New Use Case For SPS in Land 2.0
In this week's Splinterlands announcement and the following town hall, there weren't all bad news, as people might be tempted to interpret things especially under the influence of their own state of the mind after a long a tiring bear market.
In this post I won't make any health references, but I would still like to bring to your attention something that Matt said in the town hall and which probably kind of escaped many, given the multitude of information.
And we are talking about a new staking option for SPS that is being designed for Land 2.0.
The flywheel effect seems to currently be the centerpiece of a well-functioning Splinterlands economy and quite difficult to be put in motion and especially maintained while demand is low during the bear market. Under these conditions, introducing new use cases for SPS is important, in my opinion.
We started by adding the staked SPS parameter that determines the amount of SPS rewards that can be won in ranked battles. But it seems it's not enough to stop SPS from falling.
I disagree that the full effort should be put into bringing DEC to peg, as some believe. We might reach that point and drop back below if demand is not there, as is the case during a bear market.
If we help the price of SPS too by having more use cases, that in turn grows the amount of SPS rewards in DEC worth, which can help push DEC to peg quicker too. In this case we will have two categories of users (or rather use cases). Those that will keep or amass more SPS for its use cases, and those who will amass more DEC for its use cases (often by selling liquid SPS rewards into DEC). The two categories of users are not necessarily distinct, but often there is a priority people will follow until they achieve their targets, then they might switch.
Having all or most boats row in the same direction toward DEC will continue to have a bleeding effect on SPS, without the guarantee that the flywheel effect will be reached and maintained while the market is not ready for that.
I can almost guarantee that some investors in crypto games will check the price evolution of the volatile token of the game to decide whether to invest in an established game or not. A low price may be considered a good entry point, but a never ending downtrend can scare many new investors away. That's why, in the bear market when demand is lacking, I believe new use cases for SPS are just as important as trying to bring DEC to peg.
We don't know much about Land 2.0 yet. We don't know where SPS would be staked and for what purpose, or how much SPS will be needed. But personally, if we have DEC staking as reference, to some degree, I believe the new staking option is needed.
At some point, FOMO will kick in for SPS... Can you believe we have only about 3 years until SPS inflation dries out completely? Unless the DAO decides differently. 2+ out of 5+ years gone already.
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More use cases for SPS is definitely good. Planning for land 2.0 is also nice. But I just wish they release 1.5 first, and see how it does. Either way, I do hope both DEC and SPS price increases soon.
Well, Matt is not involved in rolling out Land 1.5 (or wasn't until he became CEO). He can plan Land 2.0 while others get Land 1.5 ready.
Hmm I am less optimistic given the latest turn of events now. I used to think that the replacement of CP to staked SPS for battle rewards would boost the value of SPS, but the response has been lacklustre. As long as the game isn't friendly to beginners, it would be hard to attract new players.
I believe the DEC staking necessities for land also worked/s against the price of SPS since many players sell SPS for DEC, including myself with liquid SPS. Once (if) those needs are fulfilled, a big sell pressure will be relieved from SPS.
I also agree with you, new staking option will be beneficial for the whole ecosystem of splinterlands.
I hope so. What's clear is that one option was not enough despite thinking it would be.
So I think Splinterlands player should have new staking options or even clamoyr for it
Nice one!
All these add to the complexity of Splinterlands, but this bear market seemed more difficult to pass for Splinterlands than the previous one when they were much smaller (and more focused).
I don't really think having SPS staked for land makes sense. But I don't really have land so I don't really care enough to worry about it. I do think SPS needs more use cases though because they are so focused on trying to get DEC to the peg.
As long as people (including myself, with liquid SPS) are selling SPS to get DEC, neither target will be achieved: SPS will continue to go down, and peg will be harder to reach because the DEC worth of SPS rewards goes down with the price of SPS (unless DEC moves further from the peg too). Of course, if external funds are pushed into DEC or SPS, it's a different matter, but will they? Nothing should be taken for granted in a bear market.
Cool! Thanks for the sharing
Sure, you're welcome!
https://twitter.com/jewellery_all/status/1707520238072545557
Thanks for sharing.
What happens when the inflation dries out? Will there be some other rewards for playing?
I have picked this post on behalf of the @OurPick project which will be highlighted in the next post!
The DAO will be responsible for that afterward. Whether from its own funds or there will be a vote to change the tokenomics of SPS to keep printing more (risky!).
Thanks for picking my post for today's OurPick issue!
It will be interesting times. Lets hope not more SPS is printed.
Yes, I agree. I wouldn't want more SPS printed.
I totally agree on you fully on this. The Staking option is cool
That would be another staking option, for Land 2.0, from my understanding.
https://twitter.com/lee19389/status/1707738064645169507
#hive #posh
Thanks.
Welcome
They seem to be pressing more and more use cases for DEC to get to PEG. Land, Rebellion, Burn cards for Riftwatchers packs. I am tempted to buy DEC for Rebellion at the current value .00069. Which would mean my 100 packs would cost 345$ at 5000 DEC per pack. Lots of opportunity and lots of Risk.
It's a great price per DEC. My focus remains on Land (including staking DEC on land) for the time being and a good while from now on. That makes Rebellion a hard choice to be involved with at this point, for me.
Hi, @gadrian. Thank you for this info on SPS designed for land. It sounds like the cautious way you mention is the best way to handle SPS especially when not enough is known about it. That is exactly how I would proceed if I owned SPS designed for land. Have a great week! Barb 😄⭐⭐ !BBH !CTP
@gadrian! Your Content Is Awesome so I just sent 1 $BBH (Bitcoin Backed Hive) to your account on behalf of @adcreatordesign. (1/1)
Thank you @bbhbot 😊