Splinterlands - My proposal for dynamic APR rewards similar as to the KE ratio on the Hive blockchain
There is a lot of buzz around the latest draft proposal for SPS Governance to extend staking rewards as some are seeing that as incentivizing holding SPS without utility and that the staked SPS often floods the market. While they might be right in general, in my case I am staking all the SPS that I can grab my hands on as a long term investment and thus I keep it far away from the market. And I want to believe I am not the only one. But what I would like to propose is a "dynamic staking" which has a different APR % based on the investor behavior of keeping it staked or selling it on the market. This would be similar with the KE ratio that is available on the Hive blockchain and where even Splinterlands uses it for curating content related to the game. So why not move a similar mechanism inside the game as well? If this would be done I believe it would be brilliant and a step closer to healthier tokenomics by incentivizing long term investment and vision.
Improving governance value from staking
Moving to a staking distribution model dynamic based on the staked period and the movements IN/OUT of the wallet, I think would help with locking the Splintershards assets for longer periods, thus minimizing the market volatility for the asset and helping with the scarcity on a short to medium term. Some might say that there is no utility in staking, but I see that as a way to keep assets away from flooding onto the market. By giving a little bit more earnings to those that HODL the assets long term, other's behavior will change as well. Because who doesn't want more from the precious Splintershards gems? Well, I surely do!
Implement more fair and sustainable models
Rather than having players milking Splinterlands for SPS rewards in the same way as users are milking the Hive blockchain for HIVE/HBD rewards, we could move to a system more based on meritocracy and adherence to the future of the game. I've always seen myself as a stakeholder in the game through holding SPS governance assets, so why not try to make other see that and inspire opportunity by holding long.
Dynamic rewards extended to all game economies
And we can even not stop on staking and use dynamic rewards also in ranked battles or even land earnings. They all can have their own lane for calculating an investor score or we can have the math broaden to all the income sources. But maybe going this way will energize this ecosystem into not flooding anymore with SPS and putting almost all the time selling pressure. And if we couple this with better onboarding and organic marketing which already happens, we would truly see real value getting in the Splintershards tokens.
Bottom line I think we shouldn't stop innovating and looking at more ways to approach the investment in the game and the way rewards are given. Taking the path with incentivizing more those that hold for SPS for longer periods of time, will touch existing big investors but also the incoming ones. If we solve the equation of Splintershards going to the market due to low incentives, probably also its value will increase due to scarcity. And this is just one angle or layer for trying to improve the tokenomics and I am sure there are many more which finally could skyrocket the value of SPS. We just need courage to innovate and try new things while keeping in the corner of our mind that we can always take a step back if it doesn't play out as we see it. But it should be our duty to at least try it out.
What do you think about it? Could dynamic APR rewards similar to Hive's KE ration work to improve Splinterlands tokenomics?
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I think it is a noteworthy idea, similar to the dynamic model we use with staked SPS rewarding our rShare %s for Glint & SPS ranked rewards.
How do you handle SPS that is earned through reward delegation from another account? Does that count against your personal KE ratio since someone earned it playing on a different account?
What about all those non-playing 3rd party software companies that just support automated outcomes in Ranked. They get plenty of rewards they need to sell to keep the servers running, so now they are penalized with reduced rewards from their delegations or no pinch at all?
Still great food for thought and I think dynamic proposals in general are a good fit for long-term guodance from SPSDAO. Thank you for your proposal!
All are good points and I agree things are quite complex. My idea was mostly to keep it simple: check SPS staked/in the wallet vs SPS earned and from it derive the KE ratio. If someone would have sold a lot, than this ratio will not be good. Use the KE ration as a coefficient in any granted rewards going forward.
I think it could be a good proposal
!PIMP
Yeah, I've pushed the idea also in today's AMA. But the feedback is that redesigning the rewards system puts too much work on the team and that they have limited resources. So probably it is a Ney for now... but at least I put it out there.
This is good thinking and I hope more eyes get a look at this. The KE ratio for Hive is a nice feature and I use it all the time before deciding if and how much to vote on a post. Great idea to see something like this incorporated into SPS staking.
True, it would create a more fair model incentivizing long term investors and players. But it seems to be a heavy implementation to do based on received feedback.
Well, even if it's hard to do, it must be possible. But maybe not, I'm not a programmer. It sure is an excellent idea.
This is a good proposal more staking more rewards..lets put that simply. cheers
More staking, higher APR% rewards for long term investors. For those selling right away the APR% will simply go down....
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