happen though, the question is can the DAO get a bang for its buck or not.
Thanks for the thoughtful conversation, its great to see here Kona!
I agree. The only similarities I see in this WHOLE article is "$200k seems too much" which I partially agree. The reason why I agree with them is, I think majority of these people, including me, never owned a huge company. Therefore, we don't have a basis if $200k is a big amount for a company or not. For say, a simple restaurant, yeah, that's a big amount but Splinterlands is not a small simple restaurant. It's an international corporation with worldwide playerbase as its audience.
Majority also probably don't know how DAO has right now (including me again). So, say DAO only has $1M in funds, then yeah, $200k is a bit high since it's 1/5 of the company funds or 20% of their entire fortune. HOWEVER, say the company has $10M in funds, then $200k is 2% of company funds which is miniscule for an "experiment" such as this.
Both my examples above are also "ifs" but personally, I do want this to proceed since I want to have some memory for this halving event. This would be my first halving event and I am excited about it and since Splinterlands is the reason why I got into crypto, I'd like to have a card commemorated for it.
I hope there's at least the Halving ability on both cards. Halfling Alchemist's lore is funny and knowing that it had the "Halving" ability because it was a "Halving event promo card" makes it even better. Lastly, Halving happens once every 4 years so splurging on this (say 200k was really expensive for the cost) is actually fine for me.
You make good points and I like your thinking.
In the case of the DAO its roughly $10m in value. But most of that is in SPL assets, so its a bit misleading.
As Matt said in the post this $200k would represent about 8% of the total non SPL assets. So that would mean we have about $2.5m in non SPS assets, and we would be spending $200k of the $2.5m.
As for the halving ability, I also hope we have that or at least a variation on it, like a halving of health or speed. That would be fun and cool too.
I guess we'll see what they do on the card, but I agree they should make it special!
And thank you as well for the civil and constructive conversation Kona, its great to hear your thoughts! :)
If $200k is about 8% of the company's non-spl asset, and assuming, at worst case, people only bought like 50k out of 200k so 1/4 of it, then the expense is like 6% of the company asset. For a commemoration event, that's good enough and was actually lower than what I was expecting.
Spending 6% for a trial run for a project is decent. Even if at worst, NO ONE buy anything for this, it would not make the company go under or be on the red so I think it's worth a shot. At best, company breaks even so that's a free test run for the next 4 projects. Of course, for the best best, profit.
Based on that, I see that there's little to no danger doing this side project and it also gives a good view for future projects, like making a bottom line or an idea to use for the next 4 projects.
Oh, and thank you as well for being cool with the questions and the new information and have a nice day.
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I'm all for this minus the Splinterlands team trying to put up so called 100k in their own assets and getting paid for it instantly. Which for whatever reason ALWAYS seems to be the case. I don't see us burning 200k worth of value and instead just creating yet more inflation with this current setup.
I think its ok to vote no on it too. I don't mind seeing if it works as Matt thinks it will. At the same time I'm also happy to see the team get all the sales in DEC and Credits for the team needs (without the extra prizes).