Good morning Splinterfriends!
Today I am going to write a simple and short post... but I think it could have a pretty significant impact on our ecosystem... if I'm not the only one doing it...
Today's post is short and sweet... like Shakira 😉
There is an underlying concept to Splinterlands that I have come to realize... is irrelevant... The #Flywheel.
What's the Flywheel, you may ask?
It goes something like this...
"Once DEC is at PEG... you can Burn SPS an... oh ok... lets define that...
Burn = Permanently Destroy and Remove from the Ecosystem.
Let me try again... I was distracted...
"Once DEC is at PEG... you can Burn SPS and receive DEC... this will reduce the SPS Supply (Finite) and make SPS more Valuable... by doing this players will want to keep their remaining SPS but this ALSO makes it more valuable and so the price of SPS stays high(er)..."
Or something like that...
So that's what is supposed to happen... but it only happens when there is a demand for DEC... and since DEC is created but not often DESTROYED... we don't see a reduction in DEC supply so what we get is:
SPS Burned... DEC Created.
DEC Created > Need for DEC... Flywheel stops.
Ok well... basic Econ 101 here...
If Demand = Constant and Supply = Down... Price = Up.
My plan from now on...
Play Tournaments. Take winnings... 75% of SPS saved for Set in December... 25%... BURNED. Doesn't matter the exchange rate.
If we have 3,000,000,000 SPS Tokens... and they're worth $.01... it would stand to reason that since the money won't abruptly leave the system, especially if the price is going up...
If we had 1,500,000,000 SPS Tokens in existence... then the price would be $.015 or roughly a 50% increase.
So what does this mean and what am going to do?:?
Like Saruman... We shall stoke the fires of industry and fill the furnaces with SPS!!
From now on, I will take all the SPS I earn from Tournament Rewards... and I will BURN 25% of it!!!
Regardless of how terrible the conversion rate is!!!!!!
By myself, that will mean very little SPS is going to be burnt... I mean... even if I won 1,000 SPS every day... I would only be burning 250 SPS...
Which means I hope some of YOU GUYS will join me!! With people like me... and you?? Projects like Elmo Burns... We can and should chip away at the Total Supply of SPS...
Is it the most efficient way to earn DEC? Nope. Far from it...
But you know what it will do? Steadily chip away at the 3,000,000,000 Tokens... especially with all of the other methods too...
Eventually what I think will happen is people will realize SPS emissions are running out... and supply is steadily dwindling... OH NO I SHOULD BUY SOME!
There's your Flywheel - but it won't be due to some random occurrence... it would be the slow steady depletion of the SPS Token by burning a portion of my Rewards and perhaps y'alls too!
So there ya have it... FLYWHEEL SCHMYWHEEL!! BURN IT NOW!!
That's all I have for you today folks!! Thank you for reading and I would LOVE for you to join me in game!!
Naturally, after everything leading up to this moment, I believe Splinterlands is one of the BEST web3 games out there!
It brings the #play2earn feature to the forefront of development as well as many opportunities for people to earn rewards - whether Player or Investor!!
If you're interested in the future of gaming, it's worth checking out!
You can sign up here: Splinterlands
Cheers 🍻,
- CaptainDingus
#Splinterlands #Hive #ConclaveArcana #Presale #SPS #DEC #play2earn #web3 #NFTGaming #Rebellion #Conflicts #SurvivalMode #RentalMarket #CardRentals