RE: SPS Governance Proposal - Price Validator Node Licenses in DEC
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IF they can get DEC back up and it costs the same amount or more why would us node holders be upset? Yes if it costs when buying with DEC AND it doesn't impact DEC price very much at all then i guess we'd have issues.
For example if they made the price a flat 5m dec per node I can't think why any node owners would have an issue it would cost $2700 for a node... even the 5 node buyers in tranche 2 didn't spend that much. And the other 5000 buyers all spent like $1600 or less.
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Thats a huge IF and IMO it would make nodes cheaper on the secondary market almost immediately. Can we also talk about how Bulldog posts about the DEC price the day before 2 huge sinks are proposed? or him buying tons of vouchers before they announce that all RW packs will need one? What about when he scooped up all the blast fire monsters before Jacek stats were wildly known? Lots of fishy stuff going on and I think we want things explained in baby words. ALSO WHY WASNT ANY OF THIS ON THE TH that ended 30 mins early?
I Agree with you hewitt. This proposal is gambling with our assets in the hope that something will happen. We already have examples currently out in CL and TD packs that were supposed to encourage DEC back to peg but are not working. The same is going to happen to licenses. If they pegged it to a fixed USD value that can be payable in DEC then that is better, but to fix it to a certain number of DEC does not make sense.
I mean...if CL and TD failed to bring DEC to peg, then...
"maybe 3rd time's the charm" - SPL Team
Jarvie, I will answer part of your question.
Because node holders get SPS and that SPS would be worth more and more as it went up. This rising of SPS would partially occur (or be aided by) the mechanism of buying the nodes in SPS. A lot of SPS is consumed by both nodes and RW.
In other words the nodes will sell when the SPS rises. SPS rises as more nodes are sold. Its a flywheel that Matt discussed correctly.
When you remove SPS and use DEC instead (a stable coin that is capped) to make the node purchase, then you are burning DEC and not SPS. While that in theory "could be" the same thing, there's absolutely no assurance that it will be. DEC held by the SPL business could be used up first for instance. NOTE: of course that would be their right to do, its just not what people THOUGHT was going to be the use of funds for purchasing nodes.
So removal of the direct flywheel mechanism using SPS for purchase removes a big guaranteed consumption of SPS in the future.
The only argument I could see for scrapping this mechanism is they feel that people will never pay the prices the nodes are listed for otherwise. If this is the case, I'd rather them be honest with us, tell us what changed to make them think nodes are now overvalued and won't sell in SPS, and then we as a community can discuss.
My point is they can't have it both ways. If they overpriced the Nodes, then we should have an open and honest conversation. If they didn't overprice nodes, then it works perfectly fine the way its structured. Using nodes or Riftwatchers (or cutting the amount of vouchers) to prop up DEC values, does nothing but artificially cover up the fact that DEC is down.
DEC's down for a reason and I can list some of those reasons (as can others), but the issue should be dealt with by creating more demand by bringing in and retaining more players. These artificial mechanisms only confuse and obfuscate the real issues. In my opinion, if they use their time and energy to grow the game, then all of these tweaks and twists/turns become irrelevant. And everyone would feel more confident.
simple things like changing season rewards to SPS and lowering DEC pool inflation could help.