SPS Governance Proposal - Price Riftwatchers Packs in DEC
c1f268aab53c0370df1946863f70b7e6c3f07b7b
I would like to put forth a proposal to the community of staked SPS holders to change the pricing of Riftwatchers booster packs to be a fixed amount of 5000 DEC tokens per pack instead of the current $5 USD worth of SPS tokens. All DEC tokens spent on purchasing these packs would go to the DAO, and the bonus packs and VOUCHER token requirements would not be changed.
The proposal aims to send all of the DEC to the DAO because the DAO is the entity that is offering these packs for sale, and as such it should receive the proceeds. If the staked SPS token holders would prefer that the DEC be burned, that is fine, but I believe that it should be a separate proposal. This proposal is intended to focus solely on repricing the packs.
The reasoning behind this proposed change is to provide more value to DEC (which will in turn provide more value to SPS via the burning mechanism) and provide more revenue for the DAO by driving more Riftwatchers booster pack sales.
The tokenomics of the SPS token are entirely designed around the concept of in-game products being priced in DEC tokens, and then allowing SPS to be burned to mint DEC. The problem right now, as I see it, is that there simply isn't enough demand for the token with the current products that are priced in it. While I don't expect that this one change will singlehandedly increase demand for DEC enough to kick off the SPS burning mechanism, it will certainly help to move things in the right direction and I don't see any real downside to it. The more we can do - the more products we can offer for DEC - the higher the chance we will have of turning the economy around.
Pricing products in volatile currencies like SPS is very bad for sales and I believe that it is slowing down sales of Riftwatchers packs, which is detrimental to the DAO and the ecosystem as a whole. Many people do not want to spend tokens that they expect may be worth far more in the future, and for good reason.
That is what is so amazing about the system that has been designed here whereby products can be sold for a fixed amount of a relatively stable token - DEC - which people aren't as hesitant to spend because there is little potential for price appreciation, while still providing value back to the SPS token via the burning mechanism.
It is literally a "best of both worlds" solution, in my opinion, but it doesn't work unless the products are actually priced in fixed amounts of DEC which is why I am urging the community to approve this proposal as well as to continue to push for more ways to create demand for DEC in the future.
Thank you for participating in SPS DAO Governance @yabapmatt.sps!
You can place or monitor SPS Stake Weighted votes for and against this proposal at the link below:
Link to this Pre-Proposal
Updated At: 2023-06-20 15:40 UTC
I really wanted to see this as $5 in DEC not 5000 DEC. The SPS amount required is variable for RW, why shouldnt DEC be? The DAO is entitled to more DEC if the price is below peg.
because the effect on the buyers is better that way. as soon as the dec price drops people buy riftwatcher packs, so the dec goes up again etc etc
do it please pass this. yup its definitely slowing down sales. It's about time this proposal came to be. Thank you for burning the DEC to get this out there :D. I'm all for this since I feel it's good in the longrun for Splinterlands! Lets goooooo
I respect all you've done for me and the community. I know this is an issue you believe is important.
I am voting for it to support you and your plans.
Same.
Unless I find something to be totally off I will always vote with the founders as Matt especially has a deeper understanding of these things than I could ever hope to achieve.
What miss me in this proposal is the question how this repricing will be done.
I mean it will be like at the initial Riftwatcher-Sale that in 1 minute 39 seconds is all (from the first 500.000 packs) are sold out ?
How you want prevent this and give everybody a fair chance to get some packs after the price will be set to 5000 dec ?
Seems highly doubtful they sell out that fast when packs are sitting unsold on the marketplace…
You are sure ?
Let's calculate ...
At the moment you pay for a riftwatcher pack arround 3.6$ at the market ...
If they will be sold for 5.000 DEC it would be arround 3.9$.
So for 2400 pack you pay 2.000 x 3.9$ = 7.800$ + 2.400 Voucher for 0.05$ each = 120$.
So you would pay 7920$ for 240 packs = 3.3$ / pack. That mean you can buy a pack WITH Airdrop-chance approximately 10% under the second market price WITHOUT Airdrop-Chance, you don't think that their can be a run ?
Since you want to calculate, let's calculate…
How much DEC would be needed to buy all remaining RW packs?
(Hint: it's more than the market cap of all issued DEC)
So to sell out means someone is burning SPS, which means DEC would be above Peg value, and the “discount” would be gone.
So yes, I’m quite confident this won’t sell out all remaining packs in under 3 minutes
okay you get your point.
So it seems to be no risk that all will sell out, but it can at least happen like it was by the initial release of the Riftwatchers that the packs till the next airdrop will sell out in this short period of time.
In every case I think since this proposal goes live nobody will buy riftwatcher-packs for 5$ in SPS.
Even when it would be a very good business in the past to use your SPS to buy riftwatcher packs compared to stake them when I see how the SPS-price dump more and more, but if you expect a further price dump you can sell your SPS completely and need not to buy riftwatcher-packs.
Agree with you - some people will be very happy about getting a discount... maybe we unlock another airdrop or two. Which would be pretty exciting.
My guess is that they have learned their lesson and corrected the code for airdrop levels, but I don't know for certain.
IMO they should set a time-frame like 24 hours and tell not important how many packs are sold in what time every pack who will be sold in the 24 hours after the price-change will qualify for the next airdrop (or two).
Unfornately @yabapmatt seems not to be interested to interact with the user who write comments to his proposal, in every case I cannot see any answer, but probably for him only the whales who decide the proposal are interested.
People will buy RW packs and prices will slightly drop, till reaching a new equilibrium between cost and EV.
Packs will keep selling only if people will buy RW cards off market. I don't see any risk of selling off too fast.
Anyway, I'm voting YES. It makes totally sense to me and DEC is closer to peg than on the previous proposal.
If the sales situations stay the same, then this change isn't a detriment to the current functions.
The same reasons that led me to vote against the proposal when it was originally proposed still stand valid, and even more so.
It's changing the terms of an ongoing sale, after it was promised by the team it would never price RW in DEC - in a TH when directly asked about it in the Q&A before the pre sale. While it is not unilaterally doing it, the initiave is coming from there;
It intentionally devalues an asset;
While everyone likes to buy things cheap, these kinds of 'discounts' are one of the main reasons for people to not buy packs at their normal or pre sale prices. One thing is to offer a discount in a pre sale, another thing altogether is this;
Many originally stated when rejecting the first iteration of this proposal, that maybe it could be more agreeable to price it for $5 in DEC at market price (instead of PEG value). This would also lock the DEC in the DAO, achieving the same effect or maybe even better effect (people believe DEC has a lot less upside so are more willing to part from it even if not at PEG);
++No new argument was made in order to support this proposal++.
And a somewhat new one:
And as a final note, I believe most of us want and believe it is important to get DEC to PEG, but not at all costs. Any measure taken to so has to have strong foundations and this one seems to lack them, as well as it needs to lack better alternatives which exist (DEC market price/stake on land/unlock soulbounds/cosmetics/remove burn from gladius/etc...).
Yaba is a member of the DAO, it's really irrelevant that he's also a team member. He sees something that he thinks should be changed to improve the economy.
It goes both ways, it devalues GEM packs and by extension RW cards, but that value is put into DEC, and by extension SPS.
The main reason to not buy packs is because the market is already oversaturated with cards. The original sale of these card packs was close to 10 months ago, sales have stagnated, lowering the price by 20-25% (current DEC value) seems reasonable. Another logical option is to start burning off the oversupply.
Agreed, this is a good option.
Time, it's not a new release anymore, people who bought the presale or regular sale have had many months to use and get value from their cards. Changing the price now is a lot more reasonable than it was at the time this was first proposed.
This will certainly not make DEC to peg, and doesn't claim that it will.
I would tend to disagree with this...
True we aren't at Peg. But DEC was at 55% of Peg when this was proposed 7 months ago. Each attempt has closed the gap more. We are whittling it down, but there is still too much DEC out there, so there is more work to do. Land 1.5 will be a big event, but then it will be relatively static, so we need to think beyond Land 1.5, because we need as many ongoing sinks as possible - and Land 2.0 is a long ways away still.
I think everyone underestimated how big of a job it was going to be to remove all that excess DEC liquidity. But we are getting there. Let's keep at it.
For the record, a LOT has changed since this original proposal failed 7 months ago:
While a change to the whitepaper is always significant, I think the potential for negative consequences has mostly passed, while the perceived positives from pricing in DEC are still waiting. If we launched a new edition or mini-set, I'm pretty sure the overwhelming majority of our community would agree that pricing in DEC would be the way to go. Pricing in a constant token price is simple and user-friendly, it allows use of credits (aka new money). I would urge you to reconsider whether circumstances have changed enough and whether the benefits of having a simpler system and consolidating most in-game shopping around a single token outweighs that?
Credits and DEC are simply less intimidating - agree, but Credits for a DAO sale I imagine are off limits (maybe someone could speak as to taxes here), would be a good mid term if possible, pay credits, SPL buys DEC at market, win win.
Suggested pricing at 8000 - most debates were around finding it somewhat acceptable at .95 or more compared to PEG (not .8).
Soon land - one more reason for this not to come (now anyway).
Eliminated other major sources of DEC printing - didn't help sufficiently so that reinforces this should not be done as proposed.
Other items have been successfully repriced to DEC - irrelevant.
Flywheel seems more within reach - same answer as 'Soon land'.
Thanks for the comment. Credits are converted by Splinterlands all the time as middleman to buy things on the market and deliver the DEC to the final destination. This is no different?
I'm indifferent to the exact price in DEC, as long as it's a FIXED PRICE, and ideally if they can incorporate the cost of a voucher burn as an upcharge or something. I'm okay with 5000 DEC, I'm also okay with 8000-9000 DEC (although that was proposed back when DEC was at 55% of the PEG, probably 6000 would be more equivalent)
"Soon land" isn't a reason for it not to come - it's actually a reason why we SHOULD do this... Let me tell you why I think that:
Let's say Land 1.5 will use a huge pile of DEC. At a minimum, it will 'encourage DEC towards PEG'. [Maybe, just maybe, DEC even breaks PEG for a bit, and some SPS is burned to rebalance?
But that's not the focus - let's look slightly past that. Once plots are loaded, DEC is more scarce, that's a good start. But we aren't going to have some surprise Land 1.75 to look forward to, to keep DEC on the ropes. We can't even expect relief from new Guild Buildings for a while, since we all pre-burned 500+ Million DEC and got ourselves lots of Guild Power. So we have to wait until Land 2.0, because there's not much in between.
So we should want to plan ahead, and set ourselves up now, while the near term outlook for DEC is mostly positive, and KEEP ADDING USE CASES FOR DEC to perpetually burn ANY new supply that comes on.
Maybe, if passed, they could announce that this change will take place one maintenance after Land 1.5 goes live, so the expectations for a "discount" are hopefully lowest.
Well put, strongly agree!
Regardless of what the price in DEC is: a fixed price DEC is 100% better player experience. If the in-game store can find a way to add an additional fixed DEC/credit surcharge to buy/exchange and burn the voucher, that will make the buying process soooo much easier for new players that just want to buy a pack with credits.
(Also why are we calling them GEMS in the store instead of RIFT Packs? Make it obvious for new players)
Make it at least 6500 DEC, still be around $5 currently, encouraging players to buy sooner before DEC goes back towards peg, while not being unfair to everyone who paid $5 in SPS for each pack.
And yes, please call it RIFT in the store, gems is confusing.
Yea thank you! I'm fine with 5000, but fine with 6500 DEC too. And would still want a surcharge to do the voucher handling too - maybe an extra 500-1000 DEC, but whatever feels right. Most important to me is this is much better new player experience, if they can do the entire transaction with credits only!
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i like it, vote for Matt
Don't forget that today, most players sell their SPS to get DEC. It's not really the desired effect
I wonder why @yabapmatt.sps thinks that people will buy RW with DEC when they don't buy packs with SPS ?
It is not like converting DEC to SPS is hard...
In my opinion, this proposal has a huge con of changing the pricing of packs midsale (which is a huge change) with literraly no pro as nobody buys RW packs. And IF people bought RW with SPS, would that be such a big negative for the DAO or SPL has a whole ?
Want more people to buy packs ?
Give them reasons to buy packs.
I feel that pricing in DEC should be at value, like the current offer for SPS.
I don't think the token is the reason packs aren't selling. There just isn't as much interest in the game. If you want packs to sell you have to incentivize it because at this point the vast majority of people that want to buy packs already have.
Packs should be valued at $5 in DEC, not 5k DEC. This would have a greater impact of moving DEC towards peg and starting the flywheel, and the price would naturally come down to the 5k value. This would also have less of a negative impact on current RW card prices imo.
Flat prices may be what we want to do going forward, but this is a special scenario where we are changing the rules as we go, so we need to keep in mind that people already bought these packs for (now) outrageous prices. And that is coming from someone who has bought zero RW packs. Everything I say is at my own detriment, but because it is what is best for the community.
I'm all for it. The packs aren't moving at all right now. The proposal's name could've been "So, uh, should we ever sell any more RW packs or should we let them all keep collecting dust?" The pricing was done when things were looking up more than they are now. Also, considering the RW packs are the only ones available and they're still not moving, that's another reason it makes sense to sell them in DEC. I'm indifferent to whether it's 5k DEC or $5 worth.
!PIZZA
$PIZZA slices delivered:
@sharkmonsters(1/5) tipped @yabapmatt.sps
The reason this proposal is being submitted at this time is probably because mini packs will be sold at SPS. SPS will continue to be tied to the demand for packs.
Great proposal, love it
When looking at the people who have voted I noticed that the top 15 votes all voted in favour and comprise almost 30% of the total vote. As you scroll down you see a lot of down votes. If everyone with staked sps only counted as 1 vote this would be a much closer race to pass.
Basicly this is going to pass on the weight of a low number of staked SPS holders with a large share of staked SPS.
Makes we wonder who this is actually good for.
I am not suggesting this is a bad proposal but i am somewhat on the fence about this.
I personally think this proposal should of waited till after staking of Dec on land had been implemented.
botfarms would be happy if every account gets a vote
There is never going to be a method that is 100% fair. They all have their own particulier downfalls. Some worse than others. Certainly the one vote per account wouldn't work and i am not suggesting we change things.
I just used that as a comparison of where things would stand with the real accounts that have voted.