b31851771c26c6e88acb5f5b79656384dec23f5e
The goal of allocating a portion of packs from the sale to the SPS DAO is to allow the DAO to retain a relatively small number of packs to use for promotional purposes. Unfortunately, we believe that the way it is currently set up allocates significantly too many packs to the DAO, which will be a major problem as the set gets closer to selling out due to the new jackpot prize mechanism for the Arcane variant cards.
Currently, 10% of the unsold packs each day are allocated to the DAO treasury, however, since only a few percent of the available packs are sold each day, 10% of the unsold portion is more than the total number of packs that actually enter circulation.
Please see the table below for some specific numbers as of the time this proposal was written:
| Pack Type | Amount Sold | Amount in DAO | % in DAO |
|---|---|---|---|
| Standard | 264,251 | 267,113 | 101% |
| Alchemy | 159,852 | 48,735 | 30% |
| Legendary | 22,303 | 27,520 | 123% |
As you can see, the DAO currently holds nearly double the amount of total packs that have been sold, vs the originally intended target of 10%, and this percentage is increasing daily.
We believe it will be much simpler and have less potential for issues if we just choose the number of packs that the DAO should have up front rather than using the current percentage-based system that varies based on sales.
After discussing internally and with many SPS DAO stakeholders, we believe we should allocate the following number of packs to the DAO:
- Standard: 12,000
- Alchemy: 4,000
- Legendary: 2,000
This is nearly $150,000 worth of packs which we believe is more than enough to use for any promotions the DAO would like to run while not causing issues for the jackpot prize system or worry that huge amounts of packs will be put into circulation at some point in the future, lowering the scarcity of the cards.
If passed, this proposal will have the following effects:
- The DAO treasury will burn all three types of CA packs in the treasury beyond the amounts specified above.
- The mechanism for allocating additional packs to the
sps.daowallet each day will be stopped.
Why This is an Issue
The jackpot prize system introduced with Conclave Arcana awards special cards (Arcane variants, Archmage Yabanius, etc) randomly among CA packs based on how many cards are in the jackpot prize pool compared the number of unopened CA packs and the number of CA packs still remaining for sale.
For example, if there are 100 cards in the jackpot prize pool, and there are a total of 20,000 unopened or still for sale packs, then the next pack opened would have a 100 out of 20,000 chance of receiving a prize card (or a 0.5% chance).
Currently, there are still millions of packs left for sale, so the chances of receiving a jackpot prize in each pack is quite low, but as we approach the set selling out (no later than March of 2026) the chances increase dramatically. The goal of this is to create an exciting end to the CA sale and hopefully encourage pack purchasing and opening at the end which will generate much needed revenue for both the company and the SPS DAO.
If the DAO holds hundreds of thousands of unopened packs, as is currently the case, then even at the end of the sale it will be very unlikely to get a jackpot card when opening a pack, and the majority of the jackpot cards will never be awarded for as long as the DAO holds on to those packs, since they will not be opened.
In my opinion, this would undermine the entire idea of the jackpot prize pool, significantly reduce sales, and should be addressed as soon as possible.
Why It Should be Addressed Now
Some players have expressed concern that if we make this change it will have a large effect on the chances of getting a jackpot card when opening packs. While it is true that the chances of getting a jackpot card in a pack will increase if the DAO does burn most of their packs, the change will be relatively small if it is done now due to the fact that the vast majority of the packs are the ones remaining to be sold.
If, however, we wait until the sale is closer to ending, or ended completely, then it will have a dramatic effect that will significantly penalize players who opened packs before the burn. That is why it is of the utmost importance that this be addressed as soon as possible.
Here are the current numbers as of the time of writing to show the exact change in jackpot prize chances per pack as a result of this proposal:
| Pack Type | Unopened | In DAO | Remaining Sales | Jackpot Mult. | Total |
|---|---|---|---|---|---|
| Standard | 12,502 | 267,113 | 1,754,977 | 1x | 2,034,592 |
| Alchemy | 4,236 | 48,735 | 350,994 | 3x | 1,211,895 |
| Legendary | 1,604 | 27,520 | 175,495 | 6x | 1,227,714 |
Based on the above table, the total packs outstanding used in the jackpot calculation is 4,474,201, and, as of the time of writing, there are 4,191 cards in the jackpot prize pool for CA packs. That means that currently, each Standard Pack has a 4,191 out of 4,474,201 chance (0.0937% or 1 in ~1067 packs) of receiving a jackpot card.
If this proposal is passed and the majority of the DAO packs are burned, then the total packs outstanding will be 3,931,809, and the chances of each Standard Pack receiving a jackpot card will be 4,191 out of 3,931,809 which is 0.106% or 1 in ~938 packs.
Scarcity should be driven by a growing player base and increasing demand, not whatever this actually is
burn it up lets go
This seems like a no-brainer, light it up!
Congratulations @splinterlands! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 690000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPGlad to see something happening.
Personally, I'd like to see the DAO receive 10% of the packs sold before the rest get burnt. EG 100 standard packs are sold over a day, and the DAO gets 10
Was definitely going to be a problem with most of the BF being in the DAO at the end, good time to burn now
I dont think we should ever burn packs.
I feel we sell unlimited for a set time limit that a hard stop.
The DOA's portion should be set in stone up front, I hate changing things already set... I understand needing too sometimes.
I also think the DOA should use old packs for new revenue...
Example, bid on CL but add BF... Or something cool in the future with CA, bid on them for some groovy promo of some sort. Add some sort of land even that has entry fee and comes with packs....
BUT.... I trust you guys on this.... i just rather make something fun out of it and not sure how to solve the discussed issue and achieve that.
It is clear there is too many though.
I have thought about giving the DOA 0, and instead of DOA paying the team, the DOA buy packs....
Burn it. Less value dilution for people who actually buy backs.
Good proposal, makes sense to do this now rather than wait till the end.
Why not just exclude DAO packs from participating. I'd rather the DAO hold current packs than burn them. Burning helps current pack holders bags but hurts the DAO bottom line. No-one knows what the future holds but hopefully its 10X+ the player base. It would be wise to keep the packs to sell for future profits. Thus providing liquidity for the DAO to use in was thats to be voted on by SPS holders. If future markets doesn't allow for pack resale than the DAO can continue to hold until the market does. Its better to have extra options (holding packs) than to not have them (burning packs).
Edit:
I always thought it be a wise move to hold XX thousands of each set to introduce X years down the road as Retro Packs. Little cost would be required to do such (just holding) the DAO would have already paid to have the packs created. The DAO could commission the SPL company to re-introduce them.