Splinterlands - Staked Splintershards will determine the rewards caps

Splinterlands continue to build and keep the players engaged, but besides the gameplay itself also the tokenomics are important for user retention and even new onboardings. Play2earn blockchain games are appealing to a new kind of players especially because of the earnings angle as besides having fun, some of us also want to earn from it. GameFi for sure found a good place within the Splinterlands realm and lately there are some announcements that are intended to improve the space. And one of them is adding a new use case for Splintershards $SPS in the form of being a requirement to have it staked in order to maximize one's possible earnings in the game. And I think this is something that we all have been waiting for a long time.

Staking Splintershards is not a requirement to enter a specific League in the Splinterlands, but it will determine the rewards caps. In the Splinterlands Town Hall Summary - May 15th, 2023!, the team announced the addition of this mechanics in the equation of earning $SPS while playing Splinterlands. And we have a current list of SPS requirements according to the Player Rating and correspondence with the available Leagues, from Bronze until Champion.

SPS staking

This move alone has provided a strong use case for Splintershards stakers and it should have some positive impacts on the market considering that until now the only use case for SPS staking was to participate in DAO voting. And that was just not enough to give value and incentive for the governance token, which is the asset that all are harvesting using different mechanics. Once it will be implemented and pushed into the game, I think we will see some positive effects regardless or real players or bots as this will tap into earnings if not holding enough.

SPS delegation

In addition to this move, the Splinterlands team already prepared the terrain by adding SPS Delegations within the game. That will help actions of delegating SPS from the main account to alts, but also to other players. And on top of that we could see a new market arise for renting SPS just for this purpose which alone should provide another mean for players to earn.

SPS supply

I still think that we will end up with a huge supply of 3 Billion SPS and based on that I don't see the price of SPS being able to go higher than $0.10, which would give the Splinterlands game a Market Capital of $300 Million which I think is quite high, but could be reached in a bull market. To try and balance this I would like to see also some burning mechanics, which might be possible if the DEC gets peg and from it to have a flywheel effect that could impact positively and determine SPS burning. But that's something based on IFs and is not something that we can say for sure.

Myself I have been staking SPS since the governance token was airdropped and afterwards could be earned by playing Splinterlands. There was a time in the beginning when the Circulating Supply was low enough that it pushed its price as high as $1.07, which could have provided me some amazing returns if I would have sold. But I've always considered Splintershards to be a valuable asset, a gem that all will want it. But as its use cases delayed to be implemented, its price was pushed x50 down. Now we see the game founders paying some attention to that and trying to revive the Splinterlands tokenomics and hopefully with that my waiting will be justified, even if nowhere to what once was. Bottom line, I welcome this change of adding staked Splintershards $SPS as a prerequisite to earnings in the game and establishing the rewards caps from battles.

Come and join the amazing world from the Splinterlands!

Posted Using LeoFinance Alpha