About
The purpose of this proposal is to explore whether or not the SPS DAO would like to extend the rewards for SPS staking before they run out. This proposal was drafted based on the results of a recent poll that most strongly supported extending staking rewards with tokens from the unused LP incentives and from some additional feedback by SPS stakeholders in the Shard Holders room on Discord.
The chart below is for illustrative purposes to show that the current proposal would extend staking rewards through 2026 as well as what it would take to extend them through 2027 without completely reworking the distribution method.
Feedback overwhelmingly preferred extending rewards until the end of 2026, so that is why this proposal is drafted to do so. Please note that there are currently nearly 13m SPS in unclaimed staking rewards sitting in the staking rewards bucket, which means the bucket is actually smaller than displayed on the block explorer since some of those tokens have already been allocated even though they have not yet been claimed.
Proposal
If this proposal passes, the SPS DAO will reallocate 25,000,000 SPS from the remaining unused LP incentives to be utilized for extending SPS staking incentives. This will provide enough tokens to ensure that SPS staking incentives continue through the end of 2026.
So my initial reaction is to vote against this. While I personally benefit greatly from staking rewards, I think it might be better to reserve SPS emissions for other areas of the game, such as ranked play. One other option to extend the runway, without extending the actual amount in the staking bucket, is to emit a % of the bucket each month. For example we could emit 5% of the remaining bucket and this could then create an essentially "infinite" SPS staking bucket. Btw if we chose 5% it would essentially cause a "halving" in rewards for the first month (see below) (I estimated roughly 45M left in the bucket from October onwards). Theoretically we could also put in some mechanism that slowly replenishes the bucket in a dynamic way (e.g. some % of SPS earned from some sales could go towards it or something like that; doesn't need to be decided right now).
The upside of this kind of approach would be that we'd extend the duration of the runway infinitely without increasing its amount.
I supplemented this table with a plot and suggest exponential decay.
This is what Brave suggested with 5% monthly reduction.
You can see that decline is massive in earlier month, which I do not think will be good for the community.
What I suggest is an exponential decay of the rewards. I also believe that a plot is worth a thousand words, so I will let you decide on the exponent.
Yellow has an exponent of 0.02, which looks much less aggressive than 5% monthly reduction.
Hope this helps @clayboyn and @bravetofu
Thanks AZ. Very helpful to put this into a clear visual.
Btw @clayboyn had already suggested it a while back, so I think credit for the idea should go to him :)
I would argue emissions can be reduced by offering alternatives to SPS rewards as well. Why not have the option for rewards to be purely in glint, for those who just want to get more reward cards. Or DEC for those who would dump the SPS for DEC anyway because they want to buy cards or packs. Especially if you look at newer players, they want more cards and progression, not some token which is staked away for them and they can get access in 1-4 months and then they have to figure out how to sell, etc. It is cumbersome and "in your face crypto stuff", doesn't seem like a great NPE and I doubt that the development effort to reward another currency would be a major issue.
The DAO (meaning all of us) should at least entertain the idea that a circulation of SPS between players and the DAO is not the only way. I would even argue that a governance token should be held by the governing entities and not by the governed one, just because it needs it to reward.
Long story short, runway for rewards can be extended without allocating more SPS to reward pools by incentivizing other rewards.
Either way, a **game ** should reward gameplay, not simply holding a token.
My thoughts on this topic are as follows:
In short, I personally feel that there are more important uses for the tokens and there are definitely more sustainable ways to provide staking incentives than just handing out tokens until we run out. For these reasons I am voting no.
Completely agree with you. Staking Rewards are the first rewards I would cut. It is much more important we secure extended funding for validators, ranked, land, brawl, and tournaments. Be done with staking already. Holding SPS to earn in ranked and sign up for tournaments should be enough to entice people to keep it staked.
Все правильно, братец, согласен с тобой на 100 процентов.
Staking sps to get more sps is a dog chasing it's tail. I would remove sps staking rewards and not extend them.
Exactly, It's kind of a lose-lose situation
I also voted against it.
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I think we should end it and use the bucket for something better. But we really do need to rework vouchers if we do.
I have 400k SPS staked. That's enough to get the 10x multiplier in champ. Its enough to give me access to the shard holders discord group, The vouchers I get from that are negligible. I forget about them because they don't do anything. When a new card comes out I go check and am just disappointed because I'm not close to getting any meaningful amount of cards with them. Certainly not enough to play i champ where my multiplier puts me.
So its not about adding more to the voucher store, its about reworking them completely so they incentivize staking. Because if I can't do anything with the vouchers from 400k staked, what's the guy with 10k staked thinking? And isn't that the goal? To have thousands of players with a few thousand SPS staked instead of 10 players with 10 million plus?
So get rid of the SPS staking rewards and fix the voucher emissions and uses. Or get rid of vouchers all together and just make everything for glint and DEC.
Rather than debating when sps rewards should end, should we not be planning
a. what to replace those rewards with and
b. if sps effectively is done, what does the role of our dao become?
You replace it with a tradable energy token.
Energy token that can be distributed based on collection power or staked sps.
haha no. never.
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I think I'd rather this was used to reward players for winning battles - which requires SPS to be staked anyway.
i would like to keep it. If you are going to vote against, would want to see a shorter unstaking time frame. i.e immediate / 3 days etc
I need to hear the arguments for and against before I decide
I think the strongest argument "FOR" is that in the whitepaper a timeframe of 65 month is announces and without this proposal there aren't enough SPS for this 65 month. If 65 month was promised than they should be kept.
I'm voting against.
I believe the rewards that were allocated are in the whitepaper. That's ending so we should keep it faithful to the whitepaper unless there's a big reason to change.
When staking rewards were introduced, they were needed. SPS had no other utility (except tournament requirements). It wasn't required for rewards, there was no voting, etc. We have those things now. We also have the SPS burning for DEC. We can also rent out SPS to other players. We also get vouchers as rewards for SPS staking. Getting more SPS for having SPS staked is no longer necessary.
Without SPS staking rewards, we're giving out less SPS, reducing sell pressure.
More important than any of these is that the DAO will need to provide the SPS rewards for ranked and tournament play at some point in the future. It is much more relevant to the game to save SPS for those two things.
Sorry but I don't understand your point. If you tell that rewards where allocated in whitepaper and it should stay like in the whitepaper than you need to vote Yes cause rewards should run for 65 months according to the whitepaper but they will run out earlier cause obvisiouly the calculation was not correct, so to let the rewards run for 65 months according to the whitepaper there aren't now enough SPS according to the list above.
I don't care about the duration. To me, the amount is what's important. If we used that amount too soon, so be it.
Regardless, that wasn't even the most important argument in my list.
From the whitepaper:
There is clearly stated that they run 65 month, so IMO they should be paied out for (at least) 65 monthes and cannot end earlier.
It can and it should end earlier if they run out. In fact, we should have eliminated them long ago. What's important is to provide earnings to those who actually play the game.
I don't personally feel very strongly on this one, but it has been requested to find some sort of solution for people to vote on many times... I'll share my observations:
People have a lot of thoughts on this topic, on this one, I genuinely don't mind the rewards stopping personally, but I can understand why people don't want that happen. Ultimately the stake weighted poll and further feedback gave me the indication this is the proposal to put forward. The foundation crew approved it and I'm fine with however it turns out. I'm also completely fine with people voting this down and coming up with a totally different idea. I'd love to see the DAO get more involved with this process.
I believe increased ranked rewards based on stake practically cap around 500k sps staked though, so would there be enough incentive for people with higher holdings to keep their staked amounts instead of turning it into something that earns more actively?
It's a fair question... and there's now things like SPS rentals to factor in as well. Ultimately this one is just going to be up for the DAO to decide and either way I'm glad the proposal is pushing the discussion into a more open public forum.
It would add some credibility to the plan we laid out if we let some of these pools actually end. SPS will not ever go up substantially until some of the sources dry up.
What if we replace more than we emit on a yearly basis?
Just vouchers rewards for staking are not enough, if someone doesn't play ranked no point in keep sps stacked, even rent them is impossible due to bots or no demand... If this proposal fails I will just unstake
why not use the same funds and extend it even longer? 4 years instead of a year and a half offering a slower trickle of new supply. It's already crazy over saturated and needs a slower print.
I'm absolutely against allocating any more SPS for staking rewards. Why should the DAO reward the mere holding of SPS, if on the other hand it wants to be paid for the mini-set in SPS. This makes absolutely zero sense to me.
If you want to reallocate the SPS instead of keeping it in the coffers (which I think is reasonable), then go ahead and push it into ranked rewards. It will still reward staking SPS, maybe even do something for the absolutely oversaturated SPS rental market. It will also demand that you actually play the game to get the SPS, you know, have cards.
There is no reason to reward merely holding SPS with more SPS. If some non-playing investor type will unstake and dump his SPS because passive incomes ends, great, because chances are all the staking rewards ended up on the market anyway.
I can't help but underline once more that there is a proposal passing currently which gives a hefty discount for paying in SPS because the DAO wants SPS. Why on earth give out SPS at the same time to incentivize it not being put on the market?
maybe cause in the whitepaper staking rewards for 65 month was promised and from what I can see the SPS in the wallet aren't enough to keep this promise or you think it is a good idea to break this promise ?
This proposal is about allocating additional SPS to staking rewards. So if anything, this is going against the whitepaper, by prolonging the staking rewards which are set to expire mid of next year by another 6 months, see the table above.
That said, I don't like how whitepapers are used as set in stone, they are an idea and things must be adapted. I'm just against this adaption, because giving more SPS as rewards for non-gameplay activity is a DEFI move and SPL should, and mostly wants to be, a game. So don't waste SPS on paying people rewards for staking. Especially not when simultaneously a mini-set is coming with the main purpose of gaining more SPS.
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I honestly hope that this is just for say yes we want to use the LP tokens and that another proposal or vote will be for the length of time. 1 years 2 years 5 years etc. We need to start slowing down SPS being given out we give way too much out and it's why nothing ever moves around here.
I just downvoted this proposal. I want us to go back to the drawing board and suggest an alternative before we go too far down this first solution. It may still end up being preferred (and if so maybe we go back to it) but I'd like to see an official percentage-based solution proposed. @clayboyn