Maybe I'm doing the math wrong, but this seems WAY too expensive and includes numerous unfounded assumptions.
Assumption #1. People will value these packs at $5.00 (they can buy them for $2.90 at current SPS price)
Assumption #2. They are likely to sell out (no recent sets have even come close to selling out[not even the last presale sold out with massive bonuses])
Assumption #3. SPS price will rise to 350 SPS = $5.00 (0.0143) (There's little evidence to support this idea unless the team makes these cards OP compared to other modern cards, which would cause other problems like increased cost of entry, purchasing fatigue, etc.)
Assumption #4. This will increase the DAO's assets (The huge 1.2B DEC cost means that if SPS only increases marginally to 0.01 and only half the set sells,(assuming most people logically pay with SPS) the DAO will only receive 1.165B DEC value of SPS for its 1.2B expenditure)
In conclusion, multiple cons including but not limited to:
Card asset inflation.
Higher cost of competitive entry.
Increased complexity discouraging new players.
SPTL team spending valuable production time when so many other things need to be done.
A very shaky risk-to-reward proposition for the DAO.
Easy pump and dump for speculators to take advantage of.
1.2B DEC released back into circulation while the price is already struggling.
All of that for:
Team gets big boost of funding.
DAO takes a gamble to maybe increase it's balances.
SPS price pump.
That's a hard no for me, and it worries me that so many heavy stake holders can't see these issues and are voting in favor. 😥
I have a couple of comments on your conclusions F4F:
con: card asset inflation... since we make the money by selling cards, what should we do to make money by the end of the year other than sell cards so that we run the business professionally?
con: spl team spending valuable production time when many things need to be done, what should we do for money on an annual basis - it takes between $3m and $3.5m to run our company on an annual basis (see #1)... and if we don't focus on money, then should we cut our staff? If so, will that do the things that you feel need to be done? Feel free to tell me what your priorities are that are higher than managing the business so that we cover our bills on an annual operating basis?
con: your analysis on the risk/reward prop seems to discount no more than 1/2 the packs sold (risk), but gives no upside to getting whatever SPS the DAO gets (reward). At best you say the DAO will get its money back, but that is making the assumption that you know it will only be 50% sold out. Maybe you are right, but it does seem like you to skew the facts to meet your narrative. There is plenty of upside to the DAO, you just assume that it won't happen.
pro: you talk about an SPS price pump. Who wants a price pump? We will actually sell more packs with lower SPS. I'm surprised you feel this is a price pump given that a) its not going to happen til December at the earliest, which means at least 3 months for the market to adjust and arbitrage the situation and b) neither the DAO nor the company benefits by a price pump.
I guess you feel this way, but maybe the reason you feel this way from other large holders is because they disagree with you. I know I didn't suggest this mini-set to get a price pump, I think my record is pretty clear over the years that pump and dumps don't work.
Thanks for taking the time to respond Dave! I know you're an upstanding guy and that the team isn't just trying to skin the DAO, but time will tell what the result of this will be.
I know it's expensive to run the company, at least the way the brass wants it done. I am a proponent of moving forward to match technological progress and use more AI assistance to speed production and reduce overhead. I think it's a little strange to be pushing into a new frontier of blockchain gaming while insisting on using outdated methods of production.
It looks like I'm out weighted on stake for this one, so I'll try to be supportive and hope for the best.
Hey F4F, thank you too for taking the time to respond. I appreciate it! I also agree that we will see the results, good or bad. And estimating today would be hard, much less in 3 months in the volatile world we are in.
I understand your point about using tech and AI to do many things, and I'd say we are moving faster than we were moving. Are we moving fast enough? Only time will tell with that too. What I'm trying to do is up our rate of production with what we have by using tools that are available. We've not only put out our normal deliverables, but doing extra new stuff too.
I realize we could take a harder approach and cut staff and keep doing the same amount of work, but my goal is to leverage some amazing talent and produce more instead. Both ways have their merits, and both are certainly always considered.
Regarding outdated methods, I would say that depends on the department. Some are moving more quickly, but I would 100% agree that our methods of production could be improved considerably. We are working on it, and improving it, but still have a long way to go.
Thanks again for the conversation and the respect of a cordial discussion. And I'm sure we both want nothing but the best for the community and the game!!!