Hello Splinterlands community,
Following the recent update regarding third-party markets and burn handling, this post summarizes how Elmo Market currently operates and why I am requesting continued fee participation.
What Elmo Market Does
Elmo Market is a third-party marketplace for Splinterlands assets with standard trading and filtering functionality.
Every market transaction contributes to a system that:
- gives instant cashback to buyers,
- funds a monthly community bonus pool,
- buys SPS that enters the burn cycle,
- and helps sustain the market infrastructure and maintenance.
How the 4% Market Fee Creates Value
In the Splinterlands ecosystem, 4% is the standard market fee level. On Elmo Market, this fee is split across cashback, bonus pool for top traders, SPS buyback for burns, and operating costs.
The Elmo Market fee distribution is:
- 2.6% instant cashback to buyers
- 0.1% to the monthly bonus pool
- 0.3% to SPS purchase for the burn cycle
- the remaining share supports operations, infrastructure, maintenance, and long-term market sustainability
Instant Cashback for Buyers
A portion of each transaction is returned directly to buyers as instant cashback.
Monthly Bonus Pool
Part of each transaction goes into a monthly bonus pool for top traders and is distributed on a recurring basis.
The SPS Buyback and Burn Cycle
Fees allocated to SPS purchases are routed into the Elmo burn system. SPS is burned to generate DEC, and DEC is used again to buy SPS while burn conditions remain valid.
The burn cycle currently requires the burn rate to remain economically viable. SPS burns are only executed when DEC reaches the required price threshold (minimum around 0.00097 USD per DEC). In addition, each burn execution has a maximum SPS amount cap, so only a limited SPS amount is burned per cycle.
Why This Matters to the DAO
Current impact points:
- it supports SPS through ongoing buyback and burn activity,
- it improves user retention through cashback,
- it funds a monthly bonus pool for top traders,
- and it keeps a consistent utility loop between market activity and SPS burn operations.
Elmo Burn has already burned more than 1 million SPS, with 131,493.5 SPS currently waiting to be burned. Based on current projections, that pending balance could result in roughly 4 million SPS burned through the full recycle effect, which would be a meaningful contribution toward supporting the token economy.
Elmo Burn currently ranks 26th among all accounts that have burned SPS. If the system continues and another roughly 4 million SPS is burned through the recycle cycle, it would move significantly closer to the top burn accounts in the ecosystem.
Every additional market transaction strengthens that process.
https://elmo-burns.com/ provide SPS and DEC dashboards for tracking these metrics, and as usual on Hive, activity can be independently checked on-chain.
Why Elmo Market Should Continue Receiving Fees
The practical DAO case is:
- more market activity that benefits players,
- continued SPS buyback and burn pressure,
- more community-aligned rewards,
- and stable operation of an existing market that has already been active for about a year.
My goal is to operate a market that supports Splinterlands assets in the long run while rewarding the community and helping strengthen the value of SPS and DEC.
I believe this aligns with SPS DAO interests, and I respectfully ask for support so Elmo Market can continue operating under this model.
Thank you for your consideration.