315% ROI on Land In Phase 1.5?

Land 1.5 Phase is approaching slowly but surely. Every serious investor is doing his calculations and writing down on a piece of paper how much can he earn. Is it better to invest in Land or SPS? Or maybe cards are a better option. Or there is something better? This time let's dive together into Land and how much can it give back in Phase 1.5.

Let's calculate how much USD we can earn for 1 Common plot of Land with GF Common Chaos Legion cards.

Farming will produce Grain tokens over time. Those Grain tokens can then be used to feed workers performing other tasks or sold on the market. Grain tokens will be produced at a rate of 0.02 PP(Production points) per hour.

One of our workers that is GF(Gold Foil) Max-Level Common Chaos Legion card will produce 2000 PP per hour. When assigning cards to land plots, it is important to keep in mind that certain elements receive production bonuses on certain terrain types and receive production penalties on other terrain types. It means that if we want to farm Grain on the River tile we will have to use Water cards so we can get a +10% bonus for our PP production. That means that the card that we mentioned before will produce 2020 PP per hour, which equals 40.4 Grain per hour.

Keep in mind that the workers farming Grain also need to consume food themselves, and if they are farming Grain they will just consume a portion of the food that they farm. Workers will consume Grain at a rate of 0.01 Grain per base PP they provide per hour. So our max level Chaos Legion GF Common card produces 2000 PP per hour which means it must consume 20 Grain per hour.

With some simple math, we can calculate that we will earn 20.4 Grain per hour from a single worker. On a single plot, we can have 5 workers (in most cases) so our overall Grain produced on one plot of Common land would be 102 Grain per hour.

Now there is one additional factor that we need to count in and that is taxes. We have to factor in a 10% production tax of 12 Grain per hour (10% of 102) and we get a total net Grain production rate of 91.8 Grain per hour.

It means that we would earn 2203.2 Grain per day.

Now you ask yourself how much money is that. If you ask me I think that there will be a shortage of Grain on the market, at least until Phase 2 when there will be more efficient types of food for our workers.

If we take into account that workers consume Grain at a rate of 0.01 Grain per base production point and that they farm Grain at the rate of 0.02. It means that one worker will produce a profit of 20.4 Grain per hour and on our other plot each worker will consume 20 Grain per hour. That means that for each plot where we are farming SPS, Research Crystals, Wood, Ore, or Stone we need one equal production plot where we are farming Grain. With that in mind, I think that Grain will be very important in the Splinterlands economy.

It stands in the whitepaper that players will be able to buy 1 Grain for the price of 1 DEC. That means that eventually every Grain would be sold for 1 DEC (0.0007712 USD - at the current market prices). But we must be realistic and we must say that on the secondary market, we could sell 1 Grain for maybe 80% of the DEC price. That would mean that 1 Grain would go for 0.00061696 USD.

That means that in one day we would get 1.359 USD per plot with 10000 PP. If the price of DEC goes up to 0.001 USD then that would be 1.762 USD.

So let's calculate the return on investment.

At this moment one common land plot where you can farm Grain is going for about 50 USD. Then we need to add 50 000 DEC as fuel, and 5 cards that are going for about 13-15 USD per card. We can take an average of 14 USD. So in summary these are your expenses:

• Plot: 50 USD
• Fuel: 50000 DEC = 37.3 USD
• Workers: 70 USD

So in total that is 157.3 USD. With the daily return of 1.36 USD we would make even in 115.66 days. So if my math is correct that is 315% ROI in a year. Of course, the price of the grain could be way lower than 80% of DEC so ROI could be way lower too. In Phase 2.0. all resource types will be introduced like Wood, Stone, and Ore. Potentially that could drive the price of Grain even higher as more players will need Grain. It is hard to predict price and therefore ROI but we can hope for the best.

In the end, this is not financial advice. Do your own research as this one could be wrong. Seriously, do your research before any investment as all investments carry risk and especially in the crypto market.

It is the perfect time to buy some cards and rebuild your deck. Packs are not selling as fast as expected so prices are stable. I expect them to go down even more once we sell more packs. But there is always a possibility of new players joining and buying tons of cards, so be careful. If you are not playing #splinterlands yet, now is the perfect opportunity to join while you can get all those amazing cards at special prices. Come and join Splinterlands Discord and find out more.

Official Splinterlands Discord: https://discord.gg/A6yNcVqbU6

If you are new here

If you are new here, #splinterlands is the amazing #NFT trading card game with the #play2earn model. That means you can have a lot of fun AND you can earn money (DEC - Dark Energy Crystals) at the same time. If you don't have an account yet consider registering with my link. If you sign up with my referral link, please DM me and I will send you 100 DEC that will help you start with the game(of course if I see you on my referral list).

https://splinterlands.com?ref=vjekich

Have fun and see you on the battlefield.