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First, before I make my reaction, if ever that I misunderstood something or you have other opinions, please comment on the post. I will also answer any questions to the best of my ability.
I've seen a lot of negative reactions on this while I feel like it's a really good move except for a few parts that I would also discuss below. So, I hope this gives a new light to others saying that this one's going to destroy the Splinterlands economy.
By the way, you can check the whole proposal by clicking on the link below:
@sps.dao/sps-governance-proposal-sell-2b-dec-b-for-dec-or-vouchers
The DEC Battery or DEC-B Proposal
The whole concept was very simple. You're allowed to buy Dark Energy Crystal Battery (DEC-B) Tokens by using Voucher Tokens or Dark Energy Crystals (DEC). Upon the writing of this post, the DEC-B Tokens will now be soulbound or non-transferable. This means any DEC-B Tokens you bought will and can only be used by the account that bought it. It's very similar to the in-game money called, "Credits."
The Use of DEC Batteries
Technically speaking, these new coins can be used as alternative payment options by "some" future projects within Splinterlands. As an example, if you're planning to buy a DICE pack and the pack allows you to use DEC-B Tokens, then you are able to use the said token to buy it.
The DEC-B Token can be purchased using DEC with ratio of 1:0.8 meaning each DEC-B Tokens can be purchased at 0.8 DEC. If the DICE pack costs 1000 DEC, for example, if you're going to purchase it using DEC-B, then you can pay 1000 DEC-B instead. This 1000-DEC B can be purchased for a total of 800 DEC. This means you "technically" bought the DICE pack at rate of 800 DEC (1000 DEC-B) instead of the full 1000 DEC or at a 20% discount of the full price.
This DEC-B Tokens can also be used as payment options for other projects such as:
- Land Survey "Potions"
- Guild Building & Guild Alliance Building Upgrades
- Building Upgrades, Maintenance, and Boosts in the Land Expansion
- Future "mini-editions" (such as Orbs, Dice, and Riftwatchers) pending DAO approval
- Skins & Cosmetics
The REAL Purpose of DEC-B Tokens
Unlike Vouchers, where you can buy with SPS and DEC, the DEC you used with this just circle around the market. In other words, you're simple "trading" DEC for Voucher Tokens.
In the implementation of DEC-B, the DEC tokens used to buy this currency will be "burned" instead of "trade." Since DEC-B cannot be traded and is attached to a single account, the amount of DEC circulating in the market will go down, which eventually will have an effect on the DEC Price by the rule of supply and demand. Since there would be lower DEC in the market, the price of DEC should increase.
At least, this is the idea behind the DEC-B Token.
The Demerits of DEC-B Token
It's not all ray and sunshine. For every positive things, lie a negative effect. The most impactful way I see it is you'll be stucked with the DEC-B tokens until you use it. For example, I would certainly be buying DEC-B tokens because I'm planning to stay with Splinterlands for long. I'll look forward to buying new packs in the future with the aid of DEC-B Tokens.
However,
My concern is when these packs where you can use DEC-B Tokens will be released. You cannot use DEC-B tokens for everything and only "some" projects they listed. If these DICE packs will be released 2 years from now, for example, then I'm stuck with these tokens for 2 years.
While you can also use it with:
- Land Survey "Potions"
- Guild Building & Guild Alliance Building Upgrades
- Building Upgrades, Maintenance, and Boosts in the Land Expansion
- Future "mini-editions" (such as Orbs, Dice, and Riftwatchers) pending DAO approval
- Skins & Cosmetics
I personally see the use for those except for the "Future mini-editions." Others will find this more useful, especially land owners or those competing in guild competitions. For casual players like me, I'm just hoping that these packs won't require too much time before release.
Second concern, the Price
This doesn't mean the price of the DEC-B Tokens. We already discussed about that. But rather the price of the projects. For example, if I buy 1000 DEC-B and the mini-packs require 4000 DEC-B, then unless the team have an option that I can use 1000 DEC-B and 3000 DEC or something, I wouldn't be able to use DEC-B.
Based on the article, the 1:0.8 ratio will be live at the end of January for 60 days. This would be until end of March 2023. Based on my understanding, you can still buy DEC-B after that but in a 1:1 ratio or 1 DEC per 1 DEC-B. This probably would occur for some time since they're planning to use the DEC in Future projects like the application of Voucher Tokens.
My Other Thoughts
I think this will benefit the community and the devs now, which is the most needed help. Bitcoin is still going down and everyone doesn't have if it would ever recover. I heard Splinterlands devs talked that they have enough funds to cover around a year and a half running the game but, again, we don't know if Bitcoin would recover after a year and a half. And that's the reason for the DEC-B Project.
I have great hopes in this DEC-B project and I hope they make it worthwhile for the investors that would buy the DEC-B Tokens.
They also talked about Land Survey Potions which I'm not going to talk about here because I am not a Splinterlands owner and I'm not sure if I would buy it. I'm enjoying the card game as it is and maybe I'll talk about it in the future but not now.
I think I also need to point reiterate that DEC-B will be a token, yes, but non-transferable. That means it's not going to be "another DEC" as I've seen a lot on the comments. The DEC-B, once used, are burned, pretty much like CREDITS. This means there would be less DEC in the market in the future.
Again, you cannot buy DEC-B on third market. This will only be available on that 60 day period and will be soulbound on your account. Hence, this would not "create a new economy" like the VOUCHER token. I probably can summarize it as like this:
BUY DEC-B using DEC - DEC-B used for future projects - used DEC-B gets burned
TLDR: The initial DEC used to buy the DEC-B gets burned once you use the DEC-B.
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