Splintershards (SPS) Staking Rewards Ending in 11 Months... Or Not...
@clayboyn drew our attention to this schedule of expected and actual ending dates of SPS rewards:
Taken from Discord, clayboyn posted it.
He created this channel in discord, where things are being discussed, although it seems that without a deeper analysis of the situation, talk doesn't do much good other than potentially spark some ideas for people who can really know what's going on, with numbers and projections.
The first SPS rewards ending is for staking SPS, in about 11 months. That doesn't mean staking will disappear as an option, it simply means it will no longer be incentivized (currently with a 10.43% APR), unless another option to incentivize it will be considered and implemented after that.
But staking benefits, other than staking rewards will remain. Those are, currently:
- SPS DAO voting influence
- high influence on the rewards in Ranked Play
- SPS delegation rewards
- vouchers
- airdrop on Arcade Colony
- staking requirement on Soulkeep for higher leagues
Did I miss anything? And more use cases may be created. Do we really need staking rewards if we have enough other incentives? Well, that's what the talk is about, and if people say yes, then the next topic will be where will the new rewards come from. Because additional inflation would be REALLY bad, except in the fortunate event that Splinterlands brings in millions of new players, enough of them eager and excited to play the game and explore and test as much of it as possible. In this case, most of the problems would be solved by default and without thinking of any smart solution. But... maybe these are unrealistic expectations, at least for the time being.
Deeper analysis of the situation created by the reward dry out that will occur toward the end of next year, and the other ones further down the line, may be too premature though, even if it may not seem like it.
The numbers as they are now in their depressed state may be completely different from what they'll be next year, both in terms of prices and players and activity. On the other hand, whatever solutions are implemented should stand the test of time, which means they should be as independent of the activity level and price of assets as possible.
Personally, I have these opinions regarding the continuation of SPS staking rewards after they end according to the whitepaper, based on the following sources:
- additional SPS inflation - a hard NO, unless Splinterlands player base reaches millions of highly involved players (unlikely, to be realistic)
- switching some SPS from a burn destination to staking rewards (practically same as above) - a hard NO
- moving SPS rewards from something else to staking rewards - it depends, potentially yes
- DAO buying SPS from the market to pay staking rewards - potentially yes
- no staking rewards - I have no problem with that, since there are quite a series of incentives already
What do you think about it?
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The simplest place to start with reducing the amount of SPS given out in rewards as the players are onboarded. This can reduce sell pressure as buyers are coming in. We could extend the window by just halving the amount given in rewards.
That would require a passed SPS DAO proposal. But it is an easy way to still offer some APR and extend the deadline to some degree.
I was reading a bit of comments on your post and it's interesting to notice that on the days when token prices are going down, everyone is worried about inflation... And then, when we got a pump in prices, a bull run, the printing machine can go ON again, and nobody would notice, or ask about it... 😃
IMO, inflation is bad in both scenarios and we shouldn't forget that when/if better days for Splinterland come... Do you remember what happened a few years ago when millions were in the SPL team accounts? We were printing ALL possible and impossible tokens, even inventing new ones... (VOUCHERS, LICENCE, etc.)... We can't allow that to happen again...
I agree! I really hope the management of Splinterlands don't get hit by such a high degree of FOMO ever again...
What I meant regarding potential new SPS inflation for staking rewards if Splinterlands reaches millions of engaged players is that at that stage of its evolution, more tokens could easily be soaked up by the user base while also increasing the token price significantly. But I don't think we are in much "danger" of having to discuss that scenario, which would be very favorable for Splinterlands and Hive.
The only thing I see somewhat valid from your ideas is buying the SPS (but the DAO doesn't have money), since that's not inflationary. No staking rewards would be kind of sad :-D
There might be a lot of other benefits to be given out. Glint would be an obvious one, but could spark Energy-Inflation, and hence again SPS (at a very lower rate though). Maybe a title that helps on land for certain marks (10k staked, 100k staked, and so on). Something that helps getting forward in the game. Could be a higher voucher rate as well, and offering more cards and items in the voucher store. All balanced, of course (the Mana Warden is a great card, but also far from being OP - lately the team has done a great job on balancing cards, except for that Heloise beast 😅 )
DAO doesn't currently have funds, but I assume it will in the future. Besides this one, moving rewards from other places (Land after 2.0, LPs, etc.), is not inflationary either.
It's not sad with the proper incentives that don't involve more SPS being given to SPS stakers. You mentioned Glint as a potential additional incentive and gave the reason why that might not be a great idea.
I don't think a higher voucher rate would help since prices could be adjusted accordingly instead.
A title per levels of staked SPS could be an idea. Why not? But could also be used as a way to unlock certain high-level upgrades on land, besides the required land resources.
I only explored a few ideas myself and how I would feel about them. I'm sure there are many others and we will see many more.
Anyway, a big disappointment. I remember accumulating SPS when it was $0.40, only to watch it sink to a point where we hope to get 1-2% of that initial value.
Yeah... Unfortunately, a BIG way down from those days.
That's a real conundrum that needs to be solved and I think I know how it would be solved. Hopefully a better solution comes or it stays without any rewards, although then people will probably sell their SPS.
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You're thinking they will start printing more SPS? That would be a major mistake.
I wouldn't be so sure... Whales won't sell because they want the governance power. Players won't sell because it has a too much influence on Ranked rewards. Besides, delegation rewards will remain. If anyone has too much SPS and doesn't use it in the game, they can delegate it for an APR.
And that's only with the current options, and I didn't even mention vouchers, the airdrop, or Soulkeep again.
Good that there are still many options, we don't want more inflation.
I didn't know that the staking rewards would stop, but I think that might turn off some people. Even if it's still not there, I still will stake SPS because it increases Glint in ranked battles. Does this also mean that VOUCHERS will stop being dropped?
Nope. All rewards other than SPS staking rewards would continue. And for SPS staking rewards, I believe discussions just started regarding what to do about that.
Removal of the staking rewards is most likely to have a bad effect on players though it might help prevent inflation. Talking of the solution being the influx of millions of players into the game that's somewhat very unlikely. But hopefully the developers will find a way around this dilemma.
The staking rewards had a calendar to be paid out, mentioned in the whitepaper. Anything extra after that needs a decision from the SPS DAO. Splinterlands team will likely leave this decision, when it comes to it, to the DAO since this is directly under its umbrella.
The price has come down too much so people are very desperate until the price goes up.
Surprisingly, SPS has been doing better than most alts in recent months... So, let's see what the future holds.
Thanks for sharing the schedule of expected and actual ending dates of SPS rewards.
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This was positive, lol.
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