Splintershards (SPS) Ranked Battle Rewards & Governance Voting

As we have discussed in previous ranked rewards update posts and on the town halls, the token given out for ranked battle rewards in the game (including both wins and season/focus loot chests) will be changing from DEC to staked SPS. We believe that this change is a crucial step towards the overall goal of rewarding players with increased stake in the platform in proportion to their level of skill, assets, and participation in the core game.

The development work for the update has been completed and it is currently scheduled to be released on Tuesday, 8/23. We do want to note that since this is a relatively large change, if additional testing time is needed then the release may be pushed back to Tuesday, 8/30. Either way, we expect that the change will be live before the end of the current ranked play season.

This post will go into detail about how exactly the SPS rewards are planned to work, including all of the relevant numbers and tables, but before we get into all of that, we also wanted to discuss some of the high-level goals behind this change and how it will affect some other areas of the ecosystem.

DEC Token

Obviously, one of the main areas of the ecosystem that will be affected by this change is the Dark Energy Crystals (DEC) token since it will no longer be paid out for ranked battle rewards or in loot chests.

We have intended since the launch of the token for it to act as a product-backed stablecoin which we believe is a potentially revolutionary and very powerful concept. All stablecoins that we are aware of to date are "backed" by one of three methods:

  1. Offchain assets held by a centralized custodian (USDT, USDC, BUSD)
  2. Other volatile cryptocurrencies (DAI)
  3. Algorithms (UST)

All of the above methods have their downsides, some of which we have seen first-hand very recently with the collapse of UST and the blacklisting of wallets by USDC.

At Splinterlands, we are attempting to implement a fourth method for backing a stablecoin, which can potentially be better than the other three - a stablecoin whose value is backed by actual products. This is one mechanism with which the US dollar has been given value over the past 50 or so years - the fact that oil (one of the most valuable products on earth) is priced in dollars.

So far, in practice, the pricing of Splinterlands booster packs in DEC tokens has worked somewhat well in stabilising the value, however it has always had to compete with the new issuance of DEC tokens through the ranked rewards mechanism. In times when demand for packs is less than the issuance of new DEC (such as right now), the value of the token falls until a new supply-demand equilibrium can be established. This is similar to the US dollar losing value (leading to high CPI inflation) as the amount of new dollars added into the ecosystem over the past couple of years has exceeded their demand.

By replacing the DEC rewards with SPS rewards, the new issuance of DEC will be drastically reduced by roughly 80%, which we expect will completely resolve the issue of demand being lower than the supply and help maintain a more stable price for the token going forward which will allow it to fulfill it's intent as a product-backed stablecoin.

SPS Conversion to DEC

The flip-side of the above issue is, of course, when demand significantly exceeds supply, which we saw happen beginning with the SPS airdrop a little over a year ago. In this situation, many other stablecoin projects have demonstrated the ability to use a second token to absorb any additional demand coming into the stablecoin.

Now that the SPS token is available, we are able to utilize that as the second token to absorb additional demand that may come into the DEC token in the future.

The way this works is that users will be able to at any time burn $1 worth of SPS tokens (based on the current price reported by the various external markets) and mint 975 DEC tokens. This means that any time DEC tokens are trading above $0.001025 on a third-party market, there is an opportunity to purchase and burn SPS tokens to mint DEC and then sell it on the market for a profit. This creates downward pressure on the DEC market price, which helps it remain more stable, and upward pressure on the SPS price.

For those of you wondering why $1 worth of burned SPS only mints 975 DEC rather than 1000 - the reason is to provide a small buffer which helps prevent certain potential price manipulation exploits. The same mechanism is used with the conversion process from HIVE to HBD tokens and has worked well so far there.

SPS Governance Voting

The Splinterlands team is also extremely excited to announce that the first version of the SPS governance proposal system is currently in testing and will be released asap - possibly even as soon as next Tuesday. This will bring to fruition one of the most important utilities of the SPS token - the ability to participate in the governance of the game!

This important new feature goes hand-in-hand with the switch to players earning staked SPS tokens for rewards. Now, as players progress in the game through increased participation, increased assets, and increased skill, they will be directly growing their stake in the platform as well, and they will be able to see that reflected via their vote weight increasing on governance proposals they want to support or vote against.

More specific details of how the first phase of the governance system will work will be released as we get closer to the launch date for that, but we wanted to mention it here since it is a major factor in the thinking behind the switch to SPS rewards as discussed above.

SPS Reward Details

As specified in the SPS whitepaper, there will initially be a pool of 7.5M SPS tokens per month available to allocate towards ranked battle rewards. This pool of tokens will be split into four categories of rewards - Wild Format Battles, Modern Format Battles, Daily Focus Chests, and Season Reward Chests.

The breakdown of how much SPS per season is allocated to each pool is shown below, in addition to the dollar value of those tokens at current market prices and the dollar value of the DEC tokens given out for each of those pools currently for comparison.

Reward PoolAvg. SPS / Season$ / SeasonPrev. $ / Season (DEC)
Wild Format900,000$63,000$9,000
Modern Format900,000$63,000$9,000
Focus Chests975,000$68,250$54,000
Season Chests975,000$68,250$54,000
Total3,750,000$262,500$126,000

As you can see, the total dollar value of the rewards given out through ranked battles will roughly double with the switch to SPS based on current market prices for each token. Please keep in mind that the dollar values of these rewards is only for reference and may change at any time based on market activity.

Modern & Wild Ranked Battle Rewards

Additionally of note is that the majority of the reward increase is going towards the wild and modern battle pools. We feel that the amount of rewards currently being given out for wild and modern ranked battle wins is far too low and this change will help bring that up to more reasonable levels in line with the other reward pools in the game.

The SPS rewards for modern and wild ranked battle wins will work very similarly to how the DEC rewards worked for those battles in the past. The appropriate amount of SPS tokens will be added to both pools with each block that is produced on the Hive blockchain (roughly one block every 3 seconds).

Each time a player wins a ranked battle, the amount of reward shares they earned for that battle will be divided by the total amount of reward shares earned for every battle in that format over the past 24 hours and that will determine what percentage of the total tokens in the reward pool for that battle format the winner will receive.

Focus & Season Chest Rewards

Currently, a specified percentage (based on chest tier) of focus and season reward chests contain DEC token rewards, and going forward that same percentage of chests will instead contain SPS token rewards. Each chest tier (Bronze through Champion) will have its own separate pool of SPS reward tokens for both season and focus chest rewards.

The tables below show the amount of SPS tokens are available for each chest tier and each type of chest reward. The numbers are the same for both focus and season chests but we showed them as separate tables so that it's hopefully clear that there is a separate pool for each type of reward chest.

Focus ChestsSPS / Season$ / SeasonAvg. SPS / Chest
Bronze120,000$8,4000.12
Silver160,000$11,2000.23
Gold195,000$13,6501.54
Diamond230,000$16,1005.97
Champion270,000$18,90017.93
Season ChestsSPS / Season$ / SeasonAvg. SPS / Chest
Bronze120,000$8,4000.12
Silver160,000$11,2000.23
Gold195,000$13,6501.54
Diamond230,000$16,1005.97
Champion270,000$18,90017.93

The "$ / Season" column shows the dollar value of those SPS tokens at current market prices, which is again just for reference as that will change with the market.

The "Avg. SPS / Chest" column shows the average amount of SPS tokens that will be found in each chest that contains SPS for each chest tier. This is based upon recent data about the number of chests earned for daily focuses and season rewards. Since it is a fixed pool of tokens divided up among the chests earned, the average SPS per chest will vary over time as more or less chests are earned overall by players in the system.

This is different than with DEC where the amount of DEC available in chests was not from a fixed pool, and did not fluctuate based on the amount of chests earned overall.

The amount of SPS tokens actually received in each individual chest will be randomly calculated using the same formula as was used previously for DEC token rewards. This calculation mimics the mechanism for determining the type of cards received when opening packs. That means that while the majority of time a relatively small amount of SPS will be in each chest (just like how most of the time cards in packs are common cards), sometimes there will be higher amounts that can range to incredibly high amounts which would be the equivalent of receiving a gold foil legendary card in a pack.

Claiming SPS Rewards

When players earn SPS rewards through ranked battle wins or in loot chests, it will not be immediately credited to their wallet like DEC tokens were in the past. Instead, all SPS earned in these ways will accrue in the player's account and will be available to be claimed into the player's wallet at any time through the SPS management screen on the game website.

Once claimed, these SPS rewards will be directly staked to the player's account. That means they will not be liquid, and will need to be unstaked over a 4 week period in order to be transferred or sold.

We believe this will help push more players towards building and growing their stake in the ecosystem, earning staking rewards, and participating in governance, rather than just "cashing out", which we believe will be very beneficial to the overall ecosystem.


Stay tuned for more updates from the Splinterlands!

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NOTE: All rewards from this post will be burned.

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Better and better!
Interesting mechanics for the DEC. Its sort of combination of product backed, as you say, and algo. On yhe downside it is backed by product, and on the upside by another token SPS. Another option will be to add SPS on the downside as well, but not sure what will be all the implications from that.

Will burning SPS for DEC will be the only mechanics for increasing the DEC supply going forward? Except for the LP rewards.

Burning SPS, LP rewards, and burning cards (which doesn't happen much anymore). That's it as far as I can remember.

Another option will be to add SPS on the downside as well, but not sure what will be all the implications from that.

I don't want another Terra Luna death spiral. The way they have it planned is safer IMO.

Yes we dont want that for sure :)

This is one mechanism with which the US dollar has been given value over the past 50 or so years - the fact that oil (one of the most valuable products on earth) is priced in dollars.

A rare thing to say in crypto sphere, but absolutely true and positive.

As a long term believer of both USD and a veteran in commodity space, from day one I have enjoyed the fact that Splinterlands assets are priced in USD. Something that saved all of us big time!

I welcome the recent changes and project plans. Hope to catch up in Vegas!

Excellent update! I realize many players might not understand how this affects them yet, but as the game continues to grow and SPS becomes more appreciated for what it is, then I think people are going to look back at this day and say WOW!

I am very excited about earning SPS in ranked play and the way the changes were implemented is brilliant! Great job SPL team!


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One concern that I have is that you cannot burn staked SPS or use it to rent cards. For alot of players, especially new ones, they rely on the steady stream of DEC to continue funding rentals. I know the team is aware of this and may have the same concern, we will have to see how new players and bots adjust to this.

Proposal: Allow SPS to be burned from staked with a heavy fee that goes towards the DAO. 900DEC per 1$ SPS with .075$ SPS going to the DAO. This would make it so that players who are just trying to make a quick return and potentially "cash out" would benefit long term SPS holders.

Or just have an option to buy Credits from Staked SPS for new players that have a shortage of DEC and can't afford their rentals. Or add some credits to the odd daily chest like they had for the bronze players before the new rewards system went live. I don't think staked SPS should be converted to DEC as bots can just abuse this and some will probably just send their bot army's to drain the SPS pools.

Always have an SPS unstake going. That will solve all problems... When the unstake happens, keep what you need as liquid SPS and re-stake the rest.

Seems like they should give people liquid SPS and let them stake it if they want instead of making them unstake it and then constantly be waiting a week. What do I know, though? ha.

Accidentally posted this from my alternate account 😅 This is my main!

You can convert your unstaked SPS to DEC. Or you can sell it on the secondary market. In any case, this isn't a problem. One just needs to be prepared for the immediate DEC drought in the next few weeks. Go get more DEC now if you haven't already. Card sales or burns also provide more DEC.

Instead of using DEC for rentals, you can use fresh fiat for renting by converting them to credits

I've been a gamer all my life. I've never seen a game like this before. They constantly evolve and improve things for the betterment of the players rather than milk them and then abandon the development like all other games. We are still at the beginning of this gaming revolution. Splinterlands will be the model for how to build a proper game and community for the next generation of games.

A tough act to follow for sure. The complexity of what they're doing alone is making it difficult for normies to follow. It's amazing how they're pulling this off and doing a great job of balacing everything in a positive way, but its definitely confusing the heck out of many people.

Amazing news 😍
I would like to see in the sps dashboard in the game one of the fields being: SPS burned so far, so we know of the total 3 000 0000 000 SPS how much has been burned so far with licenses and soon with the SPS burn for DEC mechanism.
Thank you for bring us this amazing game!

Once claimed, these SPS rewards will be directly staked to the player's account. That means they will not be liquid, and will need to be unstaked over a 4 week period in order to be transferred or sold.

best plan, i liked this idea and in this way we will stake more sps, that is great updates ,

Yet another confusing step for some. I like it, but it will frustrate others.

For those of you wondering why $1 worth of burned SPS only mints 975 DEC rather than 1000 - the reason is to provide a small buffer which helps prevent certain potential price manipulation exploits. The same mechanism is used with the conversion process from HIVE to HBD tokens and has worked well so far there

If I remember correctly, the HIVE -> HBD conversion takes 5% as a fee, and the SPS --> DEC conversion will take 2.5% with above explanation.

Anyway, I put my trust in this process and just convert my asset to DEC. If DEC comes to the peg, it will be a 60% profit :)

Been looking forward to rank rewards for a long time. Happy to see them added in and things are going to heat up for sure. I'm sure there will be multi accounts but honestly not a bad thing. It means more demand for more cards, more "players" and competition for the remaining 2/3 of the SPS to be rewarded to active people in the community.

does this mean rip sps? sadge :(

WAY wrong... Exact opposite. SPS gonna spike. DEC will spike first though. Already is, actually.

You sure about that?

Monumental!

feel a bit screwed, so now the sps value is lowered because they want to push the dec price, when before they said thousands of times dec is only for trading and not for increasing value. apparently people who got masses of sps airdrop with dec now want to increase this value .......

How can someone who invested in sps now be happy that bots can suck the token?

You don't seem to understand how this is working. Once DEC is back at its peg any additional value will go to SPS instead of DEC so this is actually increasing the value of SPS, not lowering it...

yes can be good, my english is bad 😅

so now the sps value is lowered because they want to push the dec price, when before they said thousands of times dec is only for trading and not for increasing value

  1. The ranked battle reward pool for SPS was announced over a year ago in the SPS whitepaper, so we are merely executing on the initial plan that was set forward for the token which has been available for everyone to read and understand as part of their decision to participate
  2. What we have said thousands of times about DEC is that it is meant to be a product-backed stablecoin around the value of 1000 DEC per $1 USD. Again, these changes are meant to address one of the main issue of achieving that goal that we have working towards for years now and which can be incredibly valuable for the ecosystem
  3. The conversion mechanism for SPS to DEC allows all additional value that comes in to DEC above the intended value to go instead to the SPS token

How can someone who invested in sps now be happy that bots can suck the token?

Since the SPS token rewards will come from fixed reward pools, bots will be merely competing with each other for the share of the fixed pool. This is very different than with DEC where each new bot (or regular player) in the system caused more DEC to be minted.

This change, along with many of the other changes implemented over the past few months, will do a lot to reward higher win rates and getting to higher leagues over playing lots of games across lots of accounts - which is another goal we have talked about thousands of times.

okay thanks, I'm still skeptical, but in the past you have always surprised me positively, I am curious what will happen ;)

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Great job team, looking forward to this update!

Question: Do DEC and credits remain the only currencies used in rentals and secondary market purchases (buying/selling cards and later when the non-card market comes out)?

What will i recieve instead of DEC if i have 0 staked SPS?

Initially, you don't need staked SPS to earn more staked SPS. That'll come later. Right now, staked SPS will be handed out just like DEC is now. No worries for you, yet.

I’m looking very much forward to the change, especially how it will affect guild play.

Any thoughts on allowing the purchase of Credits with Staked SPS, I guess there are many players that currently are growing their account with earnings they get from the game, this will become a lot harder as SPS is staked. Also, has there ever been a statement made about the 24-hour refresh clock and an option to revert it back to 23h or at least give a 10-minute window not to have it pushed back a bit each day which makes it hard for those that really want a steady routine. Right now it feels like a wake-up clock that is being pushed farther a bit day by day which is super annoying & inconvenient.

Anyway, great update and I'm looking forward to everything to come. The game also is very enjoyable still!

Splinterlands is always evolving, I believe that today it is the play to earn game with the best team constantly working on the financial system of the game, which in my opinion is the main prerogative of a play to earn game

Cool! 👍

This is awesome. I just started getting into the game as soon as the airdrops stopped. I love this direction for rewards. Thanks!

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Great update, Im looking forward to get SPS rewards!!!

DEC has one up massively after the news. I was mildly skeptic regarding the upcoming change. After reading through the material I am sure this is the best path forward for @splinterlands at this stage of development. The team has been mostly making excellent decisions and I am proud to say that @splinterlands assets make up the largest portion of my portfolio.
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very good. thanks ;)

DEC has already increased by more than 25%

Great changes. !LOLZ

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That's six years in a row now.

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The summer of Splinterlands has officially started!

All seems to make sense. Looking forward to earning SPS . Exciting news.

This is awesome information

Avg chest is like 0.008 SPS in Bronze though.. Is this going to get addressed?

this is a smart way to keep the balance and the game sustainable, I see many long years in the game, since the game is focused on the long term (with some opportunities in the short term as well), but in a fun way and with a committed team.

@yabapmatt You are saying that we will earn double when we get SPS in battle. Can you please check that SPS price now? Battle reward is not started and SPS started going down. Don't you think SPS will go down to below 2 cents after the reward starts? We won't even earn half of what we are earning for now.

Will I have to buy DEC to level up my clan's buildings?

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