What Will Burn in Splinterlands?

Something big is coming to Splinterlands ecosystem. The veteran Splinterlands players are sharing some tweets about the upcoming "burn" event in the game. So far, we have not received any official announcement regarding the details of it, most probably, we will learn about them in June.

I want to consider the possibilities and the pros and cons of each one of them.

1- Burning DEC (Most Probably)
2- Burning SPS (Quite Likely, too)
3- Burning VOUCHER (Only If SPS burn happens)
4- Burning NFTs (Not very likely)
5- All of the above ( I do not expect it )

Let's talk about them

Burn DEC, Keep PEG ⚖️

Fundamentally, 1000 DEC is supposed to be $1 under normal circumstances. However, the peg may not be held successfully in harsh bear markets or over-hyped crypto bull market conditions. While the market is still in a consolidation phase, the peg of DEC gains more importance.

To be able to keep the peg strong, the team may choose to burn lots of DEC and try to sustain the peg of Dark Energy Crystals. The strong peg will also show a positive impact on the price of SPS and the trades on the markets with increasing motivation among players.

In my opinion, the majority of the burning budget should be allocated to DEC's peg if it will be distributed among different Splinterlands tokens. I would allocate 55% of the burning bag for DEC.

Burn SPS and Stay above $0.02

Since the beginning of the community airdrop program, millions of SPS have been injected into the game and Hive-Engine open market. As a consequence of bear market conditions, global risks, and increasing tension among players, the SPS token has experienced lots of sell-pressure on itself. Personally, I would expect SPS token to be traded above $0.05 while Bitcoin is at 27K and the market is moving sideways.

I think the burning event may also include SPS bag as the token is traded for all-time low levels which is pretty undervalued for me. As you may know, unclaimed SPS tokens will also be transferred to DAO if the players do not claim before the deadline.

Fewer SPS in the market and higher incentive + utility to the token may yield pretty fruitful results eventually. To take a firm step, some SPS may burn in this event. Ideally, 30% of the burning budget would be okay for that.

Burning VOUCHER for Scarcity

Voucher tokens are collected in 2 ways: First one is staking SPS tokens and the second one is having a Splinterlands Validator Node.

Each validator node brings 4 vouchers and every day 20,000 Voucher tokens are printed for them.
Also, 20,000 Voucher tokens are printed for SPS stakes.

According to the staking calculator on SplinterCards, it requires 116,000 staked SPS tokens to get rewarded 4 Vouchers daily.

Obviously, Vouchers are valuable and useful in the limited-time offers. The fewer Vouchers may require more SPS to be staked for players to jump into exclusive events.

Would the burning bag be used only for Voucher tokens? I do not think so. However, allocating 15% of the total burning budget might be a good idea to turn every token green on the fifth anniversary.

Other Burning Possibilities

In my opinion, the NFTs will not be the main focus while DEC is below the peg and SPS is losing its value day by day. The required action is to strengthen the trust in the tokens by burning, adding more value, or initiating a buy-back system for them.

That's why %55 DEC > 30% SPS > 15% Voucher burning system may affect the market and the sentiment very positively. The fifth-year will be great for the game for sure. As usual, the team is preparing something astonishing.

Do you have any guesses?

Posted Using LeoFinance Alpha