Returning to the Battle Arena
Splinterlands is more than just a game to me—it's an adventure that I can pick up or set down at any time. If life pulls me away for six months or a year, I know I can return to the game and pick up right where I left off, whether I'm busy kicking ass or my ass is being kicked, every day presents a new challenge.
After several hiatuses due to infestation of bot farms and minimal rewards, I've been pleasantly surprised by the changes implemented by the Splinterlands team. BOTs are now relegated to the Wild Format, leaving the Modern Format as a playground for human players only. This has not only increased human participation, but also the rewards from ranked battles.
The Human Element
If you believe that the Modern format has become easy because you're only playing against humans, think again. The competition is fierce, and any defeat simply means that my opponent was better that day, this gives me joy. Nonetheless, I'm excited to be back in the thick of the battles, earning $SPS rewards and getting acquainted with the game's new metrics and dashboard, so many new buttons 😲.
Alongside these battles, the economy of Splinterlands has been an intriguing aspect of my journey. The game's economy is based on Dark Energy Crystals (DEC) and Splinterlands Governance Tokens (SPS), which are both dynamic and fascinating. It’s no news that the economy has needed some sort of balancing over the years now.
The Evolving Economy
The entire community has been hard at work brainstorming how to get the $DEC to peg at 1000:$1 and also balance out rewards in ways that won’t dilute holders assets while also incentivizing new players. From halting $DEC rewards to the “great burning” and $SPS delegation markets, there’s been a ton of improvements to achieve this economic goal.
With an estimated 2-3 billion $DEC available for purchase and land utilization in the game possibly hitting 25% at launch according to Aggroed, the dynamics of $DEC and $SPS are continually evolving. For example, if each of the 50 new resources associated with these lands holds a value of $100,000, we would need to "burn," or remove, 120 million $SPS to create the required $DEC.
This calculation is based on an assumed rate of $50,000 DEC per liquidity pool (LP), with 2.5 billion $DEC invested in land activation. However, these figures are sensitive to the price of SPS. Should the $SPS price spike, the math would need recalculating. A higher SPS price means higher LP APRs, leading to increased $DEC investment and consequently, a higher number of burned SPS.
Eyes on $SPS
But here’s where the scenario gets even more interesting: the total supply of SPS is theoretically capped at 400 million. If we need to burn as much as 100 million of this total, what happens to the game's economy? Furthermore, we must consider that an additional 100-200 million SPS might be needed for SoulKeep rewards, an essential aspect of the game.
These complexities are part of what makes Splinterlands such a fascinating game for both players and investors alike. If burning 10 million SPS can potentially double the SPS price, as @AfterSoundMusic speculates, what might the effect be of burning 100 million SPS? Such a move could dramatically transform the game's appeal to DeFi investors, making it an exciting prospect for those looking to invest in the growing world of blockchain gaming.
In the spirit of throwback, I can’t help but reminisce about the last bull run when the price of 1 SpS was $0.7, most of which were gotten from airdrop, dang those days felt good, a good day playing for a couple of hours could earn $10 for someone at gold league. I can’t help but wonder if we’ll ever see those days again. I’m cheering those that held on through the bear market up until now, they are the real Diamond hands. Are we ever going to see such numbers again?
Posted Using LeoFinance Alpha
GO get’em! @mistakili
thanks for the encouragement mrlemon
Thanks for sharing! - @alokkumar121
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