Grain Economy
It hasn't been 2 months since the Land launch at Splinterlands (Nov 28, 2023) and we are now flooded with grain. Flauwy recently wrote a post listing how much grain is getting produced in each region. He wrote:
we are seeing a whooping 4.6 million Grain per day produced - just in Central Fire alone.
At this rate we will see a billion Grain circulating in no time...
I agree. People are producing staggering amount of grain and there is NO utility what to do with it right now. Vugtis alone have nearly 40M Grain, and he is actually scaling back last I heard, because there is so much grain in the system, it is actually more prudent to run a slight grain deficit and buy grains from secondary market, than use a lot of plots to produce grain. You may want to consider turning on research on some of your grain plots. Here is the secondary p2p market.
Although in-game, 1000 DEC = 1000 grain; in the p2p market 36 DEC = 1000 grain! That is a whopping 97% discount. If this is not a fire-sale I don't know what is! What is more alarming is the fact that there is no official grain market (LP) yet. A lot of people, including me, is not comfotable trading in p2p market, so even if they have a lot of surplus (like me, 8M surplus), they are lot really selling. Imagine what will happen if that market is available! Grain is basically worthless. There is a word for this kind of economy of Zimbabwe. Its called hyper-inflation.
How do we fix Hyper-inflation?
- Tighten everything! Reduce inflation (may not be easily possible here).
- Give utility to the currency/token (possible here). Lot of land features are not active. Give all future elements a heavy dose of grain requirement.
- Open the LP, it is better to get a bullet to the head, than death by thousand cuts! Give incentive to hold grain.
- Raise money externally, use that to improve NPE (new play experience). Basically enable people to like the game, people currently are losing interest.
The Splinterlands