Previous Proposal
At the end of October last year, this near exact proposal was already put om and was rejected with 57% of the SPS Stakers voting against it. The reason for it was that most that bought Riftwatcher packs with SPS felt screwed as it basically put packs at a big discount as 5000 DEC which packs would be 2.75$ instead of the 5$ price everyone paid. This on top at a time when SPS was worth a lot more.
Reason For Proposal = "SPS Flywheel"
The way I look at all of it is there is an eternal conflict between the company having to make enough revenue in order to keep up with the rather high costs to run and develop the game while also potentially making good profit and part of the earnings actually going the SPS holders which gives the token value.
DEC was printed out of thin air like crazy during the good times which made things go up more at the time as everyone was earning a lot with the price of this being paid later down the line with DEC going way below peg which means that the revenue for the company tanked. Since most Chaos Legion Packs were sold for DEC since it was way cheaper for players, the team received that (not paying any kind of affiliate earnings) with no real way to capitalize on it.
So the narrative was created to almost fully switch the use case of SPS to it acting as a Flywheel in a way where SPS needs to be burned in order to create DEC which acts as a product-based Stable coin. However, before this can kick into place, a lot of DEC needed to get burned and less of it needed to be created. So there has been a crusade to get things back to peg inventing all kinds of extra costs like the "Starter Packages" on Land and the requirement to also stake SPS on top of each card when Land 1.5 Staking will be released. Right now there is also the Great Burning event and there was the DEC-B mechanic which gave a 20% discount for players that burned DEC now for future use.
All of this got the price of DEC from 0.00055$ to 0.00079$ still quite a bit below the peg with a big supply left that needs to be sold/burned before the Flywheel potentially could get into action.
Influence on SPS Price
While the combination of the Bear market and the fact that SPS Staking Rewards which come from inflation are a major factor, the fact that SPS didn't have much use-case while it's given out as rewards like hot candy really hurt the price a lot. The entire Flywheel Narrative also is far from being kicked into action and one of the few things that actually gives use case to SPS is the fact that 5$ worth of it is needed in order to buy a Riftwatchers Pack.
Why I'm Voting NO
SPS For Ritfwachers acts indirectly as a SPS Price Floor: I really like the original direct use-case for SPS in that a mini-set of cards is created that needs to be paid with in SPS which all gets locked up in the DAO. While the Price in Dollars Remains the same, the price in SPS goes up as the price of SPS goes down and the other way around. With Roughly 2 Million Packs Left, this means that at the current price of 294 SPS, 588 Million SPS is needed in order to sell out which equals over 20% of the entire supply
Give it Enough Time and it will Sell Out: I see the Sale of Riftwacthers cards somewhat similar to cosmetic skins which took a long time but eventually most of them are sold out. There is no rush in getting all the Riftwatchers Packs sold and even if it takes 3-4 years that's fine.
Not Much Changed Since the last Proposal: Personally, I see no real reason to put this up again and don't like this constant revoting on proposal that failed to see them pass afterward with little to no changes.
Less Reasons to Buy SPS: While an argument that can be made is that it's more convenient for new players to buy packs with DEC, fact remains that in the short therm, this passing should push the price of SPS down more as players might Sell SPS to buy DEC with the Flywheel still nowhere near in sight. Lower SPS Price = Lower Earnings = Lower Card Prices = More Players Leaving and less new Players coming in.
Conclusion
For Players it actually is beneficial for DEC price to be below peg while for the company earnings it is bad which is why the entire narrative of the SPS Flywheel usecase was created. While in the long term, this should be ok, in the short term this has done more harm than good and pushing this even further by pricing Riftwacthers Packs in DEC will make it even worse. This is the reason why I will be voting NO on the upcoming Proposal. Riftwatchers right now is one of the only reasons for players to buy SPS while enough already has been done to push DEC closer to peg. I think the team just needs to take the hit in company earnings when they release the Rebellion Expansion which should push DEC back to peg. Right now it feels like the players are taking that hit so the team doesn't have to when the next expansion releases.Play2Earn Games I'm Playing...
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I never wanted a mini set but from the beginning I said if they weren't going to have it, it needed to be a dec burner like it's predecessors. These sets were created to be equalizers for the "DEC out of thin air" problem and when we needed it the most, they made it SPS to the DAO instead. They broke their own system when they did that and we've been suffering for a year because of it.
Matt realizes this and is trying to fix it (it's likely too late) but because people spent SPS on them first, they now doesn't want to see it in DEC because its a discount. Let's be real, most people spent SPS they already had, when it was 7 cents. That means if there were going to hold that SPS anyway, those packs cost them $1.20 in today's SPS.
If you think about it, the only reason we had this year of "DEC back to peg" proposals was because they didn't make RW a dec burner in the first place. Those 1 million packs would have burned through 5 billion DEC. And we probably would have sold more by now because we wouldn't have experienced the economic weight of DEC being half of peg or all the anger from proposals to bring it back to peg and the apathy because it hasn't worked yet.
RW needs to be the last miniset. And it needs to be sold in DEC. And that DEC needs to be burned.
SPS, is not meant to be a transactional currency. It shouldn't be used in the market. It shouldn't be spent as a fee to get into tournaments, and it shouldn't have packs sold in it. The only thing I think should be sold in SPS is node licenses. We need to change the way we look at SPS utility imo
I like the idea of a miniset that is there purely to give value to the DOA and SPS holders. It gives a reason to buy/use SPS and locks it up in the short run with an option for the DOA to use it later down the line if needed. It remains an eternal conflict between Company revenue and player earnings. The entire DEC to Peg narrative the way I see it is mostly there for the company to earn and not having to cut back on the too high expenses.
SPS is the reward currency and there needs to be valid reasons for player to buy it which would be less the case if Riftwatchers was sold in DEC. I agree that we don't need another Mini-Set and the requirement should be Riftwatchers to sell out before a new once can come. Card inflation is just way off the chart. New game modes, better new player experience is where the focus should be on. In the end, more new investors is the only real way to make things recover.
I'm voting no because I'm tired of watching my cards constantly get devalued.
100% Agree, one of the reasons the latest promo card and the Riftwatchers packs aren't selling is because buyers are fed up with the crazy card inflation and the knowledge the prices of cards aren't holding up let alone go up in value. Imo they should focus on new game modes and alternative ways for the company to get revenue instead of the constant printing inflating the supply.
Sorry, but why is it good for players, that the DEC Price is below PEG? Dont understand.
For buying fixed price assets like GP, Potions ok, but for the rest. Buying cards in DEC will cost more or less DEC depending on its price. So higher DEC price would be good.
And I dont understand this Floorprice discussion for SPS and Ruftwatchers either. Noone will buy RW at this SPS price. They will just lie there. At the same time some cards are very costly on the market. Overall it is still not woth to buy packs, even in big charges.
Pricing RW in DEC will give new people the chance to get access to this card set.
Players aren't earning DEC, Cards are priced in dollars (the same goes with Riftwatchers) so it doesn't really make a big difference. It's mainly in the interest of the company for DEC to restore to peg since they otherwise only earn DEC instead of players buying credits with $$$. They need DEC to restore as they hold a lot of it which the consider as company revenue.
The reason nobody wants to buy riftwatchers I would say is mainly because ther card market has been flooded already like crazy and they don't end up keeping their value because of this. it's 5$ a pack and it doesn't make a huge difference for buyers. If prices in DEC that will in the short run tank SPS even more.
New players have equal access to the packs no matter if they are priced in DEC or SPS.
Thanks for sharing! - @lenonmc21
You have some good arguments to vote against this proposal, you write very well, keep up the good content.