🧩 SPS Proposal – Gradual Efficiency Reduction for Rented & Delegated SPS

in Splinterlands2 days ago

Hey everyone 👋
After all the great feedback and debate, here’s the final version of the SPS proposal that I plan to submit for DAO vote.
It includes the community’s best ideas and aims to find a balanced, practical solution that rebalances incentives without hurting accessibility or the market.

🎯 Goal

Gradually reduce the efficiency of rented and delegated SPS in reward calculations —
to encourage staking, reduce sell pressure, and stabilize SPS value over time.

This is a lightweight, transparent, and predictable system designed to improve token health long-term.

⚙️ Why It’s Needed

SPS rentals are now extremely cheap (often 0.001 DEC).

Many players rent instead of owning, generating constant sell pressure.

Rewards are mostly extracted and sold rather than staked or held.

The result: weak price support and less alignment between players and the SPS ecosystem.

We don’t need to kill rentals — just rebalance them gradually so ownership and staking become the natural goal again.

💡 Core Mechanism

1️⃣ Delegation carve-out for new players
→ Delegated SPS keeps 100% efficiency for accounts under 3 months old, ensuring smooth onboarding.

2️⃣ Immediate 20% Decay
→ On implementation, all rented & delegated SPS start at 80% efficiency — a quick but balanced correction.

3️⃣ Unified tapering system
→ After that, both rented & delegated SPS decay together, ensuring fairness and avoiding loopholes.

4️⃣ 1% Weekly Decay
→ A fixed 1% global decay each week — simple, predictable, and fully transparent.

5️⃣ Efficiency Floor at 50%
→ Efficiency stops decaying once it reaches 50%, keeping rentals viable but less competitive than staking.

📈 Expected Outcomes

✅ Lower sell pressure — less efficient farming = fewer SPS sold.
✅ Higher staking incentives — players shift from renting to owning.
✅ Smooth transition — no market shock, gradual and predictable.
✅ Fairness for small holders — new players keep full efficiency early on.
✅ DAO treasury benefit — supports long-term SPS circulation and value.

🛠️ Implementation

The system acts as a global efficiency multiplier on rewards — technically light and automated.
The DAO can later adjust the rate or cap if needed.

That said, the Splinterlands team will still review technical feasibility and dev impact before implementation,
to make sure this system is practical and not overly burdensome to build.

🧭 Conclusion

This approach offers a fair, gradual, and community-driven correction —
avoiding hard cuts or shock measures like rental bans or floor spikes.

With a 20% start decay and 1% weekly taper, players can smoothly transition from renting to staking,
building a stronger, more sustainable SPS economy that rewards long-term commitment.

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I think this one is better. It should be easier to code (unless the exception of 3 months turns out to be more difficult but it probably isn't).

Glad we have come to a more acceptable draft!