Measuring my DEC
One of the things (there are many more) that I don't really understand in regards to Splinterlands, is how DEC is valued. Currently, I have a fair amount of it that I pool with SPS and it has dropped in value significantly over the last few weeks, which I assume is due to the rewards doubling with the release of the new game format for CL only, or is it that the airdrop is coming to an end and people are looking to offload before the mass exodus?
Admittedly, for me coming into Splinterlands late, the value of DEC was already inflated and the people who have been playing for years, likely stacked a massive amount far lower than today's price and can offload for ages to come, but the slide has been pronounced.
What I assume though, is that due to the amount that people hold, Splinterlands will have to find a way to add value to DEC through in-game mechanisms that are more attractive than building a guild, which doesn't soak up and sink that much DEC.
I am not exactly sure what this means, but it was clipped to me in a Discord, so I should probably have a look at what Terra is doing - since I haven't paid any attention to that at all. However, if the "future is bright" why are people selling so heavily, as even at the declining price, the daily volume on H-E is nearing $200K dollars, which means a fair amount is being traded. At some point, I guess I will have to put in a buy, but I think I might have to wait a bit longer before biting that particular bullet as it doesn't look like pulling up soon.
However, this is not my area at all, for as I said above, I don't understand all of the mechanisms in play. I am far too simple for such complexity and am still stuck on card buys and values and expanding my SPS holdings. There is only so much I can hold in my brain and consider at any one time and, I think I am stretching to the edges of my capabilities currently.
What is interesting though is there are still four months of SPS airdrops to come, so selling now seems like a bad move, however it is also possible that selling the DEC for SPS is going to attract more SPS than the drop from now on - but that also means not having the DEC.
One of the things that I have learned in the last five years is, it is better to have tokens than not have tokens. Many people seem to take the sell approach of "there is no utility" or "declining price" as if the current circumstances are set in stone and will not change. And I think in the case of Splinterlands, the team has a track-record of building value mechanisms into the development, which means that various types of innovations can happen in the next months that fundamentally shift the dynamics of the economy. If this happens, it can push the value of assets up quickly and that can mean, missing out on getting that stack back.
Currently, I am holding almost 4M DEC and pooling with SPS - which means that with my CP and the like, I am collecting on about 10M airdrop points, which means I am collecting about 800 SPS a day, which is worth about $80 dollars - but with the decline in DEC, this doesn't cover the "loss" in value. But, does that matter? If this is solid for the next 120 days, it will provide another 96,000 SPS and, I will have the DEC still. If I were to sell all of my DEC for SPS today, it would get me about 75,000 SPS and I wouldn't have the DEC. This means that even if DEC goes to zero, I will be better off in SPS and what happens if the usecase for DEC increases even mildly?
Am I missing something here?
On top of this, the SPS drop to investors ends in a few weeks and that means, SPS is going to get harder to get, as it will only be coming through collection points and pooling etc. for the last three months of the drop. That is a massive change in the ecosystem, as it will severely restrict the new SPS volume that can potentially hit the market and may encourage DEC to be bought in order to maximize the last hurrah. Past that, I am not sure where new SPS comes from (told you I am limited in understanding) and I want to make sure that at that point, I am carrying enough SPS weight so I don't have to worry about getting more.
The potential on SPS is large for the future, but again, track-record shows that most people will not look very long on any token, so they will make "rash" trades to maximize short-term, but may end up missing the potential of the long. Of course, this depends on many factors and life circumstances, but I am lucky, as I work a couple jobs and don't need crypto to pay bills. This means, I can buy and hold cards, increase my holdings and speculate on the long view, without it damaging my current lifestyle. All it means is that, I have live within my IR means, so there is also no expansion of my lifestyle.
I am okay with that.
I think Splinterlands is in a bit of a "lull before the storm" phase, where there was the hype of Chaos Legion and then the fizzle due to perhaps short-term over supply of packs and cards. However, LAND is in the pipeline and that is expected to soak up a huge amount of SL resources, which means that even after the release of Rifwatchers (bought with SPS only I believe), once that land requires workers - the card markets are going to get very thin. Will DEC be required too? Will those with a plot have to have to sink DEC in for upgrades?
I don't know, but the next year or two is going to see a lot of volatility on Splinterlands and at least for SPS, I think we are near the bottom, so this is the easiest it is going to get to get it. Because of this, my hope is that by the end of the drop, I will have secured somewhere around 350K SPS through drops and purchases, and have enough DEC in the wallet so I can put more than just the tip in.
Are you holding your DEC too?
Taraz
[ Gen1: Hive ]
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Don't play. Couldn't help it.
I couldn't get this out of my head when I built my own *deck" 🤣
On Gods Unchained you can build magic decks.
I'd love a large strong magic deck.
TMI
Hahaha, oh don't man, even worse!!
:D
What types of cards that are better to use from the water splinter to increase rating in your opinion, and have you ever tried renting some cards?
I rent a lot of cards, as I play in diamond league and manage to get into Champion at the end of the season - but I don't know what you play, so it is hard to say!
For me I find using fire cards very useful sometimes during battle against monsters. I think you've noticed that yes?
I don't use Fire very much personally, because I don't have many fire cards :)
Yes. Currently 5071.083 DEC. And I am leasing out a part of my Splinterlands card collection on PeakMonsters. This currently gives me 16.868 DEC per day. Nowadays I rarely play Splinterlands.
If you don't play, why not rent them all out?
Because most of my Splinterlands cards worth just/only a few cents. No one would rent those cards. Nowadays my total (personally owned) Splinterlands card collection is worth only around $240 USD. Currently a few valuable cards are delegated to me by various other kind and generous Splinterlands players, and this why PeakMonsters is showing a value of around $656 USD (without selecting any filter).
By putting a tick to "Yes" after the "Owned" filter, it shows a value around $240 USD. This is the total value of the 217 Splinterlands cards, which I currently own.
Yeah, the rents are non existent for the level one cards during season - but at the end of season, you might rent them :)
Oooo, I right know there was something coming that might only be purchased with SPS. That will be good!
Yeah, I think that it should create a bit of demand and hopefully, create a bit of SPS hype too. Might be nice with a pump in the crypto markets timed in with it.
That would be nice indeed. I might stack my stake up a bit, it's quite tiny!
DEC envy night become a thing.
Urgh. Shocking!!! 🤣
Very interesting post, I myself am currently considering whether to collect all the tokens or instead buy cards that seem very cheap.
!1UP
I am not sure what will be the best course, but I get the feeling that there are many ways to skin a cat on Splinterlands.
I am holding my DEC currently around 20K DEC kept only for airdrop points to get some SPS. I sometimes use the DEC to buy the cards and thus trying to buy and hold the DEC for the future.
I have never bought cards with Dec, are there benefits?
I use MonsterMarket to buy cards using DEC, they share 60% of the fees back.
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I think this is one of the reason why DEC value goes down.
https://ecency.com/splinterlands/@splinterlands/ending-dec-reward-payouts-for-uniswap-lps
People pulled out the DEC from ETH-DEC/DAI-DEC pools and sold DEC.
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Good point. Thanks!
Yes, that's probably true. Thank you, I was just looking for an answer to that question. Really, I wish I knew it before March 17))
I believe splinterlands team are seeing the situation of things and trying to get a way dec and sps have more values in few months to come. I believe dec will bounce back
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What I did is sell DEC for assets that are more likely to hold their value and give me a similar yield.
I think the people selling are thinking of DEC as being at $1, there's no plans in that quote from Matt to Pump it - nothing's gonna pump it.
NB When I sold above $2 for $1000 I was able to buy about as much SPS as I would have been dropped and an equivalent amount of BNB - pool those two for 40% and it's a nice hedge against DEC going to $1 and SPS declining further.
Be interesting to see if it goes below $1. Could happen if they don't get the peg mechanism out before say mid summer.
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Yeah, I don't think so either - but, I think it is still going to return more in yield now than if I sell and buy SPS directly and, even if it goes to 1ish, there will still be the50% value left in it.
But, I have no idea all up - there are just too many things that require thought that I don't have energy for :)
It is easier just to hodl at the end of the day!
Shame you don't have a soft spot for crypto raiders, they're a good buy I think!
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there is so much to look forward to in 2022 for splinterlands it's crazy really...
keep in mind that SPS and DEC have a really close correlation. I see SPS going up very soon for the reaosns you mentioned as well as the riftwatchers release. This also coincides with the technical analysis perspective
https://peakd.com/hive-167922/@tobetada/crypto-analysis-or-sps-reaches-new-low-still-hope-for-higher-highs
But, I am not sure if DEC will follow SPS in the future.
exactly, it definitely won't for the long term. But maybe it hold up short term
Yeah, I had a couple hundred thousand DEC and used it to buy cards. It feels like it's on its way back down to the peg, which is where the Splinterlands people want it anyway. With that in mind, I just went with the flow and converted to cards.
If it does keep coming down, I'll be able to buy a LOT back with less money if I want the points. In the meantime, the DEC I used did increase my collection power so it's not like I was losing all of the points I got by holding it.
Like you, I don't have a ton of time or motivation to think through everything. I just noticed the trend and since I wanted more cards anyway, I used my DEC to buy a few rather than fiat.
We'll see what happens. It sounds like DEC will be needed for land so...it might go back up some. Who knows?
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I don't know if it will go up, considering the emissions will be doubled for the new format too, so that is going to get dumped by most. At the end of the day - it is what it is and I hope I am up, not down :D
I'm not sure what to do now), I keep sps for airdrop, too. Also hope for the creators, so far they have not let me down, unless you count unsold chaos))
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hold onto SPS in my opinion :)
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I don't have a lot of DEC right now, just enough to contribute to my guild a bit and rent some cards every season but I'm very interested in seeing how the land element affects the game and to see if DEC or SPS's prices kick up some time in the near future.
I have no idea what DEC will do - but SPS at least should go up :)
Right now I am doing that card flipping thing. Recently I won my first golden legendary card so after selling it I had a bit more funds for bidding. But perhaps bidding on golden legendaries is not the best idea. I had problems selling Djinn Muirat now I am trying to sell golden GRUM FLAMEBLADE and it is also not happening as fast as I would like. Having a big part of my funds frozen in one card may not be ideal. So most likely I will stop buying golden legendaries once I will sell GRUM FLAMEBLADE.
As price of DEC declines, perhaps what people are willing to pay declines too.
Hahahaha Taraz I must admit I didn't read much of your post because I know sweet bugger all about Splinterlands, I did read the comments though in light of your title and I laughed my ass off. Thanks for that.
:D
That is some huge amounts mate! Keep up, life changing!
However, I do not like the declining price of DEC. I have a lot myself and the psycological aspect of this is really tearing me apart. When we saw prices of dec at 0.016 it was insane but now the same amount has decreased by around 90%. Meaning if we where to put it in dollar terms one mill USD has become 100k USD.. it is so sad, lol!
Anyway keep acumulating (not financial advice), one day we can laugh at this comment of mine😅
Cheers!
It is only lifechanging in some countries at this point perhaps - not quite where I am :)
Just remember that it was meant to be loose pegged to a dollar per 1000, so where it is now is technically up.
haha yes indeed! can't complain!
rn I am buying lots of cards with my limited resources as I think they will go up in value (or maybe: they probably wont turn into dust long term) + there is renting aspect
so I hope all goes well :)
With the coming changes in rewards, it might be that a lot of cheaper cards are going to be soaked up by the bot players, so that might work out well for all holders.
I keep thinking about this - what coming changes in rewards?
I have a feeling I am missing something here as I am not that much into Splinterlands :/