Splinterlands - Is Staking SPS Worth It?

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A lot of people are currently staking SPS in hopes to earn more vouchers for the upcoming Chaos Legions pre-sale. Beyond that benefit I am here today to also look at what other benefits and drawbacks to staking SPS? Is it better to just collect SPS and sell them? Or is it better to stake them?

If Goal Is to Earn More SPS....

There currently are two ways to earn more SPS in game.

One is staking SPS in your account.

Two is collecting SPS via daily air drop.

The first option has been for me personally dropping over time even though I stake all my collected SPS daily. Based on my own account through peakmonsters you can see below I have stay mostly consistent in my earned SPS in red, approximately 22 - 25 SPS. I have mostly been claiming my SPS earned through staking on about the same time everyday to have this consistent earning but one can assume if I had not been this consistant the range of values of the claims could fluctuate a lot therefore compromising a reasonable analysis of the SPS earned through staking.

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The trend has been going down ever since day 1 due in part more SPS is in circulation and more is being staked while the same amount of SPS earned through staking remain the same. The % APR when SPS first was introduced was over 300% but gradually over time it has drop now to slightly over 70%.

What has help balance out the SPS returns through staking is that every time I collect my air drop the SPS go directly into staking. This meant my staked SPS continuously grow at some what the same pace through out the initial kickoff of SPS.

The second method of earning SPS through daily air drop for me is giving a larger return compare to staking is mainly because I have spent years collecting cards which in turn gave me a respectable amount of collector points.

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Breaking out my air drop with the use of splintercards.com air drop calculator....

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I am currently earning 0.0151% of the total amount of SPS that is given out daily in the air drop. It is worth noting we are almost three months into this daily air drop which means there are less than 300 days left of air drops.

If Thinking Long Term

This leads to an important element as to why staking SPS is preferred. The daily air drop will last for one year and could potential extend further but it will have to be DOA initiative and enough votes to determine that. Instead staking SPS will actually go through a five year period as it currently stands. This means five times longer to earning SPS through staking versus collecting it via air drop. So if I plan to be playing Splinterlands long term and holding assets long term this includes holding SPS long term and staking them now allows me to benefit long term.

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As it currently stands using another Splintercards.com calculator I can determine how much SPS I would earn through staking as the amount of SPS in circulation increases and others who are increasing their own stake of SPS. From 130 million SPS staked I am earning approximately 24 SPS daily, while if and when there are 250 million SPS staked the estimate is a daily return over 12 SPS. Basically cut in half SPS to claim when the staked SPS close to doubles. Therefore it is safe to assume if staked SPS is quadrupled the earned SPS through staking would drop down to 1/4. Basically the longer SPS is staked the more likelihood less is earned.

Benefits Of Not Staking SPS

Even with the decay in SPS earned through staking it is still better than just keeping SPS liquid. I can only see a couple of benefits of not staking SPS.

If one has enough hive to pair up with their liquid SPS they can actually invest the assets into a swap pool. This in turn actually earns them more in collector points which in turn helps in boosting daily amount of SPS earned through the air drop. Then again this will lock up SPS and Hive or what ever counter token is used to trade against SPS.

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The two more popular and literally provide rewards besides more air drop SPS are DEC:SPS and SWAP.HIVE:SPS. Both will give boost in collector points to help increase SPS daily air drop but also earn small interest that is paid out daily.

Another reason to keep SPS liquid is basically be able to trade it. On hive-engine SPS has shown in the first few days after inception to be quite volitale. Yet over time it has gain a support value and is currently in a small uptrend. In any case it would be in a traders' benefit if the intention is to buy and/or sell SPS.

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Conclusions

Although I have discussed the benefits of staking SPS, I have also discussed the benefits of not staking SPS. You should come to a conclusion than that either way a player plays the end result is to earn more which is basically happening just by participating in game.

There is a clear difference in earnings between staking SPS versus not. That is with the staked option players consistently will continue to earn a similar amount of SPS daily. While not staking the SPS players can still have other means to earn more SPS but if they were to trade it they run the risk of selling SPS at too low of a price.

Bottom line is that if I wanted to hold long term and earn as much SPS I can I would go with staking the SPS. While if I have intentions of cashing out or at least trade SPS as a crypto to enhance my deck to be more competitive we will end up basically less SPS. There is the potential to trade well and end up having even more SPS but it has risks involved. In the end I prefer the peace of mind by staking SPS to earn more rather than run the risk of trading in and out for gains as my eyes are set on earning a lot of SPS.

Until next time thanks for reading!!!

If you are interested to learn more about Splinterlands please go through some of my other posts. Order is from newest to oldest posts:

Everything About Dark Energy

All You Want To Know About Reward Chests

SPS White Paper Cliff Notes

Helpful Links for New and Veteran Players

Splinterlands Good Cards To Own

Splinterlands Rentals from a Lender Perspective

I have plenty of other cards for rent! Just go on peakmonsters and check out the market place and if you are curious what I offer here is a link:

mawit07 rentals

If You have yet to take part in playing this great game called Splinterlands please click on my referral link. It is free but in order to earn real assets such as cards and token you would have to invest in a starter deck or purchase game cards. Join the discord to learn more. Good luck!


THANKS FOR READING! CONTINUE TO PLAY SPLINTERLANDS!




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14 comments
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!LUV and !PIZZA and !WINE

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Good analysis bro. I like staking every bit i can for now. I think the game should hold strong over next couple years, at least we hope.

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Staking around 75% of my SPS, keeping the rest liquid...Going to pay for Chaos Legion card packs with SPS😀

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I'm trying to keep the balance between having staked quite a lot of it and converting some into other crypto as I probably wouldn't buy it in case I wasn't getting it from the airdrop. On the one hand there is so much more SPS that will come into circulation while on the other side the fully diluted market cap is nowhere near that of Axie so the price has still potential to go up.

If anything I do enjoy this game of trying to make the right decisions more than the actual card game. The extreme pay2win aspect of the actual gameplay in the battles is what holds me back as I do believe it will backfire at some point with no signs that it will be fixed.

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This just brings me back to my 'do everything strategy'

I get around 700 a day ATM and my current approach is this:

  • stake about 200 (for security)
  • sell about 50 a day for BNB (although I do this weekly to save on BSC fees)
  • Hold the rest liquid on Hive Engine to pool with DEC for SPS (Holding DEC is the way to earn more SPS, the best way)
  • I'm looking to sell several thousand gradually either when it goes above $0.85 (everyone's going to waiting for the $1!) or very shortly after CL pre-sale starts - and some is reserved for packs too - sell the rest for stables and BNB)
  • Once it starts going down in price, stake some keep some liquid to pool with DEC
  • Once I feel it's bottomed out, buy some more. I'll be looking for $0.30.

NB the Cub Kingdom is also a viable option - hence why I'll be swapping for BNB:

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i made already 13k with SPS and i think we just started.

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There is more and more staking opportunities among cryptocurrencies with high APR encouraging inflation, but with the risk of the bubble bursting at some point.

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