The first round of SPS staking rewards are set to drop tonight and with an eyewatering 800+% APR, it might be a little concerning for some that the inflation will erode the price of SPS. This concern isn't unfounded - just look at how the DeFi space has come along with all the Goose Finance clones.
In the whitepaper, it is clearly mentioned that the total number of SPS tokens will not exceed 3 billion. We have a cap unlike with many of the DeFi yield farms. Great.
Next, we need a total market capitalization. How much could Splinterlands be worth? With the land expansion and other developments coming along, I think $500 million wouldn't be out of the question.
Axie's worth around $2.5 billion and AlienWorlds is still worth around $250 million, well off its initial highs.
This works out to around 17c per token so it is not necessary that the price of the SPS token collapses drastically like we saw with yield farm tokens. Anyway, here's to more good stuff coming out of Splinterlands with lots of new players coming in over the next couple of years.
