Splinterlands DHF Proposal Got Approved... Again
Some three days ago, the Splinterlands DHF proposal received the vote of @theycallmedan which propelled it well above the return proposal threshold.
The proposal was briefly approved shortly after becoming active, but then an entire drama started and that led to the RP threshold being significantly increased and the Splinterlands DHF proposal being kept in check, at a "safe distance" from being approved.
About 10 days ago we found out publicly that negotiations have been carried out to unblock the situation. Those negotiations led to a SPS DAO proposal that proposed a tradeoff. Unblock the DHF proposal to the Splinterlands team for marketing, against a significant investment of the SPS DAO in the Hive blockchain (situation at the time is almost no investment), plus other conditions.
The draft of the SPS DAO proposal was supported by more than 90% of the voting stake, and there was a significant participation to that vote... And yet, the Splinterlands DHF proposal remained unfunded, because the deal was to wait until this proposal passed (meaning a full 14 days). With each passing day, that meant less funding to the Splinterlands DHF proposal. And it's not small change, since it's 2777 dollars a day. In 10 days that's $27,770. Plus already around $70k missing by not being approved so far. But Hive stakeholders have the right to adjust the amount being asked if they consider it's too much, by dropping a proposal's funding temporarily. At the same time, the receiver of the funds should know what they can count on, so they can make some plans. So, too many switching between funding and non-funding is probably a bad idea for most proposals.
A few hours before the draft SPS DAO proposal was about to be approved (which it was), @theycallmedan voted on the Splinterlands DHF proposal, which pushed it into the funding zone:
The draft SPS DAO proposal was approved, and now the full proposal it's up to the stakeholders vote again. Nothing significant changed regarding support for it since the draft phase, it's still above 90%.
For people who don't know, proposals on SPS DAO have two phases:
- the draft phase, lasting 7 days, where it needs at least 5% of total SPS stake voting either for or against it to advance to a full proposal; during this phase, the proposal text can still be changed by the author (according to feedback or however they want to)
- the full proposal phase, lasting another 7 days, where conditions for approval and becoming effective are: 2/3 approval + 10% of total SPS stake voting
Note: one has to burn 100k DEC (68-69 USD, at current prices of DEC) to make a SPS DAO proposal. Sometimes they are sponsored by others or by the DAO itself.
So, currently, the Splinterlands DHF proposal is approved, having a support of around 35.5m HP, with the return proposal at around 32m HP.
The SPS DAO proposal which states, among others that the SPS DAO will [likely buy, since it doesn't own and] stake 1 million HIVE for at least 2 years, and that it would move 130k of stables into HBD, via HIVE conversion, still has 5 days until the end of the voting window. However, it has 94% approval, at a high participation (over 200m staked SPS), and to me, this decision seems already taken, even though, theoretically, like on Hive, voters can change their minds while the proposal is active. But so can those on Hive, so I highly doubt this will happen.
As a Hive and Splinterlands asset holder, I like this arrangement, although it may not be perfect. But the situation as it is is far from perfect. So, sometimes we have to take what is being offered and do better next time.
Hopefully a lot better next time. And Splinterlands needs to learn how to balance a budget for the business so they aren't always running out of money. If they come back again asking "May I please have some more sir?" I seriously doubt they would ever get support again.
I hold a lot of Splinterlands assets too, and I'm frustrated with them not knowing how to run a business. If you took accounting 101 and econ 101 in college you should understand money doesn't grow on trees!
That is so unfortunate, because they were so up there. As you said, a more balanced approach, better focus on their core product, and they would have been in a much better situation today.
I think the reason why some people might think that sum is too much is because there are no plans stating how that funds might be used. I also think some people are worried about the selling pressure initially, so it spooked so many Hive faithfuls.
Shootout to theycallmedan.
I was a bit worried about that too, but they already mentioned in the DHF proposal that they would sell through LP and DEC and not through HIVE.
Of course, I learned this too, but has there been an official post talking about this?
The DHF proposal is as official as we can have. So yeah, I believe this process is set in stone and will probably be checked on to be respected.
Oh. I didn't realize that there were two steps. I am glad that they are being funded but I do expect it to be approved. It's not perfect but it gives Splinterlands a chance.
Yes, it's a two step system. I'm sure others might be confused by this too, thinking they already voted on a proposal (and they only do in the draft phase).
The funding, even slashed, should help indeed.
SPS has been doing good. The old promises are slowly being delivered. I think we are on a good start. Once NPE is ready, we could make marketing into a serious priority again. It would be a good idea to have most of the HBD staked. Overall the "compromise" may end up being financially beneficial for DAO. If we see positive results with onboarding, we could ask for more money to promote what has become HIVE's flagship DAPP. It will be mutually beneficial for both parties.
We'll see. By how the SPS DAO proposal was worded, they didn't sound too anxious to offer another funding round.