RE: SPS Proposal - SPS.DAO should stake an additional 28,000,000 SPS for a total of 30,000,000 SPS
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I think ideally the players are staking SPS for player staking, tournaments, governance and other reasons to stake as opposed to purely yield.
Players are inherently able to move faster than a DAO in their positioning for yield, so I would argue that the DAO has a fiduciary responsibility to do relatively safe investments or only those investments that will specifically benefit the ecosystem (preferably both).
The DAO should be excluded from proposal voting - it already has 2 mil staked SPS that doesn't seem to be screwing anything up. But worst case, the DAO staking more SPS requires more engagement and voting for a proposal to carry. I see that as a positive and not a negative.
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i see the DAO as a Bank. I love banks but if my bank competed with me directly in my field, id tell them to fk off! they make $ through me from loans. Banks can't move as quick but also have longer time frames / more choices etc.
SPS is for voting! We are gunna have to battle ideas we believe in such as do we think your proposal is worth while / should bots compete in tournaments etc.
You wanna put pressure on me to take my 3 million stake elsewhere. I'm not for it. In fact thinking about it, i might buy more SPS just so your proposal doesn't pass! hahaha
edit: Right now i feel i can have my cake and can eat it too. find another way.
So - out of curiosity - what would your plan be for the DAO funding rewards when that time comes?
The intent of this proposal is for the DAO to accumulate as many funds as it can during this period where the whitepaper is funding the rewards. To me, it's especially important in the short term because of the GLX opportunity, but I also think that the DAO will be required / motivated to start supplementing rewards as soon as 3 years from now.
So - if you do not want the DAO to take advantage of this period to accumulate as much capital as possible so that we can (ideally) fund rewards off of the interest of our future investments, what would your alternative strategy be?
i don't have the answers except to maybe start building the infrastructure for a banking / loan system for players needing staked SPS and for us who just want more .....?
What i do see is 6.3% less reasons for me to want to keep my SPS in a voting system which already has things against it - like 4 week lock up and better returns elsewhere etc.
Maybe it's just timing. The general public is now allowed to come up with all sorts of ideas and this proposal gives us/me less reasons to want to actively be involved in these ideas.
I wonder, as the return on the staked SPS becomes lower, who would be the voting peoples? would this help or hinder the game? 🤔
ultimately i want the best for the game also, So if everyone votes for this then clearly i'm wrong and should just shut the fk up 🤣
See the response I posted above this one to Holozor... While you are correct that you would get 6.3% SPS from staking, the value of that SPS would also be worth 6.3% more (all else being equal).
Tend to agree. The DAO was "balanced" by the initial distribution of SPS as per the White Paper. To give it more "stake" compared to the community that sees staking rewards as "for them"; not "for the DAO" seems like a haircut, and a decline in potential rewards for those that HODL and accumulate more SPS.
Pretty sure I heard that the SPS DAO had yet to receive it's rewards from the Whitepaper but that is really a separate discussion.
The DAO (imo) needs to start earning yield on its capital. It will need this to be sustainable in the longer term. By definition, we as SPS stakers are owners of the DAO right down to voting proportionately based on our SPS stake what the DAO does with its funds.
I posted a much longer reply to this under davemccoys replys to MichealB but essentially, the DAO soaking up some of this inflation during the period of high inflation goes a long way towards reducing the liquid supply of SPS and thus, if demand remains constant, raising the price of SPS.
Otherwise we're looking at SPS with a market cap of around $25,000,000 right now and our 'numerator' of the liquid SPS out there is growing by 30,000,000 a month. That's roughly 3% more liquid SPS a month at current rates. That means that all else being equal, SPS will go down 3% a month.
We definitely need to solve the demand problem, but the SPS DAO soaking up these funds takes them off the market, reduces the inflation by saving the funds for later when the community really needs them and will help in the short term by stemming some of the issues with the fact that the current distribution of SPS far outstrips the demand for it.