Splinterlands Fly Wheel
Today's townhall Aggy discuss the core measure success for Splinterlands is the price of SPS. Now everyone who has been playing and following has known for some time SPS had been hitting all time lows in price. People on the surface only see the current conditions but what we have to look forward to are the real reasons we have to invest in SPS. Long term investors will likely benefit the most and lets discuss why owning as much SPS now is better than ever before.
The Fly Wheel Effect
By definition a fly wheel is used to mechanically spin for the longest period possible once in motion. Of course no wheel can continuously rotate forever but the concept is what we are using for crypto investing.
In Splinterlands the fly wheel effect comes into place with spending DEC and burning SPS for more DEC. The amount of SPS forever is fixed but as more SPS is burned the less in circulation and potential higher prices even as demand is flat or maybe even rise. The big question then is what makes users want to spend DEC?
Land 1.5
The land 1.5 is being emphasized by Aggy as the fly wheel that will bring players to burn SPS for DEC and in return raise SPS prices. How this work is simply on the mechanics of Land. Once Land 1.5 initiates players will need DEC to stake their cards onto their plots. The staked DEC will force a limited supply of circulation of DEC for other uses, thereby making users want to burn SPS to obtain more DEC.
With SPS burned there will be less, at this time Aggy is estimating around 4.5 billion SPS to ever be accessible, but here is the thing, there is only around a little over 1 billion in current time either staked or in circulation.
The amount of DEC in total right now is around 4.7 billion and it will take around 7.5 billion to max out potential play of land 1.5. The bottom line is there are not enough DEC to go around and once SPS starts getting burned and the use of DEC continues to grow the end result is less SPS in circulation making it more valuable to earn.
Conclusions
If any of this is still difficult to understand then just simplify it by thinking SPS is earned in playing the game and so earn as much SPS as you can. How it is used is not as important now than just simply owning more of it. When the time comes where people want more SPS and know why they want to have them it will be too late to accumulate SPS for low prices.
Until next time thanks for reading!!!
I have plenty of other cards for rent! Just go on peakmonsters and check out the market place and if you are curious what I offer here is a link:
When supply is capped at 3 Billion , how come 4.5 billion is accessible?
!LUV
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(no space) to get help on Hive. InfoSps rewards daily distribution is included in that 4.5 billion total. So it’s important to accumulate more sps now as there will be less in the future. !LUV
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(no space) to get help on Hive. InfoIn addition to DEC burn I think we need more utility for the SPS token directly as well. SPS staking for ranked play should help but I would like to see additional utility given to it over time.
Bottom line Aggy drop the biggest nugget in today’s town hall. The fact that he believes the price of sps determines if Splinterlands is a success or failure I really believe he and the developers will find ways to make sps be much more valuable in the near future. Land 1.5 is almost out has got to be a great sign for things to come. !LUV !PIZZA
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(no space) to get help on Hive. InfoThe way we're seeing the market is starting to go where it is now and it's a lot better for people that they're getting a lot less of that time if they're holding money for a long time. If you want to invest, then there will be a lot of profit in the coming time.
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I think the change from CP to SPS will lock up a lot of SPS but that won't really change any of the new SPS being generated. They need a way to incentivize people to burn that SPS.
The flywheel will be the cornerstone of the game in my opinion. If we get to a situation where DEC needs to be minted with burnt SPS, then we could see prices of sps stabilizing or even going up. This would make the whole game more interesting from a financial point of view... The problem is the whole concept is more theoretical than practical. We will see if it succeeds...
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I am looking forward to seeing the flywheel in action!