Data on the Splinterlands DEC Token | Supply, Burns, Staked and Top Accounts | Dec 2023

in Splinterlands3 months ago

The DEC tokens have been going through a maturity phase in Splinterlands. It was the first token that the game introduced, effectively incorporating the play to earn system back in 2019. The initial design was to provide an in-game token with a semi stable value and use it for trade and price in the game.

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DEC was introduced in 2019 and it was a reward token that gamers received when playing and winning games. At the beginning the focus was on providing support for the token on the downside, because usually in game reward tokens tend to be sold from gamers. To achieve this Splinterlands uses a so called “product backed currency” where packs and otter assets are sold in fixed DEC price.

Later, in 2021, the SPS token was introduced, that made the price of DEC surge on the upside. There were no mechanics in place to limit the DEC price on the upside and DEC reached 10x the value it was designed to. Or its better to say that there were some mechanics in place (printing more when the price is higher), but this was not effective enough to peg the price on the upside. This was back in 2021.

Since then, more tweaks to the DEC tokenomics were introduced. DEC is now not a reward token in the game. It can be created at a fixed price when burning SPS for DEC. This gives it a lot more effective limit on the upper side. On the down side, more products and use cases are introduced where DEC is used or burned. The most recent has been the Land 1.5 expansion that requires staked DEC in order for the land to produce. This introduced a lot of demand for the token.


We will be looking at:

  • Daily and monthly DEC created/burned
  • DEC created VS burnt
  • DEC supply
  • Staked DEC
  • Top accounts staking DEC
  • DEC price

DEC Created VS Burnt

Here is the chart for the daily amount of DEC created and burned starting from October 2020.

image001.png

A lot of volatility for the DEC token emissions.

At first, back in 2020 and 2021, the daily emission was low to around 1M and bellow. But then in August 2021, things changed, as the SPS token was introduced and an overall bull market for the Splinterlands assets begun. This triggered more DEC to be printed and for some time there was more than 10M DEC printed daily, that was x10 or even x20 from the previous emissions. These numbers dropped going in 2022, but still in the first half of 2022 there was a significant amount of DEC printed daily, somewhere in the region of 3M to 5M.

Then in August 2022, the game made a switch for the reward token, from DEC to SPS. Further emissions cuts were made in the following months, making the printing of new DEC tokens limited. Since then up to recently DEC was mostly deflationary with more DEC burned daily than printed.
The major way to create the DEC token now is with SPS burns. As the demand for the DEC token grows in game, we can see more SPS being burned for DEC.

From the chart above we can differentiate three phases for the DEC token. In the first phase from the creation back in 2019, up to august 2021, the amount of tokens issued and burned is relatively small. This is a period for maturing of the token. The second phase started in August 2021 and went on to August 2022. In this period a lot of DEC tokens were issued because of the bull market and the way the DEC tokenomics were designed. This is the expansionary phase. In the last period August 2022 to November 2023, the DEC token was in a contraction phase, where its excess supply is being removed. In the last days we have seems to entered a new expansion phase for DEC.

Monthly DEC Created VS Burned

For a better representation here is the monthly chart for DEC created VS burned.

image015.png

Here as well we can notice that in the last period more DEC is being burnt than created. After the expansion back in 2021, in the second half of 2022 and in 2023, the DEC supply is going down. A large amount of the token was burnt in April 2023. This usually happens when there are some promotional events for the token and users take advantage of it.
We can notice that for a first time after July 2022 we now have a month with positive bar for DEC created in November 2023. This is due to the very last days of November due to the launch of land on November 28th.

DEC Supply

Here is the chart for the DEC supply.

image003.png

This chart probably shows the DEC supply in the best way.
We can notice the sharp drop in the DEC supply back in April 2023 when more than 1B was burned. Another drop in June with around 0.5B DEC burned, and an increase in the last days.
The DEC supply was highest in August 2022, when there were around 7.2B tokens in circulation. Now there are around 5B tokens in circulation. Going forward there should be even more use cases for DEC, more pressure on the price and hopefully more SPS burning.

When we plot this as a yearly inflation, this is the approximate data for the last three years.

YearDEC Inflation
202129%
20225%
2023-19%

Note that 2023 is not over yet. We can see that 2021 was the most inflationary for DEC, then a relatively small inflation in 2022 of 5%, and 2023 is still negative -19% inflation even with the recent new DEC created. In the beginning of 2023 there was around 6.2B DEC in circulation while now we are at 5B including the staked DEC. Will see how much of this can be created in the last month of the year.

Staking DEC on Land

Staking DEC on land is relatively new, since November 28th . There are only seven days with this option. Here is the chart.

image005.png

As we can see the first day was massive with more than 450M DEC staked in that day. The next day there was 250M staked and since then there have been around 80M staked daily in the next days. A cumulative 1B DEC staked atm.

Top Accounts Staking DEC

Here are the top accounts that staked DEC.

image019.png

The top account @vugtis has more than 150M DEC staked. On the second spot is @cryptromance with 36M.

Price

So, after all of this burning and use cases for DEC how is the price doing. Here is the chart.

image021.png

As mentioned previously, in the past DEC had inefficient mechanics to limit its price on the upside and because of this at the beginning of 2022 the token was trading above its peg of 0.001 USD. Then the SPS to DEC conversions were introduced and this is a lot more efficient design. On top of this, the overall market took a major downtrend in 2022, so the upper side of the token was no longer a problem. DEC broke its peg on the downside, trading at 0.0006 for a period of time, or at 40% discount, for a short period of time.
In the last year, we can clearly notice a trend for the DEC price slowly climbing to its peg. DEC is now trading at the peg. With the new use cases for DEC land, the demand has increased and surpassed the current circulating supply od DEC and now SPS is being burnt to create more DEC supply.

Disclaimer: All the data above is taken from Hive Engine and adjusted. There can sometimes be lags between the Hive Engine data and the in game data that represents the latest numbers.

All the best
@dalz

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lol those good old days of DEC at 1 cent and rental income being $50+ I'm hoping we can see some type of return to that in this bull market. It does seem like we stabilized somewhat just in time for the next bull run which is going to be critical for the SPS price and the overall economy. These next few months are going to be interesting to say the least.

The truth is that DEC has done what was expected of him in recent times. Let's see if he is able to maintain the level next year.

I have not played this game because still I can't manage time with my busy tough routine and can't spend time on this platform.

Super overview Dalz! Great to see the Splinterlands tokenomics in action. SPS also taking off at the moment!

Thanks!

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I may just play this game one of these days to have an idea
I’ve never played it before

Thank you so much for the well detailed data

I am sure, splinterland teams have so much to offer in the coming months/years. Thanks for the analysis @dalz

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