Any analisis that starts with a "with the shrinking playerbase" its going to be wrong.
The idea is not to have a "shrinking playerbase".
If you cant turn around the "shrinking playerbase" to an "expanding playerbase" nothing will make sense. No asset will go up, no matter what you do.

Cutting down on rewards on the "play to earn" side of things this wont help turn that around. More players will leave. This will be another blow to current and future players.

In conclusion. This, as is currently written wont work. If anything we need to give "playing the game" aka ranked and tournaments MORE, not less if we want to attract new players.