SPS Proposal: Allocate up to 30 million SPS to pursue exchange listings
Burn transaction: https://hiveblocks.com/tx/7b14e264dfa6a97f13abba538b17fba64fb6cc18
The SPS DAO authorizes Blockchain Founders Fund (BFF) to spend up to 30,000,000 SPS on Exchange listings.
Exchange listings provide more exposure to the SPS token and have the potential to bring new eyes and new investment into our community. Regional exchanges can add value by acting as a FIAT onramp for their user base while larger exchanges can generate excitement and exposure to the token that is difficult to achieve through other means. In summary, exchange listings are an important mechanism to gain new awareness of the SPS token, increase liquidity and provide new onramps into our ecosystem.
Should this proposal succeed, BFF will proceed with negotiations to get SPS listed on additional exchanges within the following criteria:
Up to a total of 30m SPS may be utilized.
- Up to 30m for either Binance or Coinbase (Top 2)
- Up to 7.5m each for any other top 10 exchange
- Up to 2.5m each For localized exchanges that support FIAT on-ramps
The allocation for 30 million SPS will be good for 1 year of this proposal receiving full DAO approval. Unspent SPS after that time elapses would need a renewed proposal from the DAO.
BFF will provide the above negotiation services at no charge to the DAO.
This proposal has been crafted and approved by the Splinterlands' Community Leadership Council.
Both the community and the Council have become more familiar with BFF since the first proposal on this topic was crafted. To recap who BFF is:
- BFF is a large asset holder in the SPS ecosystem and has been responsible for each of our previous exchange listings (Gate #9, Crypto.com #16, Huobi #17, MEXC #19, Bitrue #24)
- They have significant experience negotiating in this space
- They are offering their services for free in order to help the DAO achieve its mission of promoting the SPS token.
While getting either Binance or Coinbase may be a long shot for even this amount of money, the Council believes that both the timing and the dollar amounts are reasonable for the benefits that could be achieved by additional listing(s) at this time.
The above being said, we have also heard objections from the community about the timing, the amount of SPS involved, and the readiness of the game to take advantage of new eyes and new funds entering the game.
From a timing perspective, Splinterlands and SPS have weathered the bear market much better than many other projects in the space, and our overall stability makes us an attractive listing at this time. BFF shared that based on preliminary discussions, exchange listing fees are currently at historic lows and that the fees are likely to rise faster than token prices. As an example, fees were as much as 90% higher during the height of the last bull run. The Council believes it is worth pursuing listings now to take advantage of these circumstances.
30,000,000 SPS is almost $900,000 at today's prices and the Council agrees that is a lot of money. However, 30,000,000 tokens is only 10% of the SPS that was set aside for the DAO in the whitepaper and is less than half of the SPS that the DAO has already earned from sales of the Riftwatchers' mini-set. Riftwatchers still has $10,000,000 in packs on the market which will likely lead to at least 150,000,000 additional SPS entering the DAO treasury.
In addition, Splinterlands has committed to releasing a mini-set that will be sold for DAO revenue with each main set for the forseeable future. 30,000,000 is a lot of SPS, but the Council has worked with the Splinterlands team to make sure any tokens spent for this purpose are fully replenished by the selling of future mini-sets.
Should this proposal succeed, it would likely be 1 to 3 months before the first listing(s) could be realized. This would allow the company time to:
- Release important parts of land 1.5 providing more use cases for cards and DEC
- Roll out various upgrades to the new player experience and streamline the onboarding process
- Maximize opportunities presented by token listings to onboard new gamers and collectors into the community.
The Council believes that the increased utility of assets and continued focus on improving the Player Experience would help increase retention of new players and collectors reviewing Splinterlands and SPS as a result of successful exchange listings.
The Splinterlands' Community Leadership Council is confident that pursuing exchange listing(s) at this time is a good use of DAO funds. Further, we are confident that the company is committed to improving the New Player Experience, the onboarding process and the game itself to make sure that the ecosystem receives maximum benefit from the proposed DAO expenditure for listing fees.
We ask that you also support this proposal, but also look forward to engaging with you in the comments and in the various discords where we all congregate and discuss.