I know I am not the only one seeing the free fall in DEC prices. Even as Hive has stabilize the value of DEC is going down. This in turn has made a lot of Splinterlands assets a lot more affordable for new comers. Meanwhile existing players are seeing our assets' values decay almost on a daily basis.
The challenge is how can we hold up DEC value so that existing holders and long term investors can maintain assets value? That is the million dollar question.
Trend of DEC is even falling as SPS has held its price. This is proof that without capping DEC supply the overall value of DEC will likely continue to inflate making overall ecosystem assets lose value.
It maybe as easy as capping DEC supply. How can this be. I think the developers have already been doing that with introduction of tokens like Glint. As more assets are printed there will have to be alternatives to creating new tokens. The more tokens approach does not seem to be helping in the long term.
DEC was suppose to peg in a ratio to the USD. It has fail to hold and continue to be stressed by the day. It maybe time to limit burning assets for more DEC by capping how much can be burned. It may be a temporary solution to limit DEC sell off but in the long run we need a way to maintain DEC prices or the whole ecosystem will continue to devalue.
Thanks for reading this post!
I was proposing to the Splinterlands team to replace DEC with HBD at some point. For me I saw that as a way to use a proven stablecoin, but not sure why they didn't go this way...
A very costly mistake as it is dragging down all Splinterlands asset prices. Having it backed by HBD would rely on the Hive ecosystem, but then again Splinterlands runs on it so I don't see it being as much of a problem as it may seem. I agree with you that they should have leaned more toward HBD.
The DEC peg doesn't seem to be able to hold, and I have seen quite a few people talk about how DEC has failed. It makes me wonder if it will ever get back to peg.
It has not pegged in months if not years. Painful to see it continue to slide down.