# RE: Splintershards (SPS) Validator Node Overview & License Presale

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OK. I'll show my ignorance (or my bad math)

3,375,000/60,000 = 56.25 SPS/month = 56.25 * 0.12 = \$6.75
20,000/60,000 = 0.333 vouchers/day = 10/month = \$15
Total = \$21.75/month

Presale cost = \$1000 in SPS + \$750 for vouchers = \$1750

PRESALE ROI = 1750/21.75 = 80.5 months = 6.7 years or 15% interest rate

Why would anyone want to buy a license rather than just staking SPS?

Potentially, it would be because they don't expect 60K licenses to be sold -- but, in that case, why is the team offering so many?

The first tranche 4 would have earnings of \$65.25/month for a cost of \$5500 (assuming vouchers at \$1). Again, an ROI of 5500/65.25 = 84 months.

Assuming that tranche 3 sells out, the PRESALE ROI is cut down to 2.2 years but that is still less than a 50% interest rate -- without considering the running cost of a node.

What am I missing here?

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i think the hope is if SPS goes up in value its gets really attraktiv to hold on to the license.

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If 60k licenses are sold immediately then it would be a tremendous amount of SPS burned and sky high SPS prices (not likely in the first year). So I think you would have to account for that dynamic when modeling your ROI DW.

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If you assume that all licenses sell out right away, you can sell a license for 40.000 dollars making a 38000 dollar profit right away (if you buy during presale)
It will take a long time for all the licenses to sell out. Supply and demand will decide how long it takes to sell out. If few sells you earn a lot per month, if many sells you can sell your license. (withour considering the sps price)

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As others have commented, you're missing the fact that it is literally impossible for this many nodes to be sold without a tremendous increase in the price of SPS. The system is self-regulating. If the SPS price is low, it won't make sense to buy the higher priced licenses, so they won't be bought and the pool will be split among fewer users, meaning more per user. On the flip side, if the price increases then more licenses will be purchased so the dollar value of the total earnings will go up but will be spread among more people.

Assuming that tranche 3 sells out,

Keep in mind that, even if the max number of vouchers are used, it would require the entire current market cap of SPS to be burned for tranche 3 to sell out at current prices.

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good math broo.. but the sps price there seems stable.
what about it falls to 0.05😂

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It is not about earnings, it is about supporting the network and make it truly decentralised :-)
No man, seriously, it is well thought out, clearly Mat on the case, can't go wrong!

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