Splinterlands - SPS burning is a must for balancing the supply
SPS total supply is capped at 3 Billion tokens which for me is a huge amount for Splinterlands governance. In a bull market, I would see the price token at around $0.10 to give a market cap of $300 Million for SPS cryptocurrency. That is quite high for a blockchain game but it can happen. We are lucky enough to also have a burning mechanism that we can use to fight the negative effects on the price of this fat supply.
Currently, the burning mechanisms are running and we've already started eating from the supply. Here are some metrics in this regard:
- 1,028,895 SPS burned to DEC
- 62,341,128 SPS burned from Node Licenses
- 894,789,769 Total SPS supply
- 3,000,000,000 SPS Maximum Total Supply
These stats are taken from Splintercards - a comprehensive informative site about Splinterlands.
As per the above metrics, we can see that we have currently 63,370,023 SPS burned out of a maximum of 3,000,000,000 SPS Total Supply. This translates to 2.11% of the Maximum Supply burned which is quite a pale number that doesn't have any effect in strengthening the token value. I understand that we need a good mechanism for rewarding players, but it also needs to offer value and motivate gamers to keep at it.
I would like to see proposals to extend the use cases for burning SPS and make it a more scarce resource, which should improve the price as well. Considering that we had an ATH of $1.07, I wonder if we ever again can retrace that. This should be something to consider and nurture for the benefit of the game and to make it stand the wear of time. I wonder what's your take on this and if you have any ideas on how SPS burning could be extended through new use cases.