We eliminated a major demand source (speculation) and expect the playerbase to do something they haven´t been able to do in way better market conditions before. That is economical madness
I think you are using "BOTS!! SPECULATORS!!" to create a knee-jerk emotional response from a community that mostly has Bot-related PTSD. But calling it economic madness doesn't make it so.
RE: GUARANTEED OFFRAMP
Economically, DEC Speculation is not a demand source on a net basis - the only reason speculators are holding IS TO SELL AGAIN. Bulldog's proposal doesn't change that demand source at all. DEC is already held by speculators, many of which are only holding DEC because of the efforts to re-PEG.
There are also already PLENTY of market bots and they are already active in DEC. It's not like they can sell more DEC than they buy, in the long run. So who cares if those bots start buying more, when it's farther below peg - even if they sell near peg? ...All that does is create a stabilizing effect under the Peg and dampen volatility - which is something what you would want from any "so-called stable coin".
In my opinion, if there is some natural resistance at 99.99% of PEG, before we get to the SPS burning stage, that is beneficial: I expect the first time we exceed PEG, this community will be really excited and probably burn way too much SPS too quickly... so a bit of resistance at 99.99% is healthy to make sure demand for DEC is really there before we light the torches.
As long as the community keeps burning DEC, or storing for long term (for gameplay, guilds, etc), there will continue to be net buying pressure over time - and will most likely correlate with promos and events.
RE: OVERALL INFLATION
You are arguing against yourself here?
- First you say that we won't be able to hold DEC at peg
- Then say all the SPS inflation becomes DEC inflation.
These can't both be true - SPS won't be meaningfully burned for DEC if it's below Peg, so SPS inflation will mostly just stay as SPS inflation until the fundamental DEC demand creates a situation where the SPS is worth burning.
While I agree with your point about the high rate of SPS distribution; hopefully the team continues to add utility to SPS and other uses for DEC. The SPS league requirements and DEC on Land are a start, but we will need more. Whether there is enough to deal with overall SPS inflation remains to be seen.