Greetings from The Legendary Canary!

For today's reflections, let's have a think about what is likely to happen when we get the much-anticipated rental system upgrade for Splinterlands, based on the current state of the market.

1. Current low market participation

Compared with the thousands of active accounts on Splinterlands, active renters & owners participating on the rental markets are numbered in the hundreds (though a little old now, see https://peakd.com/hive-126911/@peakmonsters/peakmonsters-rentals-2-0-a-preview for a general idea of the numbers)

2. Excessive yield targets versus realistic targets

With the minimum daily rental rate being $0.001, this effectively sets a price floor under which it makes more sense to buy rather than rent.

People listing their bulk regular cards at the minimum $0.001 daily rate are being rather optimistic that anyone would bother taking up their offer. For regular foils that cost anything less than about $0.35 per bcx, this is implying a yield of well over 100% a year. No sensible person would bother to rent such a card - especially at the low end of the market which is very price sensitive. They would just buy it outright instead.

3. Low quality offerings - people potentially treating the rental market like a liquidity pool = big mistake

The fact is, most people who are lending on the market are trying to earn yield on cards that they themselves either don't want or don't need. In other words, their cards are often low-value bulk, indiscriminately thrown onto the market.

This may be the most likely behaviour because we are conditioned to things like liquidity pools. You can be indiscriminate with something like a liquidity pool - your tokens are fungible and you can simply throw some tokens in, set and forget. But such laziness will not be rewarded in a rental market with NFTs.

Most participants currently have not curated their offerings, escrow and daily rates so that they are actually attractive to the renters they are trying to get yield from (either by pricing cards really well, or actually offering higher level cards, or some combination of both). When the new system makes it even easier to list cards in bulk, this situation will be even more prominent. But for those who pay attention to their offerings, this represents a very great opportunity.

This is because the current rental system makes it difficult to curate properly because it is so time consuming. The future system is expected to make things simpler. But at least in the short term I am expecting that yields in the low-end of the market will completely tank, or the demand simply won't be enough to soak up the supply.

4. The coming 'Bulk-ocalypse'

This is because the phenomenon of bulk cards being put on the market will greatly increase when the new rental system is released and thousands upon thousands of cards will be put onto the market with the proposed 'one-click' system. I am anticipating that the number of cards on the market will increase by at least an order of magnitude.

When the time opportunity cost for owners will be greatly reduced with the new system, it provides huge incentive for people to indiscriminately dump cards onto the market. This is going to be a boon for everybody involved. Renters will enjoy depressed rates for the foreseeable future, and owners lucky enough to find a renter will start earning something for little to no effort.

I believe that yields will only recover when the player base increases by a corresponding order of magnitude. It is a lot easier to dump cards than it is grow the player base. Granted, the player base is growing at an increasing rate as well; somewhere around 9% per month according to recent team AMAs. But I still expect that this will be the state of affairs for at least the next year or so.

5. The Legendary Canary offering

Because of the thoughts outlined above, this is why The Legendary Canary strives to rent out cards with:

Competitive daily rates
Generous contract terms
Useful abilities you actually want!

In practice that means I focus mostly in the gold foil space, where there is less 50x less supply than their regular foil counterparts. While obviously this means focussing in on legendaries and epics, even single BCX commons & rares are relatively hard to come by.

The other space I play in is with summoners generally, since they are the gateway for all players to access the other cards.

My hope is that I can make these important cards more accessible for savvy players to use, while building a steady income stream to re-invest into the game. So as the game goes from strength to strength, I hope I will be around to grow along with it.

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Today's Featured Card

Would you be interested in a ...

Card ID: G3-85-2H1RBB360W
Escrow: $0.42
Daily Fee: $0.03
Min/Max Duration: 1/180 Days

Today's featured card is one that flies under the radar for most players and does not get much love. However at the max level, the combination of silence + poison with a strong magic attack means that the mushroom seer packs a deceptively nasty punch. In combination with a tank that has void/reflect, it can be the difference in a drawn out fight where poison damage may have the final say.

A personal favourite of mine, and available for only $0.03 / day !

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A big THANK YOU to my supporters!

Whether you are a human, an alt account or a bot, as always I appreciate your support!!

Ostrich Tier (>$0.10 per day)
@clove71
@creepykiller
@hossainbd
@jacekw
@mac-spacer
@planosdeunacasa
@shinychamp
@steemmonstergirl

Eagle Tier (>$.01 per day)
@alexcaniggia
@alinalazareva
@apy
@ashleesplin
@briatore
@bynarikode
@clev
@dmente
@fantasma113
@fitzmagic
@frosta
@gaarakazekage
@gambit0
@germansailor
@gingerbyna
@goliathus
@haydae
@hotterthanhell
@ilboss
@jamys
@johnhtims
@johnhtims.life
@juanao10
@judibana
@legolas01
@lestrange
@mariangies
@megaeoz2
@megaeoz4
@mellofello
@monster.oo7
@mrhappypants
@neminers-61
@olyt
@ortanol
@pablodare
@pachu4
@paraguana
@punisher21
@purpleshit
@sansey
@senojuro
@sharkmonsters
@sirtorito
@sirtorito2
@splinterembassy
@splinterlands-es
@stk.master
@teejays
@tj70903
@tribu
@venus21
@vraba
@x23-xmen
@xbee

Pigeon Tier (>$0.005 per day)
@abcor
@ariesnomu
@boromir01
@chanseus
@chonywalker
@diego-ar
@dogz
@dreamthedream
@ejmh
@feltoxxx
@grexx
@henlicps
@hill007
@laqsking
@leizerstark
@lilith-splinter
@makisen
@malefico
@marknerva
@mejiasclaudia
@neminers-77
@neminers-89
@neminers-95
@neminers-98
@nonamechanges
@pachuntamed
@pelusawater
@saleg25
@shellylopez
@steamdan
@sunoreo
@supremeruler
@timbat
@trebuchet03
@twopaces
@uninvited
@xbladex
@xcore

Sparrow tier (>=$0.001 per day)
@abacam
@abond
@aboost
@adrianfcb
@aitana
@akilie1029
@alejandroedwards
@alexmonster
@annaolmos
@ashketchdem
@bet1x2
@bobodan
@brunyson
@c4lexz
@camemo
@caprisk
@ceheran
@cryren5
@danieljusto
@desx3
@ditsack
@donbeano
@doomstate
@drickcrypto
@elclements
@electru
@eliemar12
@enchantres-dc
@enminers-10
@enminers-11
@enminers-13
@enminers-14
@enminers-15
@enminers-19
@enminers-20
@enminers-21
@enminers-22
@enminers-25
@enminers-27
@enminers-28
@enminers-29
@enminers-30
@enminers-32
@enminers-34
@enminers-36
@enminers-5
@enminers-6
@enminers-7
@enminers-8
@enogar
@epicpla
@fakersenpai
@fieryfootprints
@fujifluz42
@gandalf01
@gogoo
@guest1
@helenaz
@ineedcrypto
@invfut1
@invfut5
@jaguapiru
@joelit0x
@johannfrare
@joker777
@kchim0008a
@kchim001a
@kchim007a
@kenorathistles
@kravata
@loscuro
@lucrecio
@mahdi304
@manshockgamer
@mongysalmon
@monsterteam
@narya
@neminers-100
@neminers-38
@neminers-43
@neminers-49
@neminers-62
@neminers-64
@neminers-67
@neminers-68
@neminers-69
@neminers-70
@neminers-71
@neminers-76
@neminers-78
@neminers-79
@neminers-80
@neminers-82
@neminers-83
@neminers-84
@neminers-86
@neminers-87
@neminers-88
@neminers-90
@neminers-91
@neminers-92
@neminers-93
@neminers-94
@neminers-96
@neminers-97
@neminers-99
@nh3
@ohlinss
@pelusalife
@pelusaplanta
@peygo
@philipmak
@pindex
@pompeya
@qatro
@quars
@riandeuk
@rpc1743
@rubillo15
@rusbe
@santiagorobert
@shakka22
@shaobang
@simba1939
@tamymayz
@tavo1927
@thebestavo
@thehydra
@theraider
@tiburones
@todociencia
@trebuchet06
@trickshot
@veb21
@victatt
@viniciotricolor
@wild.nature
@xploragamer

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The Legendary Canary strives to rent out cards with:

Competitive daily rates
Generous contract terms
Useful abilities you actually want!

Explore what is Available!

https://peakmonsters.com/@legendarycanary/cards
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