RE: Cut SPS Max Supply and Emissions

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I don't understand why this proposal now, before SPS replaces CP for ranked.

It seems almost certain that the SPS requirements will need to be based on the already-issued supply, not the token issuance rate, in order to have any effect. We have a giant use-case for staked SPS coming up.

Nearly every player agrees that the top priority for the game is more players, and this is the opposite of that

  1. We want these players buying cards, combining up, buying SPS, etc, etc.
  2. Based on the high quantity of issued SPS relative to the projected rewards and "real players," Splinterlands is likely to set high minimum requirements of SPS per league hurdles to gate the top leagues and keep earnings high at these levels.
  3. A higher nominal token price will mean that buying SPS becomes harder to reach for most new players.
  4. Meanwhile larger SPS holders will have way more than they need so there will be price competition in order to rent out the unused SPS cheaper than the next guy, instead of sitting unused.
  5. So for the new player, the low leagues will be very congested, and give very little incentive to continue beyond "giving Splinterlands a try".

So then, it sucks for the new player. Then the only justification for this is tokenomics. But even there, I question whether this is sound:

  1. Emission rates for SPS is about to be reduced by 25%
  2. You aren't magically burning 25% of the current substantial "oversupply" so the base supply isn't changing
  3. So if the same oversupply exists, it seems unlikely that a 25% reduction in the rate of new supply will increase market value by 25%.
  4. So it seems the result is overall rewards and returns on all assets drop. Some will call this "stabilizing" if there is an offsetting increase, although for the reason above, it is likely less than 25%...
  5. A decrease in returns from staking, LPs etc reduces the appeal of holding SPS
  6. A decrease in returns from playing reduces the appeal of owning cards

I hate to say it, but to me this falls into short term tokenomics voodoo... and I think we all want the team to focus on delivering an ambitious roadmap and an amazing product, instead of fussing with tokenomics yet again.

hive-13323
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This is sort of admitting players who have been around for a long time have too much SPS when you say they are going to set the threshold high. New players are going to have to buy a ton of SPS anyway to be able to even enter those leagues that pay good levels of SPS, so there really isnt a way around buying more SPS and the emissions dont play much of a role here for new players. I personally dont think the current supply is too much, its the 66% more coming with a 2 cent token thats being given out in such large quantities there is no incentive to buy it that's the problem.

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(Edited)

Thanks for the response. Yes, that's actually exactly what I'm saying. There is CURRENTLY WAY WAY too much SPS already minted, and also too much coming - relative to the currently available use cases.

But what does Aggy say? There are not enough cards, not enough SPS, not enough land, not enough anything, push and shove politely please.

So we KNOW that Matt and Aggy will try to lock it up to earn.

However, by pushing this now, before THE BIGGEST ECONOMIC USE CASE from the SPS white paper comes into effect, this proposal kinda tells the team "we don't trust you enough to let you execute your plan"

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