Everything seems to be losing its peg and DEC is no different. Splinterlands has a very good system to stop DEC from spiraling off its peg and the further it gets from 1000 to $1 the tighter the printing of DEC becomes. The DEC rewards from winning a battle are at the lowest I have ever seen but the price keeps falling.

What is pushing DEC price down

• High-rank chests now contain a LOT more DEC than they used to, so this adds to the printing factor. (More Supply)
• Some guilds already maxed out their buildings so there is no need to buy more DEC from the market to burn on building upgrades. (Less demand)
• Airdrop is coming to an end so players are less likely to hold DEC in order to get more SPS from the daily drops.
• Players removing liquidity and dumping DEC in anticipation of the airdrop end date.
• Fear over what will happen to the price of DEC once the airdrop ends and there's no longer an incentive to hold DEC.

A lot of my reasoning revolves around the airdrop being a little over a month away from ending. Investors/players are fearful about the future of DEC so they're willing to sell DEC at a loss to protect themselves.
I can't blame them, the current crypto environment is brutal. We've seen giant projects disappear in a matter of days. I don't believe this will be the case for Splinterlands.

How to fix the problem

Pegging the price on all the shop items was a great idea but that alone won't hold the price since packs are quite cheap on the secondary market. It will only cause a shop run and a flood on the pack's secondary market if the price of DEC gets low enough.

In order to fight the depeg Splinterlands will have to turn on the heat and start burning up some DEC. Lower the DEC rewards from chests for a while, maybe even adopting the same mechanism it uses for battle rewards. The burn from buying potions at the $0.001 peg isn't enough to bring the price back up, so I suggest also burning all the market fees (Increase them %1 if need be).

A new set of card skins would also help burn some of the excess DEC, giving the skins a use case like winning a little bit more RP if you use card skins.

I'm confident that Splinterlands will handle the situation properly, the team has proven time and time again to be very competent about the tokenomics of the game and I don't believe they will let us down now.

I don't want to spread panic, Splinterlands is holding up quite well, it survived a bear market before and it will survive this one too.

GIVEAWAY

⚔️ The rules:

• Upvote / Follow or Re-post is not mandatory but it is greatly appreciated.
• You just have to comment. If you use a different username on Splinterlands please mention the account where you want to receive the cards.
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The winner will be picked by a randomizer and announced in next week's giveaway post.

⚔️ Cards for this week:

Cards will rotate splinter every week, Fire -> Water -> Earth -> Life -> Death -> Dragon -> Neutral. This week if you win you will receive 1x Xenith Monk.

⚔️ Last week's winner:

I'm currently using this tool to randomly pick one comment to win the giveaway.
@flummi97 was the lucky winner from last week's giveaway! I will send your reward right away!

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