b71f95d05cafb59a2b2e2fb9ef6a0e92d9c8916d
The Issue
Until now past proposals have tried the address the SPS supply issue in a roundabout way by producing proposals that attempt to get DEC to peg and start up "The Flywheel". Realizing this effect could take many years, even if DEC is brought to peg simply because the emissions rate/supply of SPS is so high. It is clear the emission rate is far too high and we will continue to see a slow decline in SPS price which is bad optics for a web3 game we hope to attract new players to and does not instill confidence to current players spending money to P2E. The initial SPS supply decided upon years ago was ambitious for sure, but now we have years of data now that show us this max supply is far too large for the size of the player base. I think its time to act on this data for the good of the game.
The Proposal
I am proposing to deal with the max SPS supply in an amount totaling 500M SPS or roughly 25% of the outstanding supply. A total of 400M of this will be burnt/never minted and another 100M will be given to the DAO for future unforeseen needs/project development/new game token pools. I am proposing the caveat that this SPS CANNOT BE ACCESSED until all other current SPS pools are exhausted. This can be edited with player feedback if they feel all should be burned.
I am proposing that the SPS distribution phase should not be extended as a result of this cut. Thus, this 500M supply cut should reduce emission rates of the remaining pools by roughly 25%. I will wait for team assistance in how each pool would be impacted and this number is accurate. In the purpose of fairness I feel all pools should bear the brunt of effects of these cuts equally (Land, LP, Brawls, Ranked Battles, Validator Nodes, ect.) The team is free to subsidize any of these pools with Team SPS if they see fit.
Benefits
- The goal of reducing the SPS supply is achieved quickly instead of taking years.
- Emissions are cut to better align with the demand and the token price should stabilize and instill more confidence in the game economy.
- More accessible riftwatcher packs 😘
Potential Drawbacks
- Rewards are reduced, but hopefully higher token prices offset this loss in absolute token amounts obtained.
- Certain investors (particularly validator/LP providers) may be upset that they bought into these assets with certain expectations on earnings.