This post is a continuation of the Burning DEC series where we look a closer look what is the rate of burning the in game Splinterlands currency DEC.
How is DEC burned?
Here are some of the ways for burning DEC:
- Buying Potions
- Buying Orbs
- Buying Skins
- Guilds Upgrade
Other than this DEC has a lot of use case as buying individual cards, buying packs and the tournaments are paid in DEC. This use cases don’t burn DEC, but they provide incentive to hold some.
Before HF21/22 DEC was used for vote buying as well.
Untamed Era
The Splinterlands game have entered the UNTAMED era. The new Splinterlands packs, were realized on November 30th. After a crowdfunding campaign on Kickstarter and Fundition players were finally able to open their packs, just after the season ending. In the last month there was a spike in the DEC burnt at the end of the month since a lot of the players were using potion to open the packs.
The DEC token is non stackable token so to speak and it’s all liquid. Providing liquidity is one of its main functions in the game. This means that it requires a lot of use cases and burns for it to maintain its value. Burning tokens or creating sinks is essential.
The DEC token was launched starting from 05/20/2019. An overview will be made on the tokens burned starting from that day until today. All transaction to the @null account will be presented on a daily basis.
All time DEC Burned
Here is the chart for the all time DEC burned vs created.
We can notice a sharp increase at the end of November 2019, and few days after in December, but afterwards the trend is going down.
Notes:The vertical Y axis is on a logarithmic scale for better readability. There are few days with more than 10M burned and those are cut from the chart.
The DEC Created line is the daily reward pool according to the anouncment from @steemmonsters a 1 million per day and going down 1% each 30 days. It doesn’t include the DEC created from burning cards.
The DEC Burned line is the DEC sent to the @null account. All the transaction to @null are made from the @steemmonsters account and they are executing the burns from all the buys and sinks.
Let’s see then monthly chart.
Daily DEC burned in December 2019
Here is the chart for daily DEC burned in December 2019.
As from the overall chart we can notice that there were some spikes in the DEC burnt. After the Untamed released on November 30th, and the record number od DEC burnt with more than 7M DEC sent to null at that day, there were few more spikes afterwards.
December started with 2M, then a bit more than one, and a spike on December 7th of almost 6M DEC sent to null at that date. After this the amount of DEC burnt slowly decreased with around 200k per day in the last few days of the year.
The table.
| Date | DEC Burnt | DEC Created |
|---|---|---|
| 01.12.2019 | 2,490,315 | 943,000 |
| 02.12.2019 | 1,177,805 | 943,000 |
| 03.12.2019 | 1,228,190 | 943,000 |
| 04.12.2019 | 448,740 | 943,000 |
| 05.12.2019 | 759,476 | 943,000 |
| 06.12.2019 | 376,321 | 943,000 |
| 07.12.2019 | 5,973,846 | 943,000 |
| 08.12.2019 | 645,454 | 943,000 |
| 09.12.2019 | 988,318 | 943,000 |
| 10.12.2019 | 316,530 | 943,000 |
| 11.12.2019 | 171,124 | 943,000 |
| 12.12.2019 | 698,982 | 943,000 |
| 13.12.2019 | 715,310 | 943,000 |
| 14.12.2019 | 499,527 | 943,000 |
| 15.12.2019 | 1,367,555 | 943,000 |
| 16.12.2019 | 144,092 | 933,500 |
| 17.12.2019 | 601,514 | 933,500 |
| 18.12.2019 | 326,990 | 933,500 |
| 19.12.2019 | 184,415 | 933,500 |
| 20.12.2019 | 518,274 | 933,500 |
| 21.12.2019 | 653,929 | 933,500 |
| 22.12.2019 | 373,875 | 933,500 |
| 23.12.2019 | 794,150 | 933,500 |
| 24.12.2019 | 757,844 | 933,500 |
| 25.12.2019 | 525,128 | 933,500 |
| 26.12.2019 | 340,645 | 933,500 |
| 27.12.2019 | 429,845 | 933,500 |
| 28.12.2019 | 296,702 | 933,500 |
| 29.12.2019 | 153,353 | 933,500 |
| 30.12.2019 | 283,905 | 933,500 |
| 31.12.2019 | 188,257 | 933500 |
Monthly burns
Here are the burns summarized by month.
The first months, June and July have a significant amount of DEC burned and I guess those are months of stabilization. Starting from August things are stabilized around the 30M mark with very close numbers of DEC burned vs created. In the last months the DEC created is a bit higher than burnt.
| Month | Burned | Created |
|---|---|---|
| May-19 | 100,000 | 12,000,000 |
| Jun-19 | 89,642,994 | 29,848,000 |
| Jul-19 | 60,712,100 | 30,544,000 |
| Aug-19 | 33,522,372 | 30,240,000 |
| Sep-19 | 27,148,858 | 28,012,000 |
| Oct-19 | 22,242,350 | 29,651,000 |
| Nov-19 | 25,746,043 | 28,575,000 |
| Dec-19 | 24,430,411 | 29,081,000 |
December has around 4.6 million more DEC created than burnt. The inflation is dropping, and the new untamed cards have less DEC in them, so DEC is getting more scarce. Also, once again to note here that DEC created from burning cards is not calculated in the report.
DEC Price
Here is the chart on DEC price in STEEM.
The price seems to hit a resistance and has dropped a bit in the last period. Although DEC is acting as a stable coin, and the option to buy packs for fixed amount of 2000 DEC is also in this direction.
All the best
@dalz
15% of the reward on this post goes to @null.
Looks like people are hoarding DEC since the burn rate is lower over time.
Its moving up and down a lot and is not stable yet.
Lovely Charts and Analysis! An upvote is on the way!
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Thanks @clove71!
Well if ever the burn rate decreases you can simply increase the price of the cards and packs to offset it. I think that's where steem should be going with its promotional services where you set an amount you want to burn say $1 to promote your post which is now 7.7 STEEM now if more people are burning $1 to promote their posts then it becomes an auction for views, same with Facebook and Twitter.
So you'll need to pay more for the same or higher views and interactions. This increases the need to burn more steem regardless of the price of steem because you want a certain value from the platform
Interesting view, and implementation for STEEM.
Basically your are selling this digital good (packs or promotion) for some fixed $ value and in that way provide stability for the token. But this goes for the upper moves as well :) You will cap the price.
That’s why it can’t be the only thing you can purchase, the more products and price variety like in the individual cards and add ones still provide for price discovery!
I mean the packs you buy are 2000 DEC but you’re not gaurenteed that you’ll get 2000 DEC worth of cards it could be duds it could be rares so the pack provides the base the cards themsleves provide the price discovery
Which is why I also say the attention from promotions needs to be an auction so people will go looking for the best bang for buck! Should I promote via esteem or steempeak or on a a tribe site or steemit to get the most votes or views for my purchase/burn of the token
It will be upvoted on by some friends and will be in the next edition of our newsletter. Congratulations on the great work.
Thanks!
Hi, @dalz!
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