The typical prisoner's dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process.
The likely outcome for a prisoner's dilemma is that both players defect (i.e., behave in self interest), leading to suboptimal outcomes for both, in other words value is left on the table because neither player has his optimum output.
Not to get too deep on this, in the Nash Equilibrium, a decision-making theorem within game theory, it states a player can achieve the desired outcome by not deviating from their initial strategy.
The Nash Equilibrium in this example is for both players to betray one another, even though mutual cooperation leads to a better outcome for both players.
And that is what is happening right now with vouchers on Splinterlands… everyone is selling.
Big holders are dumping vouchers on the market making the value go under US$ 0.55 not even the launch of RIFTWATCHERS and TOWER DEFENSE NIGHTMARE were able to pump up the value back to the early week US$ 0.85.
Recently I was listening to “NFT Gaming & Collectibles” on the video Talking Runicore With Splinerlands Creative Director - Nate and Gank compared Vouchers to Cupons… and I dare to differ.
Vouchers have been given to SPS stakeholders as proof of time/stake just like a credit card and airlines use miles as a proof of partnership.
A coupon is a DISCOUNT .. the Splinterland voucher right now is a REQUIREMENT … you can not purchase a RIFTWATCHER without a VOUCHER making its opportunity cost completely subjective to people who want in on the new Splinterlands expansion … If every owner would hold their vouchers limiting supply the value would naturally go up due to existing demand, in hindsight the market is flooded with them as if they were easily acquired… and that is not true.
Here is my argument:
Vouchers are worth whatever opportunity value the holders wish to attribute to it … because the team gave that power to us … the SPS holders and SINKS they are creating, but if we the market makers ignore this, they will undervalue this amazing opportunity to add value to the ecosystem.
Sure by being a whale you can do whatever you want … you move the tides we kriLL move in. but here is the harsh truth … you are leaving money on the table and slowing the market cap rise, you can profit more by reducing the supply short term while still maintaining a huge bag for later.
As i write this line vouchers keep going down even being necessary to purchase 3 (RIFT, TWD and NODE) of the current Splinterlands pool of products.
Bottom Line, we must escape from the Prisoner's Dilemma!
We all can gain more by working together and hold down the sale, at least while they sell for ⅙ of the soft PEG.
But the TRUE outcome depends on the whales … they are the ones who have to decide whow the VOUCHER MARKET is going to be played.
And if any of you guys have any other ideas on how we could tackle this problem I would love to know.
Until next time.
Stay conscious.
THIS IS NOT INVESTMENT ADVICE
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice, please do your own diligence.
