A lot is going on in Splinterlands currently, and the new staked SPS requirements are a really hot topic at the moment!
You have probably all seen this table, which might have discouraged you by a ton...
But what if I told you that you are reading it all wrong and that this update actually isn't bad at all?
Lets take a deep dive!
Firstly, @Yabapmatt.sps sent the following formula into the maverick-house:
Now, let's break down the formula to understand what's going on!
This formula takes into account two variables: "staked_sps" and "rating_constant."
The "staked_sps" represents the amount of SPS tokens a player has staked in the system. The more SPS tokens a player stakes, the higher their potential rewards can be.
The "rating_constant" is calculated using the player's rating. The rating is subtracted by 100, multiplied by 0.007, and then raised to the power of 3.5. This results in a rating constant that influences the reward calculation.
The formula for "rshares_modifier" combines these variables. It divides staked_sps by the sum of staked_sps and rating_constant, then multiplies it by 1.33. The result is compared with a minimum value of 0.1. This ensures that even players with low staked_sps and rating_constants can receive a minimum percentage of rewards.
All this might not be easy to understand without some visualization, which we can thank @Vugtis for!
The scaling system introduced by the formula allows players to go beyond the "cap" and receive rewards higher than what they would get under the current system while also allowing players under the '100% - cap' to earn a proportion of what their potential earnings might be. This approach provides significant upside and utility to SPS tokens by incentivizing players to stake SPS for more than just APR% on their staked SPS and Vouchers.
This also brings a key Splinterlands term into play. The famous "Push and shove, there won't be enough for everyone" comment by @Aggroed.
Alternatively, if there was a fixed cap on rewards, players might have been content with reaching that cap and selling any excess tokens. However, the new system encourages players to make a choice between higher percentage rewards or utilizing their SPS tokens in other ways, such as providing liquidity or participating in other activities.
This scaling formula not only benefits players by giving them the opportunity to earn higher rewards but also benefits the overall economy of Splinterlands. It adds more utility and value to SPS tokens, incentivizing players to acquire and stake more tokens, which can lead to increased engagement and participation in the platform.
In conclusion:
The newly planned SPS utility with the scaling formula is a smart and beneficial approach, in my opinion. It offers players the flexibility to earn rewards beyond the current cap based on their staked SPS tokens. This not only enhances the economic standpoint by increasing the utility of SPS tokens but also provides players with more options and incentives to actively participate in Splinterlands.
Bring your thoughts to the comments!
- Xensational