SPT 55-Day Calculated Passive Returns

I wrote a post taking a closer look at Splintertalk.io and the SPT token 2 months ago. (Link). By making that post, I talked myself into accumulating some more myself. As usual, I kept close track of the returns and these are the numbers so far...

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In that previous post, I came to this conclusion:

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The price at that time for 1 SPT was 0.00020$ and I started cost-average buying slowly as very little is needed to really push the price up since the supply on the market along with the trading volumes are extremely low. The maximum price I am willing to pay for these tokens right now is 0.00025$ which I see as a really good risk-reward zone.

This is how I cost-averaged my way in below my target price while getting daily passive returns and some more SPT from blogging along with the percentage returns each day on the delegation.

The average daily returns you get by leasing out SPT to the @monster-curator initiative based on my numbers is around 0.12% which brings it at around +43.8% on a yearly basis all calculated in SPT. I visualised it in a chart taking the 7-day average numbers comparing the Delegated SPT to the yearly returns also based on 7-day averages. I did most of my buying early on and slowed it down as price got higher above my price. I continue to add both my daily passive delegation returns and my post rewards compounding everything.

Looking at the tokenomics, it all comes from inflation which is really high at the moment and the only function of the token right now is to have tokens to get more tokens along with getting content higher on the trending page of Splintertalk.io.

There is no token burn mechanism yet or an outside use case for the token but they are planned in the future. I see front-running these in anticipation while nobody is really watching as a nice opportunity.

To do some deeper calculations, it is important to know how the token and its supply work which was highlighted in this post by @flauwy (See screenshot below)

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As far as the value goes, right now there are ~62 Million tokens in circulation with 96k being added each day. At a price of 0.00025$ it comes at 24$ daily or 8760$ on a yearly basis. It will take over a year for the total tokens in circulation to reach 100 Million which will come down to only a 25.000$ market cap. Well over 50% of the inflation will go directly to curators as not everyone is using their SPT Power. Even when looking at the value purely from a blogging reward perspective it is not even that crazy compared to many of the other coins. Add the planned function for cosmetic NFTS in Splinterlands to work with SPT and a possible burn function and it's hard to see the price go below 0.00025$ this year. I also have been observing the market on hive-engine and noticed that there are more who try to accumulate. Regularly someone steps in buying all the sell order up to a point way above 0.00025$ for 100$ worth.

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MONSTER CURATOR

The @monster-curator project now has a whopping 26.5 Million SPT delegated to it which is close to half of the circulating supply. They seem to be spreading the upvotes around in a fair way and everyone that puts some time in creating good quality Splinterlands related content using the SPT tag will get picked up with a good upvote. Also everyone that joins in on the Weekly Battle Challenge also is getting a SPT upvote from @monster-curator. There are currently 42 different users who delegate their SPT to the project to get passive returns which is in most cases way more optimal and time-saving compared to doing manual curation.

From	Amount	Symbol	Created	Updated
@abrockman	9500000	SPT	3 months ago	18 days ago
@flauwy	2563171	SPT	3 months ago	6 hours ago
@kiokizz	1270000	SPT	3 months ago	10 days ago
@toocurious	115024	SPT	3 months ago	3 months ago
@foggybottom	1700000	SPT	3 months ago	17 days ago
@zaku-spt	742209	SPT	3 months ago	3 months ago
@broxi	163322	SPT	3 months ago	16 days ago
@cryptomancer	2528352	SPT	2 months ago	28 days ago
@hatoto	33435	SPT	2 months ago	19 hours ago
@claudio83	31000	SPT	2 months ago	last month
@suprememagus	10000	SPT	2 months ago	2 months ago
@dkid14	195969	SPT	2 months ago	2 months ago
@syyed	190687	SPT	2 months ago	7 days ago
@allcapsonezero	60135	SPT	2 months ago	2 months ago
@jznsamuel	37431	SPT	2 months ago	3 days ago
@lifeskills-tv	50000	SPT	2 months ago	2 months ago
@costanza	442470	SPT	2 months ago	13 hours ago
@galberto	60000	SPT	2 months ago	2 months ago
@splinterstats	100000	SPT	2 months ago	12 hours ago
@rehan12	196108	SPT	2 months ago	5 days ago
@sevenoh-fiveoh	8475	SPT	2 months ago	last month
@khazrakh	14566	SPT	2 months ago	yesterday
@felipejoys	22.973	SPT	2 months ago	yesterday
@briight	3	SPT	2 months ago	2 months ago
@forealife	465000	SPT	2 months ago	2 months ago
@xabi	177050	SPT	2 months ago	13 days ago
@magnolia-maggie	221	SPT	2 months ago	2 months ago
@mercurial9	48313	SPT	last month	10 minutes ago
@oakshieldholding	23886	SPT	last month	7 days ago
@alokkumar121	24178	SPT	last month	23 days ago
@kikero	5459925	SPT	29 days ago	29 days ago
@netaterra	114378	SPT	25 days ago	3 days ago
@ahmadmanga	5901	SPT	25 days ago	6 days ago
@louis88	5000	SPT	19 days ago	19 days ago
@behiver	25427	SPT	13 days ago	5 days ago
@dune69	1129	SPT	12 days ago	12 days ago
@followjohngalt	1844	SPT	12 days ago	12 days ago
@niallon11	495	SPT	12 days ago	12 days ago
@idiosyncratic1	243	SPT	12 days ago	12 days ago
@freemonster	50001	SPT	11 days ago	11 days ago
@caladan	1097	SPT	7 days ago	5 days ago
@sharkmonsters	90000	SPT	6 days ago	6 days ago

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I know at least some of the 25 that came in after me did so after reading my initial post and many continue to compound their earnings. There is no minimum requirement to delegate and the daily payouts are being done automatically without transaction fees. I will continue to track this token and likely bring more updates on how it is doing in a couple of months from now.

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Conclusion
I'm quite happy with the ~440k SPT I bought and accumulated over the last 2 months leasing it out to @monster-curator to get passive returns in anticipation for the token to (hopefully) get more use cases. I will continue to buy more in case the price goes below my personal 0.00025$ target price but I'm also fine if this opportunity to buy that cheap is gone now. I by no means see this as a serious investment but more as a fun token with some potential and enough reasons to believe it's undervalued. Regardless if it goes up or down, I'm all fine with it.

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Also See: LEO Miners 50-Day Calculated Returns

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