Please hold my peg

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DEC to PEG

DEC is meant to be the stablecoin of the Splinterlands ecosystem, pegged at 1000 DEC per USD. In the past, the price of the DEC token has gone way over this pegged value, to a high of about 1000 DEC per 5 USD, and below it, to a low of about 1000 DEC per 0,3 USD. This volatility made it harder to use DEC as a transactional token, because people could not rely on its stability. Since then, a mechanism has been introduced to make sure this doesn't happen again: SPS can be burned to create DEC at a rate of 1 USD per 975 DEC. This will make sure that 975 DEC will not be worth much more then 1 USD.

Investors that understand the SPS burn mechanism, realize that holding DEC at the pegged value has no potential upside. The incentive to hold DEC is diminishing as its value approaches the pegged value of 1000 DEC per 1 USD. People will surely still need it to spend DEC in-game, but how long will it take before that actual demand sucks up the billions of circulating DEC? Until that time, DEC will bounce around below the pegged value, preventing the SPS burn mechanism from carrying over value to SPS.

Proposal 'Peg Holders'

To create incentive to hold DEC at the pegged value of 1000 DEC per USD, a title can be created, given out to any account that holds more then 10 million DEC. If the account's balance drops below 10 million DEC the title is lost immediately. This title 'Peg Holder' or something more creative, will give the benefit of 10% increase of ECR regeneration speed. A small bonus, because top champion league players can make a lot of extra Ranked Rewards with a tiny increase and they are exactly the type of accounts that are able to carry this burden. If 100 players aim to get such a title this would mean 1 billion of circulating DEC will not be sold. Surely some game economist can adjust these numbers to something that works.

Summary: An idea to incentivize holding DEC as it approaches its pegged value of 1000 DEC per USD

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dao proposal spl splinterlands dec
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15 comments
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This title 'Peg Holder' or something more creative, will give the benefit of 10% increase of ECR regeneration speed.

If this proposal ever see the light of the day. It will get my vote for sure :)

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Awesome! If the idea works it may play a significant part in getting DEC more stable. I'll try to get it under the attention of the dev team for them to explore the option.

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Now that's a great idea I can fully support!

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Thanks! It seems like a solution that doesn't impact many other parts of the economy, hopefully there are no hidden problems.

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I like the idea of added incentive for the largest holders to commit to removing the liquidity from the system. It would have my vote as well.

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Thanks! Yea that was a coincidence that I liked a lot as well. It works nicely because most of these accounts have a lot of DEC to begin with and the incentive of ECR regeneration works best on them as well. Where to exactly put the numbers would be something for Yaba to figure out.

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This proposal is great I like it, we should be able to make it a real proposal.

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Thanks! I will see if there is interested from the team to take a look at it

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Great, it would be good to discuss it without a doubt.

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I like the idea, one I could get behind.

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Thanks! If the details can be worked out nicely, I think it can have a real impact on moving DEC away from the sellers market

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love this idea, i wonder if there is any room for the title to be more fun though? maybe like "the Vault Keeper" or something? great idea romney

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