Understanding the Dashboard: The SPS Donation Cycle
The Donation Goal System
The donation goal feature displays your collective support progress with a dynamically scaling goal system:
How Goals Auto-Scale
Instead of a single fixed goal, the system automatically adjusts goals based on current donation levels:
When you donate, the progress is calculated dynamically:
This creates a sense of continuous achievement as each goal level is reached, with the progress bar and indicators updating in real-time.
The SPS Automated Burning System
The most innovative aspect of our dashboard is the automated SPS burning system. Unlike typical donation platforms that simply collect and use funds, we've created a continuous token burning mechanism that systematically reduces the SPS supply.
The 95/5 Distribution Model
When users donate SPS to the project, the tokens follow a specific distribution:
95% of donations are burned to reduce the total SPS supply
5% are used to sustain and grow the project
This creates a virtuous cycle where supporting the project directly benefits all SPS holders by reducing the token supply.
The Automated Conversion Cycle
Here's where things get interesting. The system doesn't just burn tokens once - it creates a continuous cycle of burning:
Step 1: Initial Donation & Burning
When someone donates SPS, the automated system transfers 95% of the donation to the "null" account (permanently removing them from circulation) with a special memo:
This special memo triggers Splinterlands' built-in conversion system, which generates DEC tokens according to this formula:
Step 2: DEC to SPS Conversion
The generated DEC tokens don't just sit idle. Every 30 minutes, an automated process:
Transfers the DEC to Hive-Engine
Uses the marketpools contract to swap DEC for SPS at market rates:
Sends the newly purchased SPS back to the Splinterlands ecosystem
Step 3: The Cycle Continues
A portion of the newly acquired SPS is then burned again, continuing the cycle. Each time this happens:
The system permanently removes more SPS from circulation
New DEC is generated
The DEC is converted back to SPS at market rates
The cycle repeats
This creates a perpetual burning mechanism that continually reduces the total SPS supply.
Real-time Monitoring (every 30min)
The dashboard's Auto-Conversion Status component shows this process in action, displaying:
Total SPS burned to date
Total DEC generated
SPS purchased through the system
Number of completed cycles
The most recent transaction activity
Every transaction is recorded transparently, with full history available for review.
Technical Implementation Details
For those interested in the technical side, the system operates through several automated processes:
Token Monitoring: A script regularly checks the balance of the donation account
Transaction Broadcasting: The system uses the Hive blockchain's custom_json operations to perform all transactions:
The Impact on Splinterlands Economy
This system creates a unique economic model where donations don't just support a single project but benefit the entire ecosystem. By continuously reducing the total SPS supply, we're creating a deflationary mechanism that potentially benefits all token holders.
Since launching, our system has burned over 12373,74 SPS through approximately 241 conversion cycles, effectively removing those tokens from circulation forever.
Links:
SPS Dashboard: https://elmo-burns.com/
Transaction History: https://hivehub.dev/@sps-validator
Thank you for your support,
Schnuutz