Tournament Fees and Their Impact on DEC Supply Reduction
It's been long since Splinterlands tournaments removed their fees for entering a competitive tournament, which allowed many accounts to join. This is beneficial to many players because they can enter every tournament in the game without paying any fees. Although tournaments do not require any fees every account must achieve the necessary amount of staked SPS and collection power for them to be able to join. This creates an opportunity for the competitive players to earn a decent amount of SPS as a reward for competing in the tournament and placing on a specified rank.
However, the downside to those free-entry tournaments is some accounts are registered but not able to put their team line-up when the events start which results in flee. That is because or maybe they are busy or forget that they have entered a tournament. For accounts that are renting cards and staked SPS when tournaments start their rented cards and SPS must have expired. Fleeing in the tournament will result in an easy win for others because they can get a free win but the integrity of the tournament will be useless because there is no competitive gameplay that is occurring.
Now that the proposal has passed which is to return the tournament fees which will be payable through (DEC), Splinterlands implemented it immediately. This time it will irradicate those fleeing accounts it doesn't mean there will be no free wins there are still some because of some circumstances but very little chance of occurrence.
Impact On DEC Supply Reduction
Tournament fees payable through (DEC) create another utility for this token which also reduces the (DEC) supply because those fees will be burned which creates a sink in the said token. This is good because (DEC) supply has grown over the years ever since it was introduced in the game. The token value has declined over the past months which should be at a pegged value of 1000 DEC = $1 which declined to $0.6 - $0.7. This is because of the lack of use cases and still being minted which could lead to oversupply of the token. It is also because of the declined value of the major cryptocurrencies like Bitcoin and Ethereum. This is not a huge amount of DEC being burned but at least this creates a (DEC) sink in the long run.
On the contrary, (DEC) may not be oversupplied if all lands will gonna be utilized. ALL Lands need to be staked DEC roughly 50,000 tokens per plot for it to able to mine resources at least for now Land 1.6. Unfortunately, lands are not fully being utilized. Don't have any idea of how many Land Plots are being utilized out of 150,000 lands.
Thanks for sharing! - @alokkumar121
