Splinterlands continues its run, ranking as the number one app in all crypto in the last weeks, according to dappradar.
The Splinterlands DEC token has been a challenge to track. There are quite a lot of mechanics, reward pools and even more ways to burn the token.
Just to mention a few ways DEC is being created:
- reward pool for wining battles
- reward pool for quests
- reward pool for liquidity providers
- DEC created from burning cards
On the burn side, DEC is usually burnt for some of the in-game purchase like the dice edition of cards, guilds upgrades, skins etc. Not sure is there some DEC burning for the land.
Plus, DEC lives on multiple chains, Hive, Ethereum, BSC, plus the in game DEC hold by players.
The price of the DEC is loosely pegged for the 1000 DEC per 1$, but we are seeing now that it has lost its peg on the up side, going as high as x10 of its peg.
Method. For the data presented here I have been using the issued and burnt DEC on Hive Engine, and additionally double check it with the api data in the last few weeks. The queries are on the bottom of the post.
We will be looking at:
- Daily and monthly DEC created
- Daily and monthly DEC burned
- DEC created VS burnt
- DEC created from different pools
- DEC supply
We will be looking at the data only for 2021, from January to October 4th.
DEC Created
First for the amount of DEC created. Here is the chart for the daily data.
Well, this is interesting. The daily amount of DEC created has went up significantly in the second half of August 2021. This is because of the increase of the DEC price but even more because of the sellout of the DICE packs mini edition.
The DEC token increased in value even earlier, but because of the buying of the DICE, where all DEC is burned, the increased inflation was countered until the edition was sold out. Since then, the inflation is quite high compared to before.
The get a better representation here is the monthly chart.
Until July, the monthly inflation was around 27M, and in August there were 370M new DEC tokens added, while in September a 316M.
DEC Burned
DEC is not like the standard crypto tokens. A lot of it is getting burned for in game assets purchases and it is something that need to be taken into consideration. Here is the daily data.
We can see the up trend in July and August, and then almost no burns. This shows that most of the burns happen mainly because of the DICE packs buying’s. After they were sold out there are almost no burns.
Here is the monthly chart.
June, July and August are between 80M to 90M burned in the month and September is down to 1.6M.
There should be a new mini edition, probably at the end of October, or later, that will start burning more DEC.
DEC Created VS Burned
When we put the numbers for created and burnt, we got this.
We can see the DEC expansion in the last two months here as well.
The log chart for created vs burnt looks like this.
The yellow line is burnt, and the blue DEC created.
DEC Supply
Here is the chart for the DEC supply in 2021.
This chart probably shows the DEC supply in the best way.
We can see that over 2021, until June the DEC supply was slowly going up in a steady way. Then in June it started decreasing, because of the increased popularity of the game and more DICE buying. After the DICE packs were sold out, combined with the high DEC price, the supply of the DEC token started expanding at a rapid rate.
At the start of 2021, the supply of DEC was around 600M, and now it is around 1.2B basically doubling. In the last two months more than 300M DEC was added, and October will probably end up in a similar manner. Will see how things go after this, and after the introduction of a new packs mini edition that is specialized in burning DEC.
At the end a note that holding DEC gives users a SPS airdrop, so the price of DEC is a function from the SPS price, and the DEC supply. The DEC supply has doubled in the last two months, but the overall growth of the game has accumulated this with no issues and the tooken is still trading at x10 from its peg.
All the best
@dalz
Posted Using LeoFinance Beta
I have a feeling everyones stacking the DEC for the SPS airdrop. When it comes down to the last 60 days of the SPS air drop I'm kind of expecting a very heavy sell off of DEC as it floods the markets. It might hold some value if the new DICE packs are released by then but for the most part I don't see DEC having much value at the moment besides potions and SPS drop.
Posted Using LeoFinance Beta
This is pretty much my take on the direction of DEC too.
I thought the DEC price would have pulled back a little even by now, but nope.
Heck, the DEC:BUSD LP on Cub Finance is down to paying like 3% but still people are happy to hold their DEC because of the SPS airdrop.
Going forward, hopefully the team adds packs that can only be bought using DEC before this demand completely dries up.
Posted Using LeoFinance Beta
I'm curious if we will be able to buy packs with DEC and if so what value it holds if it remains at $0.001 or will they start pulling the live value of the token. Will make it interesting for Chaos packs and that's only 13 days away!
They mentioned in an AMA that moving forward DEC will be used to pay for things in game at market value, not at peg.
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Yes it looks so ... although they can find a way and try to balance it out ... but nothing is guarantied .... overall SPS is the big boy now, and once it starts paying out for battle rewards, dec will secondary
You're waiting for 60 days prior?
Risky!
nah I'll most likely reconfigure here at the half way mark or sooner. Most likely as Chaos packs start going public seems like when things would start to tapper down
Since DICE packs ran out, there are currently no sinks for DEC as far as I know, where DEC gets burned. I think the new Chaos Legion packs should burn DEC to keep the DEC inflation under control. Will be interesting to see what role DEC will play after the SPS airdrop ends. The focus shifted to SPS.
I think DEC spent on potions gets burned, but i'm not 100 per cent sure on that.
that's possible but who buys potions?
well might make sense for the chaos packs
I used to buy Quest potions but with the rise in DEC the ROI just isn't worth it.
Building upgrades for guilds are sinks for DEC, but I believe people may have taken a break from upgrading because DEC is too valuable for the Chaos Legion presale.
If these prices hold yp (or improve) during Chaos Legion, it will be a great for many of us HODLing for DEC. I'm going to try and see if I can buy 500 Packs from Presale.
!PIZZA
Posted Using LeoFinance Beta
I sold my DEC to power up Hive. The economics of DEC is not clear. I have a feeling that it may go up, but it is just a feeling, it has no background explanation because I can't make sense of the DEC economy.
It is going up because of SPS airdrop APR seems to be like 200% for just holding DEC. That's a high yield... till then just enjoy the gains.
Great documentation of the DEC inflation, with nice graphs! You've been upvoted by <@801190591026954251>.
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Thanks!
Really good insights. Like many others said here, I believe the price increase in DEC is also due to the airdrop points. DEC has no other utility than to purchase assets in the in-game economy. With this brutal increase in supply these lasts months it would have been "common sense" for DEC price to decrease. This implies that people are accumulating DEC for other purposes, and the only other option is for the points.
Seeing Splinterlands reach 1M users today the tokenomics are going crazy until they will get back to normal. But with the growth also the complexity is higher so the formulas to balance everything will be hard to put in place. Until that happens we only can ride the rollercoaster and enjoy tremendous prices!
Posted Using LeoFinance Beta
I was registering splinterlands games,but the site is not registering.
I need to be earning this SPS token. Because the token is doing well.
Posted Using LeoFinance Beta
I am finding the Splinterlands learning curve steep. I finally figured out how to actually win some games. Sadly, that took some doing. However, the value of the DEC seems low in terms of making money from playing the game. However, maybe as a person becomes a better player, earnings go up? Or can you just earn by improving and selling cards? I need to do a lot more research. Now that I have figured out the game basics, I realize I don't understand the economics. Thank you for your post. It clears a few things up. Also, it highlights the potential opportunity as this game's popularity continues to soar.
yes you earn more DEC in higher leagues. Currently it is actually not too bad. You get about 1$ for 100 DEC (which changes very quickly) on hive-engine. The biggest way of earning currently is to keep DEC for the SPS airdrop or be lucky and get good cards ;)
Earnings ramp up near to exponentially as you move up the ranks, from bronze to silver to gold, etc. As an example, I was making between the teens and twenties in DEC (if memory serves) per battle in the silver league, which amounts to between 10 and 20 cents at the current DEC rate, and I'm now making between 40 and 60 DEC just one league above that, at gold, putting each win around half of a dollar.
I haven't been to diamond since the new change to the reward system, but I'd imagine the next step up is equally as impactful on the payout, if not higher, and this is without even considering the better daily reward chests, which quickly ramp up from only a few chests per day to ten and well beyond, and the far more attractive "season end" reward chests, that number in the hundreds at the Champion league.
Add in the possibility, and I'd argue likelihood, that DEC/ SPS go up in value over time, at least in the short to intermediate term future, and you have yourself a recipe for a rising number of users and even stronger competition for the rewards over time, which seems to be what is happening if you look at the current growth of new sign-ups, starter-pack purchases, etc. More people/ competition should, at least in theory, drive up the value of the Splinterland's economy (DEC and SPS).
Of course, even at the present, it requires quite a bit of strategical skill, if not a very expensive deck of cards, likely both, to be able to grind out earnings in those top tier leagues (Diamond and Champion, specifically), which may be a turn off for some, perhaps even most, people, but certainly a strong motivator to improve one's skill/ deck for others.
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I see that it is relatively acceptable and there is still a balance
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Thanks for putting me onto the DEC print rate a month or so ago, it's amazing how many people don't know about it!
More amazing is how the price is holding up despite the print rate increasing.
Or maybe it's not amazing, I guess it's like increasing wages in a way?
Thanks for this detailed look at DEC economics! I didn't know that it was created at such a high rate because of its 1000 to 1 USD peg... fascinating.
Thanks for sharing, i did not know dec can this far.
Totally agree and in fact DEC tokens started to rise right after the announcement that 1 dec = 1 airdrop point.
Your posts are really helpful and informative. Thanks
!BEER
!PIZZA
Hey mate,
Just wondering about some numbers around SPS (might be a decent post)
I think you get the idea and will probably find some other interesting numbers for people playing the CL presale game :)