Why is no one talking about this? | SPS Staking

@Kxlm here! I'm back from a short break on the blogging front and am ready to dive back into the Splinterverse!

In today's post, we touch on a rather elusive subject, that for its level of importance, has been grossly ignored in conversations to date.

As the end of the SPS Airdrop draws nearer, many players are speculating the future value of the token and are weighing up their options for utilisation going forward.

Whilst the majority of the token's utility is widely spoken about, one important aspect tends to get overlooked, which is staking mechanics, for ranked battles.

So, let's delve into this topic further, to gain a better understanding of why it is soo important and how it might affect the future of Splinterlands as we know it.

🤜Let’s get into it!🤛

SPS Rewards Explained

The number one resource for a project's tokenomics is the white paper.The below is an extract from the official SPS whitepaper:

_{Source: Splinterlands SPS white paper}

Now, most of us are aware that you will need SPS staked, to garner the most SPS rewards in ranked battles, but what not many people know is that you will also have the option to stake SPS on other players as well! This function adds further depth to the game, providing more opportunities to stretch your invested time, attention and hard-earned coin.

The white paper continues to confirm that "Ranked Battles pool and the SPS Staking Rewards pool will work similarly to how the DEC rewards for ranked battles work currently. The SPS earned from the Ranked Battles reward pool will go to the player who won the battle, and the SPS from the SPS Staking Rewards pool will be divided among all of the accounts that staked SPS on the winning player based on their percentage of the total SPS staked on that player."

From reading this, one might think that the optimal approach is to stake your SPS on the top-rated players, however, there are diminishing returns, with "the more SPS tokens that are staked on a player, the lower the return will be per SPS token staked." This bodes well for the player who the SPS is staked on, but not so much for the investing.

Given that there will be two rewards pools at play; The first being the "Ranked Battles pool", which is the SPS you earn for winning a battle and the second being "SPS Staking Rewards pool", which is the pool from which rewards will be distributed to those who have SPS staked on the winner of said battle. I assume that from the separation in pools, you will be able to earn SPS from the Ranked Battles pool, even if you have zero staked.

Looking To The Future

Now that we have a better understanding of how the SPS Staking rewards will work, let's discuss how this might affect the future of the game, going forward.

The thought at the forefront of my mind is the importance of SPS, if you see yourself being here for the long haul. While new card editions will come and go, SPS is a finite resource. Although there are massive opportunities for card bargains, with the crypto market going through a slump, SPS should be (in my opinion) placed higher on the priority list.

Right now, SPS is trailing at a stunningly low $0.045 and could potentially track even lower. This is a great time to continue accumulating and packing your bag. As I said earlier, SPS is finite, but new cards will continue to be printed for as long as the game survives.

On the flip side, the SPS staking rewards incentivise players to continue growing the power of their deck through investing in cards. A stronger deck = more battles won = higher rating = higher leagues = more reward shares = more SPS & potential to attract other players to stake SPS on you = more SPS.

Conclusion

The Splinterlands team are constantly introducing new features which keep the game fresh and keeps players on their toes. As with every new development that comes into the game, there is a period of "testing the waters" and "feeling it out". Staking SPS on other players brings a new twist to the investment aspect of the game, which I love, as it adds another layer of community building and engagement. I look forward to these changes being realised and will continue stacking that sweet sweet SPS.

Until next time...

God Bless~

-Kxlm

🤜 LETS GROW TOGETHER 🤛

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