RE: Cut SPS Max Supply and Emissions

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This is a "feel-good" idea that would actually have terrible consequences if implemented.

Another project recently tried a similar idea. They cut token rewards in half and at the same time cut the prices of their products that were purchasable with the token in half, so everyone still had the same production of in-store buying power.
(That's even better than the idea here since rewards were technically not cut at all since you still earned the same buying power in-game)
This is what happened

image.png

These are daily candles, the blue arrow is the day they cut inflation.
You can see the big green hype candles for a day or two, then the price normalizes at about 30-40% higher than it was. Eventually dropping back to where it started and is even lower now.
In effect, all of the assets that generate the token now produce less than half the value that they used to. And all assets in the game are worth around half as much. So instead of the slow downtrend they were seeing, they accelerated the downtrend by this attempt to bolster their token price.

If your idea were implemented, we would need SPS value to increase by 33% for rewards to maintain their current value. If you are earning $1.00 in value currently (45 SPS x 0.0222) after the change you'll get 33.75 SPS, meaning SPS would need to be worth 0.0296 in order to maintain the $1.00 value. That's a 33% gain required just to break even on this.

If that doesn't happen and/or the price doesn't hold, then we just accomplished a rewards cut for everyone here. Making holding assets here less desirable, and making outside investment even more unlikely since the ROI is worse now.

We don't need less SPS inflation, we need more demand. We already have a bunch of things in place or coming soon to help increase demand. Cutting people's rewards right now could literally be the death of the ecosystem by accelerating the downtrend right before we are about to have a reversal.



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