I’ve played over 20 battles in Rebellion now and I haven’t won one, hmmn, either my cards are super weak or my skills are. My cards have always been weak but I was still able to do some damage with them during Chaos Legion days, this time, Rebellion really does seem different, like you have to be strong in skill and deck, argh, strong deck involves some amount of investment, I’m talking about close to $1k and I don’t have that, which means I might just stay in the investor lane for now which I also enjoy. So let’s talk about the economics of the game since Rebellion.
Just months ago, we delved into the intricacies of Splinterlands' economy, particularly focusing on strategies to stabilize $DEC and balance rewards without diluting holder assets. Back then, the community was abuzz with initiatives like halting $DEC rewards and exploring the "great burning" and $SPS delegation markets.
Rebellion brought more than just gameplay changes, these efforts aimed to sustainably grow the game's economy while attracting new players and Rebellion was that needed spark.
Then we also had the $SPS burn to create $DEC mechanism, many must have been hearing about the flywheel, it’s basically to describe when the price of DEC hits the peg, if more demand makes the price go over the peg, then the extra value goes to SPS, also, $SPS is burnt to create $DEC and supply keeps reducing while demand increases, this makes the price of SPS go up, with other things being equal as seen in the chart below. Rebellion really did come with some magic.
The Current Scenario
Fast forward to today, and we're witnessing these strategies bear fruit. The price of $SPS has risen from $0.018 to $0.0365, indicating a positive shift in the game's economic health. This increase is not just a number – it's a testament to the careful planning and strategic adaptations made by the Splinterlands community.
The Land Utilization Impact
With land utilization expected to hit 25% as projected by Aggroed, I don’t have the numbers now but the dynamics between $DEC and $SPS continue to evolve. The integration of land into the game is reshaping the value and utility of these tokens. If we look back at our previous calculations regarding the burning of SPS to generate the required $DEC for land activation, the change in SPS price adds a new layer to this economic puzzle.
Rethinking the Math
With a higher $SPS price, the APRs for liquidity pools become more attractive, potentially leading to an increased investment in $DEC for land activation. This could mean a higher rate of SPS burning than initially anticipated. It's a delicate balance, ensuring the long-term sustainability of the game's economy while keeping the gameplay engaging and rewarding.
The Bigger Picture
What's more intriguing is the consideration of the total supply cap of SPS, set at 400 million. If a significant portion is earmarked for burning and SoulKeep rewards, the game's economy could be on the cusp of a significant transformation.
A Thriving Ecosystem
Today, as we see the price of SPS rising, it's clear that Splinterlands is more than just a game,it's a thriving economic ecosystem. Its ability to adapt, grow, and balance complex economic factors is a testament to the strength of its community and the foresight of its developers. So what do smart investors do at this point? Ape into $SPS Ofcourse, like I’ve always said, high SPS means battles are more rewarding, which means more players play which means more buy and burn and combine cards to grow because growing is rewarding which means card prices go up, and when card prices go up, everything goes up.
I remember when I used to write about “eyes on $Dec”, the price of DEC was about $0.00072 at the time, today, the Dec is back at its peg, giving investors almost 30x profits. Now that the DEC is at peg, all eyes are now on SPS. Let’s freaking get it!
Seasons greetings folks…