RE: SPS Proposal: Allocate up to 30 million SPS to pursue exchange listings
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In addition to the points @davemccoy makes, the Council worked closely with the team to make sure they are committed to providing a fun and welcoming experience to any new eyes exchange listing(s) would bring to the project.
The team has made a lot of recent changes to make the game more accessible to players (Season Rentals, simplified energy system etc) and they expressed their understanding that more needs to be done.
We'll continue to work with them to identify opportunities for improvement in this area... and now we have a commitment from them to put more resources in as well.
I think with Land bringing increased utility to cards, additional gameplay opportunities with Land and Tower Defense coming online, a generally rising market and a commitment from the team to make sure we retain a higher percentage of new players that the timing is absolutely right to get some additional exposure through exchange listings.
marketing would have a better effect in my eyes. most people are on exchanges to buy low, sell high. they arent on there to look at tokens and then go check out the game/projects of the tokens. How did we get all the new players when the last bull market happened. We got them through marketing and so far that has been the best avenue of signups.
I agree 100%, but you can't pay for marketing with SPS. And if splinterlands ever tried to sell 30 million SPS in order to fund such marketing efforts it'd be impossible as well as tank the price in the process without it being listed on an exchange.
Exchanges provide liquidity, something we don't have right now.
If the dozens of Millions of SPS per year we are allocating to Liquidity Providers isn't actually giving us liquidity, then maybe we should reallocate the SPS away from LP reward pools and make a better use of DAO resources. In that case, liquidity via exchanges could supplement the drop in liquidity via LP, while giving more visibility. I would be in favour of that. But as-is, this feels like it's ransacking the DAO for a benefit that is likely to be short-term and increase volatility.
Also the argument has been that the current low price of listing is a reason to act now. But if the public trust in these intermediaries is changing, listing prices might not spike the way it did last time? Also, if we pay for a listing at current SPS prices, and SPS price does increase 2x (or more), then how much DID we actually pay for that listing? The value of those tokens, which we are just giving away, goes up with it.
I think we're looking at two different things here.
Again, what is the value of 30 million SPS when you are unable to sell them?