Still Undecided...
I gave some more thought to this proposal from the SPS DAO. Just trying to figure it out myself if I should vote for it or not in this form.
While it was presented by Splinterlands, since they are the only ones who can make proposals currently, it looks like they may not be at the origin of it, but they adapted it. Watch yesterday's Monster Mavericks show for details.
While I have concerns it won't work as intended, it can be an interesting experiment. And it is an experiment, with a limited lifetime, in theory. The only thing that won't be limited about it would be the new token, DEC-B. And we have seen some strong opposition against another token in the ecosystem.
Once created and added to the ecosystem, it will continue to be part of it and play a role, especially if free trading can go on between DEC and DEC-B, directly or indirectly. Regardless of whether the amount of DEC or VOUCHERs to be burned through this proposal is capped and there will be no follow-up proposals to extend that. Unless the functionality is added to the game and then removed, which would be a hard-to-understand waste of resources and time. Even as is, there is opposition against what is perceived as another step sideways from working on actual game development. Even if things can be done in parallel, looks like patience is at the limit these days.
What do I find interesting about it?
If the new tradable token won't be abused to create more inflation for DEC (instead of being used as intended, for future DEC expenses on use cases that burn DEC), it is a way to save up DEC equivalent at a discount (DEC-B) for the costs you foresee and plan ahead, especially for building upgrades on land. The question is what guarantee do you have that DEC-B doesn't lose value compared to DEC over time? None. It's a free market, and DEC-B would be tradable. It could go up in value, but why? It wouldn't make much sense because it has fewer use cases than DEC and everything you can do with DEC-B you can do with DEC as well. In the ideal scenario where DEC-B would be hard pegged to the value of DEC, it makes sense to lock your DEC as DEC-B if you plan to use it for certain use cases and receive an instant 20% bonus for doing that.
Otherwise, maybe it's just safer to use one of the DEC-stablecoin liquidity pools for roughly 15% APR or save up DEC without looking for any additional return (hmm, who wants that, right?). Or you could swap it to HBD and put it into savings until you need it.
There is one more thing. LP rewards are paid in SPS, which put pressure on the price of SPS. Something like this discount offered through burning DEC (or VOUCHER) for DEC-B doesn't create additional SPS, but as I mentioned a couple of times, introduces the risk of creating more DEC for a limited time. It also has a chance of bringing the price of DEC to peg, which would be really good for starting the SPS burning mechanism.
There are potential benefits, there are trade-offs, there are potential pitfalls, and this requires dev time. Still a hard decision for me on this proposal.
And one more thought. If VOUCHERs wouldn't be part of this proposal, would it even be a proposal? I may be wrong, but I believe DEC matters are entirely up to the Splinterlands team.
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It is a hard one for sure, it does reward investors but the new token is a hard one.
Yes. Decentralized governance is difficult. There were only a few proposals that didn't create (almost) any discussions.
I hope they will adopt your purposal, if it's going to help the game to grow. Splinterlands already have many tokens and packs. hopefully it will help.
It's not my proposal. But I'd have a proposal to their proposal: to make DEC-B non-transferable (which includes non-tradeable).
Personally I rather they fix/improve the gameplay to attract more players instead of constantly trying to force the "peg". Oh well.
It's hard to get new players in during the bear market. Even if they come out with super cool game-related features. So, I understand why they try all sorts of tricks in parallel with working on new features. I just hope that won't postpone land too much. It has been postponed for so long already.
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This is a stupid idea to put it bluntly.
20% off is just gimmick. The real intention behind this is another use case for vouchers.
It wouldn’t sound as bad to have another token in exchange for voucher, than propose to exchange voucher for DEC.
Regardless this is creating 20% or more inflation at least, that could be avoided if we just use DEC.
Better way is to just ask for DEC (and voucher) for land related but apparently DEC/voucher is too complicated and DEC-B (call it land DEC) is simpler.
It will create more inflation, but how much more it's unknown. Because you can't count DEC-B as DEC unless people burning VOUCHERs and DEC for DEC-B sell it for more than 0.8 DEC for every DEC.B and are not interested in holding DEC.B (who would, if it's more profitable to sell it?).
Without the 20% bonus (or a different percentage), nobody would be interested in burning DEC for DEC-B, when there are alternatives to earn some return while accumulating DEC.
It’s a dead token. DOA.
That's why I wouldn't have made it tradable. At least that way it made some game progression sense.
Agreed
DEC already is at a 37% discount add another 20% and you are practically giving away the items it is to be use to buy with. Who currently owns DEC other than bots and card sellers. Real players spent their DEC long ago on cards and packs.
!PIZZA
That's a good question. I certainly don't. I spent it all on maxing out CL edition cards.
We all have to vote no. This is the worst idea.
I don't believe it's the worst idea. Not the best either, for sure. :)
Tough choice, hope you will be able to come to a conclusion soon.
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Yeah, at least I'm not a whale. My vote in either direction will likely not be the swing vote. :)
Thanks for the info Gadrian.
Barb
#thriveonhive
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You're welcome, Barb.
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I honestly think it's better to not have the extra token as simpler is better when it comes to users. It's going to annoy people and get some getting used to it if they do add it. It just seems all over the place because they keep trying to force DEC back to the peg.
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