Proposal idea: Transition Away from SPS Rentals to Strengthen Long-Term Ecosystem Ownership

Overview
The current SPS rental system has created an imbalance in the Splinterlands economy by enabling participation without meaningful ownership or risk exposure. While this model may have provided short-term accessibility in earlier stages, it no longer aligns with the long-term sustainability and value growth of the ecosystem.

Core Problem
SPS rentals are currently oversupplied and undervalued, allowing players to access staking benefits at minimal cost. This creates a disconnect between participation and ownership. As a result:

• Players can extract value (e.g., selling reward cards) without committing to the ecosystem.
• The perceived value of SPS remains suppressed due to low-cost access.
• Long-term holders are not adequately incentivized relative to short-term participants.

Key Principle
To earn within the ecosystem, participants must assume ownership and risk. True value creation comes from aligning incentives between contributors and stakeholders. Ownership ensures commitment, while risk ensures accountability.

Proposal

Remove SPS rental and delegations with one month's prior notice

Objectives

1. Encourage Ownership
   Require players to hold and stake SPS directly to access core rewards and benefits.
2. Align Incentives
   Ensure that those who earn rewards are also those who bear the economic risk of holding SPS.
3. Reduce Exploitation of Oversupply
   Eliminate or restrict low-cost rental access that allows extraction without investment.
4. Strengthen Long-Term Value
   Promote a healthier token economy driven by demand for ownership rather than temporary access.

Expected Outcomes

• Increased demand for SPS ownership rather than rental usage.
• Stronger alignment between active players and long-term stakeholders.
• Reduced sell pressure from participants who currently operate without meaningful investment.
• A more resilient and sustainable in-game economy.

Important Note
This proposal is not intended as a short-term mechanism to increase SPS price. While price appreciation may occur over time, the primary goal is to establish a sustainable, ownership-driven ecosystem. Any price impact should be viewed as a long-term consequence of improved fundamentals, not an immediate objective.

Conclusion
The transition away from SPS rentals and delegations represents a necessary evolution for Splinterlands. By reinforcing ownership as the foundation of participation, the ecosystem can foster stronger commitment, healthier economics, and long-term growth.