Bonding DEC vs Buy and Hold - Which is Better?
Like I said in my SPS Flywheel post, getting DEC back to parity and starting the SPS burns is the single most important thing for the Splinterlands community to do.
I've been thinking about the DEC bonds (really pre-paids) idea and the objection that it's more or less the same as just buying DEC now at a discount and holding it.
I don't think that's quite true. There is a major difference: liquidity.
In the bonded scenario, I buy DEC today, spend it today at a discount, and it completely leaves circulation.
In the buy and hold scenario, I buy DEC today, hold it, and maybe spend it maybe sell it later.
It's the leaving circulation that is the critical difference, even more than the discount. We need to start chewing through the existing supply as quickly as possible.
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You want those bonds to compete with the high APYs of the pools? Or pay a dividend in $Value of DEC at the payout time?
Elaborate a bit maybe.
These are not bonds in the financial instrument definition. DEC bonds are in the crypto defi sense of locking up.
In this case we are talking about pre-paying for in-game upgrades that can be redeemed at a later date for a discount.
So maybe bonding 800,000 DEC today will give me 1,000,000 DEC worth of upgrades in the future.
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Let's go than,
You still need to compete vs the incredibly high APYs of the Pools to convince people and you have to add the risk element of long lockup as well as total loss of flexibility.
So maybe we go lock up 800.000k DEC and get buy opportunities for 1.500.000DEC in a year? Even that seems to be a low shot since DEC will rise to the PEG (~+40%) within the next demand phase of the upcoming bull run.
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I can only see that happening with one single and very radical change. Let people lock DEC and SPS for temporary Guild Features/Brawls/Quests. So that the Liquidity competes against itself and gets tamed by its own supply.
But how realistic is such a move or something similar? Probably less than 1%?
Yeah I'm just making up numbers for the discount here. It's not a simple comparison by any means though.
If we assume that there are players who want to use DEC in the future to buy upgrades they have some choices:
Buy and hold: potential profit 58% upside
LP: 60% APR + potential token quantity loss as DEC rises
DEC bond: 58% + discount% upside
do something else and buy DEC later: ???
So if your goal is to buy those future upgrades, bonded DEC with a discount is better than just a straight buy & hold. May or may not be better than the LP. And who knows what the overall opportunity cost is when factoring in everything else in the world.
As just a trade, bonding your DEC doesn't make much sense since you're locked in.
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It's like the cat used to say, 4 Weeks or forever is basically the same.
You can still make that novel approach and pay dividends in DEC amounts denominated by their dollar value.
Well, there is probably a legal reason why tokenized bonds are generally difficult to achieve. A third party could help here, some anonymous DEC bonds emitter from the Bahamas. Where's SBF when you need a good
scammerfriend to create a helpfulrugpulldefi tool.I still think doing something about bots/smurfs and improving the new player experience should be a higher priority. It'd be nice to see players enjoying themselves in all leagues instead of just the people in Champion and maybe half of Diamond. The game needs the lower leagues survive or else it's just going to be the top 0.1% of accts playing with themselves and their bots.
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The real question in my mind is how much actual demand there would be for the DEC bonds concept. Everyone already knows that a ton of DEC will be required for things in the future, and if they buy now they can get it at ~62 cents on the dollar, but hardly anyone is taking that deal. DEC bonds would just be giving a larger discount, but with the downside of locking up the DEC, as you mentioned.
So if hardly anyone is taking the deal now at 62 cents on the dollar, then if we offered them for 50 cents on the dollar (which is roughly what it would be with your 800k DEC bonds gets you 1M worth of DEC example) would that really cause any significant amount of buying? Enough to make it worth the development effort of selling the bonds and then including them as payment options for everything that uses DEC in the future?
This is what I'm not really sure about. Also, the alternative is just to be patient and wait for the new DEC sinks to be released over the next 6 months or so. At the moment I'm leaning towards just being patient over creating additional ongoing development for something that I'm not certain will have that big of an impact.
Fundamentally all markets have a clearing price. So at some discount level people will lock up the DEC.
Of course I don't know how the utility of eating into the existing DEC supply compares to development opportunity costs.
I can say for myself I'd be locking up ~100k DEC/day.
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The way you deal with fraud and cheating in your game, is by blocking people who report it to you. Thats right, the entire splinterlands leadership blocks people who want to report it to them, they throw those people from the chat rooms with permanent bans, and then run bully, harassment and intimidation campaigns. This is the way you fucking filthy fraudsters run your game. You were given evidence years ago of the insider cheating and fraud going on, but you swept it under the rug. Not only insiders, but your personal friends, who are also some of the biggest whales, who are then protected by the racketeers. Not only did you sweep it under ALL under the rug, but then you had the morals of a fraudster and you fucking hired some of them and started paying then with company revenue. While other were made moderators to hide and protect the scammers, cheaters and fraudsters.
Why did you hire hive insiders and pay them salaries for doing nothing but play the "game" like anyone else with company money that was supposed to go to building the game. Then the snake oil salesmen spent countless months lying to all the players about all the delays. I dont even give a fuck about that kind of fraud here, but I take exception to the 2 year long bullying and harassment campaign built on pure hatred against one of your original players in the game.
You know exactly who IM talking about, becuse you blocked me in the chat after I messaged you about it. But you are a fraud, a cpoward and a fucking pussy arsehole who protects the racketeers. GO TO FUCKING HELL YOU JERK, FOR PROTECTING THE SCUM OF YOUR INSIDER FRAUD.
Ive had enough of your mobsters and insider frauds pushing me around and giving me the exact same treatment that was given to palikari. There is nowhere or nobody left to speak to, because the racketeers have now banned me from every chat room related to your shitty game. Is that the peace love and freedom bullshit you are spreading? You are all fakes, who hate on anyone you dont like, and then treat them like dirt. So much love and freedom, and peace. Fuck you and your bullshit marketing spin and lies.
You are all directly responsible for the complete destruction of someones life, because of your egos, arrgoance and pure fucking greed. Get fucked. I hope you all get what you deserve for what you all did. We all kno what happens next. The mobsters and racketeers organise to have this comment disappeared. JUST LIKE ALWAYS. THIS IS HOW YOU DEAL WITH IT.
I see one of your listed accounts seems to have blacklisted me without comment, and I am curious as to why. I am unaware of any interactions we have previously had, and I am confident I have never downvoted or blocked you, nor anyone you could conceivably know, since I almost never do either.
Has the account been sold or compromised, or is there some reason for the downvotes? Surely simply addressing any disagreement, rather than attempting to censor me - exactly as the above listed accounts have been - would be potentially more productive.
I'd appreciate any light you could shed on what is presently quite inexplicable from my point of view, as I don't use tokens as money, and am pretty immune to such censorship, at least insofar as economic pressure is concerned.
Thanks!
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I've been buying a lot more and earning a lot more but I haven't been using it to be honest. At least not nearly as much as I have in the past and I'm curious if others are now in that same boat or not.
My main reason was because of them saying DEC would be used in land some how so now that's making me hold it for what it might be used for as I don't want to have enough when that time comes.
However small changes like Guild stones being able to be bought with DEC and the removal of them from DeFi pools was a huge step to removing the hyper inflation DEC had for a long time. It's just going to take a while to seriously chomp through all of that excess.
What are the current burns for DEC right now though?
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Packs, guild upgrades, blood/power stones. I think that's it.
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