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Splinterlands DHF proposal: It's ok, but...

Last week a post came out from @splinterlands about a DHF proposal that the team put forward. It immediately caught my attention and in reading it a lot of doubts and reflections arose, some of which I have already shared and which I have already discussed with the Whale Oil community. I would like to try to be a little more structured in this post, to understand, perhaps also with the help of some readers, if I am missing something or if perhaps I need to see things from a different perspective than mine which may be ( very) limited.

This is not a post for or against the proposal, but rather an attempt to clarify my ideas. I'm not an active player, although I think Splinterlands is an intriguing, simple and well-structured game, one of those easy to play, but difficult to master. However, I have some funds in SPS Power and I am interested in ensuring that they do not lose value, hence the desire to understand how the processes behind the game work.

Right from the introduction something makes me turn up my nose:

For years, Splinterlands has prided ourselves on operating a profitable business and on being able to provide significant value back to the Hive community who have made this all possible. We have purchased millions of HIVE tokens off of external markets, we have burned millions of HIVE tokens to create accounts, we have funded and initially designed and built two of the most widely used tools on the platform - Hive Engine and Hive Keychain - and we have brought thousands of users and tons of attention to the Hive blockchain during that time.

Surely everything that has been said is true, but the Hive tokens burned to create accounts were paid by players who, by purchasing a Spell Book, created their own account. If the intent is to say that they were the conduit through which they brought in many new users, I absolutely agree, but not that they burned Hive tokens to give away accounts. This is something else. (I, for example, paid Spell Book $10 to look up the account from which I am now writing to you.)

Another point that leaves me a bit perplexed:

In the crypto bull market mania of 2021 and early 2022, the company leadership at the time decided to expand massively and branch out to building many other game products and a blockchain-gaming platform (all on Hive, of course). This was done under the assumption that the bull market would continue indefinitely (or at least for quite a while longer) and that the more products the company could put out, the better.

Now, I am not an expert in financial markets, much less the cryptocurrency market, but I think everyone knows that the crypto market is the most volatile of all and a bull run can never continue indefinitely. No entrepreneur, CEO, CFO, investor could ever base a business on this assumption. It truly shocks me to discover that the Splinterlands team could have made this assumption.

Let's get to the problem: funds are needed.

most outside sources of capital that invest in the crypto/web3 space are either directly or indirectly affiliated with other blockchain platforms. In fact, most of the other top blockchains have specific VC funds and/or grant programs to encourage projects to build on their chain.

Obviously, each blockchain has financing programs for projects developed on that chain. In this way they try to attract more users, greater use of their crypto and consequently greater value, greater transactions, greater fees. It makes perfect sense. So obviously, when they need funds...

I have no interest in moving the game to another chain, as I truly believe that Hive is the best chain to support our mission, but if we're unable to raise the capital we need from the DHF and/or other investors who support us staying here, then it is possible we could be forced to do so at some point in the future.

From here then starts the request for half a million dollars, with, in my opinion, a vague justification as to what they want to do with these funds:

I have and will continue to do everything I can to keep the overhead costs of running the business as low as possible to ensure that nearly all of our funds go towards building the best possible product that brings the most amount of new people and exposure to the Hive blockchain as possible

and still

We are currently working on improving our onboarding experience to increase the conversion rate from new players signing up through spending money in the ecosystem, and once that is done later this year we are planning to launch a major marketing campaign - hopefully coinciding with the beginning of the next major bull market in crypto

and here I worry that we still find ourselves spending like crazy in moments of euphoria from the bull market and then crying when the bear market arrives (which always arrives), instead of building something that is solid and sustainable in bad times and from which to bring , yes, something extra profitable in good times.

and still

This is primarily what these funds will be used for - hiring a top web3 marketer and running a number of marketing and promotional campaigns to bring a significant amount of attention and active, paying users to the Hive blockchain through Splinterlands

Ok, but how much of that half million will be spent on marketers? how much for promotional campaigns?
This is perhaps the most critical point of all for me. Splinterlands is asking Hive users to fund their development through the DHF. I see the DHF as a Venture Capitalist on the Hive blockchain that finances projects on the chain. But instead of having experts who analyze financial statements, business plans and then grant financing, here there are users who vote.

This means that there is no need to produce and share a Business Plan to ask for these funds. It's a bit like if I went to the bank to ask for a loan to finance my company and the bank manager granted it to me because he knows me and I'm nice instead of wondering and studying how I intend to use that money, the repayment times or when my company will be profitable again.

This makes me think a little about this aspect of decentralization. Anyone, even those without economic/financial knowledge or expertise, can approve the granting of these funds, even just out of sympathy or because they have some interest. What guarantees do we have that what is granted will be spent in the best possible way? That whoever receives the money has a sustainable and not far-fetched project?

I think none.

This is not to say that Splinterlands' DHF proposal should not be supported. Everyone is free to do what they want. But personally, from the most important project on Hive, with a real company behind it, I would have expected more professionalism and a detailed business plan (not a roadmap, let's be clear, those are marketing things) on what it will do with the funds achieved and what prospects for returns for the game and hive has. Something that is measurable. Because if in two years' time other funds are requested and the data shows that the objectives set have been added, we will certainly be much more inclined to grant new ones.

Splinterlands is inextricably linked to Hive, just as Hive is to Splinterlands. I believe, and this is my position, that I will approve the DHF by giving confidence to the project. It's a lot of money, but if any project deserves it, it's Splinterlands. However, I expect greater professionalism from the team that I invite to publish a quarterly report with the expenses incurred with the DHF money. It could be, as well as a way to bring the community closer, also a valid marketing tool to make people feel closer to Hive and the players.

Come and play Splinterlands too: https://splinterlands.com?ref=stewie.wieno

Splinterlands DHF proposal: è ok, ma...

La scorsa settimana è uscito un post da parte di @splinterlands a proposito di una DHF proposal che il team ha avanzato. Ha attirato subito la mia attenzione e nel leggerla mia sono sorti un sacco di dubbi e riflessioni, alcune che ho già condiviso e sulle quali mi sono già confrontato con la communtiy di Olio di Balena. Vorrei provare ad essere un po' più strutturato in questo post, per capire, magari anche attraverso l'aiuto di qualche lettore, se qualcosa mi sfugge o se magari c'è da vedere le cose in una ottica diversa dalla mia che può essere (molto) limitata.

Non è un post a favore o contro la proposta, ma piuttosto un tentativo di chiarirmi le idee. Non sono un giocatore attivo, seppure ritengo Splinterlands un gioco intrigante, semplice e ben strutturato, di quelli facili da giocare, ma difficili da padroneggiare. Ho però un po' di fondi in SPS Power e mi interessa che non perdano valore, da qui il desiderio di capire come funzionano i processi dietro al gioco.

Già dalla introduzione qualcosa mi fa storcere il naso:

For years, Splinterlands has prided ourselves on operating a profitable business and on being able to provide significant value back to the Hive community who have made this all possible. We have purchased millions of HIVE tokens off of external markets, we have burned millions of HIVE tokens to create accounts, we have funded and initially designed and built two of the most widely used tools on the platform - Hive Engine and Hive Keychain - and we have brought thousands of users and tons of attention to the Hive blockchain during that time.

Sicuramente tutto quello che è stato detto è vero, ma gli Hive tokens bruciati per creare account sono stati pagati da giocatori che comprando un Spell Book hanno fatto creare il proprio account. Se l'intento è dire che sono stati il tramite attraverso cui hanno portato molti nuovi utenti, sono assolutamente d'accordo, ma non che hanno bruciato Hive tokens per regalare accounts. Questa è un'altra cosa. (Io, per esempio, ho pagato 10$ di Spell Book per cercare l'account da cui ora vi scrivo).

Altro punto che mi lascia un po' perplesso:

In the crypto bull market mania of 2021 and early 2022, the company leadership at the time decided to expand massively and branch out to building many other game products and a blockchain-gaming platform (all on Hive, of course). This was done under the assumption that the bull market would continue indefinitely (or at least for quite a while longer) and that the more products the company could put out, the better.

Ora, io non sono un esperto di mercati finanziari e tanto meno del mercato delle cryptovalute, ma credo che chiunque sappia che il mercato delle crypto è il più volatile in assoluto e una bull run non potrà mai continuare indefinitamente. Nessun imprenditore, CEO, CFO, investitore potrebbe mai basare un business su questo assunto. Mi lascia davvero esterrefatto scoprire che il team di Splinterlands possa essersi basato su tale assunto.

Arriviamo al problema: servono fondi.

most outside sources of capital that invest in the crypto/web3 space are either directly or indirectly affiliated with other blockchain platforms. In fact, most of the other top blockchains have specific VC funds and/or grant programs to encourage projects to build on their chain.

Ovviamente, ogni blockchain ha dei programmi di finanziamento per progetti che si sviluppano su quella chain. In questo modo cercano di attirare maggiori utenti, maggiore uso della loro crypto e di conseguenza maggiore valore, maggiori transazioni, maggiori fee. Ha perfettamente senso. Da cui ovviamente, nel momento in cui hanno bisogno di fondi...

I have no interest in moving the game to another chain, as I truly believe that Hive is the best chain to support our mission, but if we're unable to raise the capital we need from the DHF and/or other investors who support us staying here, then it is possible we could be forced to do so at some point in the future.

Da qui poi parte la richiesta di mezzo milione di dollari, con una, a mio parere, vaga giustificazione sul cosa si vuole fare con questi fondi:

I have and will continue to do everything I can to keep the overhead costs of running the business as low as possible to ensure that nearly all of our funds go towards building the best possible product that brings the most amount of new people and exposure to the Hive blockchain as possible

e ancora

We are currently working on improving our onboarding experience to increase the conversion rate from new players signing up through spending money in the ecosystem, and once that is done later this year we are planning to launch a major marketing campaign - hopefully coinciding with the beginning of the next major bull market in crypto

e qui mi preoccupo che ancora ci si ritrovi a spendere come pazzi nei momenti di euforia dal bull market per poi piangere quando arriva il bear market (che arriva sempre), invece di costruire qualcosa che sia solido e sostenibile nei periodi cattivi e da cui portare, si, qualcosa di extra rendimento nei periodi buoni.

e ancora

This is primarily what these funds will be used for - hiring a top web3 marketer and running a number of marketing and promotional campaigns to bring a significant amount of attention and active, paying users to the Hive blockchain through Splinterlands

Ok, ma quanto di quel mezzo milione verrà speso per i marketer? quanto per le campagne promozionali?
Questo forse è il punto per me più critico di tutti. Splinterlands sta chiedendo agli utenti di Hive di finanziare il proprio sviluppo attraverso il DHF. Il DHF lo vedo come un Venture Capitalist sulla blockchain di Hive che finanzia progetti sulla chain. Ma invece di avere esperti che analizzano bilanci, business plan e poi accordano il finanziamento, qui ci sono gli utenti che votano.

Questo fa si che non serva produrre e condividere un Business Plan per chiedere questi fondi. E' un po' come se andassi in banca a chiedere un prestito per finanziare la mia azienda e il direttore della banca me lo concedesse perché mi conosce e sono simpatico invece di chiedermi e studiarsi come intendo usare quei soldi, i tempi di rientro o quando la mia azienda tornerà ad essere profittevole.

Questo mi fa riflettere un po' su questo aspetto della decentralizzazione. Chiunque, anche chi non ha una conoscenza o competenza economico/finanziaria può approvare la concessione di questi fondi, anche solo per simpatia o perché ha qualche interesse. Che garanzie abbiamo che quanto concesso verrà speso al meglio? Che chi riceve i soldi ha un progetto sostenibile e non campato per aria?

Credo nessuna.

Con questo non dico che la DHF proposal di Splinterlands non vada sostenuta. Ognuno è libero di fare ciò che vuole. Ma personalmente, dal più importante progetto su Hive, con alle sue spalle una società vera e propria, mi sarei aspettato più professionalità e un business plan dettagliato (non una roadmap, sia chiaro, quelle sono cose di marketing) su cosa farà con i fondi ottenuti e che prospettive di ritorni per il gioco e hive ha. Qualcosa che sia misurabile. Perché se fra due anni verranno richiesti altri fondi e i dati dimostreranno che gli obiettivi prefissati sono statir aggiunti, saremo sicuramente molto più propensi ad accordarne di nuovi.

Splinterlands è indissolubilmente legato ad Hive, così come Hive lo è con Splinterlands. Credo, e questa è la mia posizione, che approverò il DHF dando fiducia al progetto. Sono tanti soldi, ma se un progetto li merita quello è Splinterlands. Tuttavia mi aspetto maggiore professionalità dal team che invito a pubblicare un report trimestrale con le spese sostenute con i soldi del DHF. Potrebbe essere, oltre che un modo per avvicinare la community, anche un valido strumento di marketing per farsi sentire più vicina a Hive e ai giocatori.

Vieni anche tu a giocare a Splinterlands: https://splinterlands.com?ref=stewie.wieno