The first thought to kill all rewards for this pool as we enter a bull run where we will be seeking and desperately needing external adoption doesn't feel right, at all. It almost feels like the basis behind this decision was not well thought out.
This is especially the case when blue chip BTC/ETH holders will likely be taking profits and diversifying into smaller and even micro caps like us. Terrible timing! People use SushiSwap and will increasingly do so. BTC and ETH are where the real money flows from. The onboarding is hard enough, so why do we need to hinder a major onramp at this time? People not "in" the pool won't really care because they just want SPS to go up, which is short-sighted.
This is on top of directly punishing those who faithfully held in this pool over the bear market it essentially only existed in until late. Really unfair, especially if you consider the gargantuan amount of impermanent loss longer-term pool holders have endured to provide onramp and EXIT liquidity for those selling off during the bear market. This is the thank you we get? Also, suddenly try to kill this pool will ruin all the SPS whales' exit liquidity when they try to dump if SPS price rises. Was that considered, or is that possibly a part of it -- making it a bit harder to exit the ecosystem through a true DeFi channel?
Moreover, people enter these pools with the reasonable expectation that community members not participating in the pool can drop in and initially and randomly push for their rewards to vanish -- thus, financially hurting others. While tiny HIVE-based pools where people slosh around the real inflation remain unaffected, the ETH pool doesn't seem like the right target. Any tiny help to SPS' value here will be offset by irate pool participants -- people with the real external funds, not generally those stuck and living in the Splinterlands bubble who basically continue to compound what they had from early adoption/inflation. We want and need to facilitate and incentivize gateways that allow external funds to come INTO the ecosystem, not slosh around within it.
While leaving 650,000 SPS is better than nothing, how that number seems randomly assigned without any math displayed remains uncomfortable. The initial thought of completely removing the SPS payouts on this pool caused serious concern. We need more players to buy and use SPL assets, not people trying to manage SPS where it significantly hurts a pool we'd need during a real bull run. Doing this will really have very little material impact on the SPS price. It will however have a terrible impact on the holders and stakeholders -- pushing them away from the ecosystem and game.
Early pool holders have been hurt enough by the bear market, why punish them at all as they try to hold on and dig out of severe impermanent loss as ETH soars?? The pool performance during a bear market is not at fault, it's that the current player base is strapped for funds and doesn't invest a lot of fresh capital. Period.
RE: SPS Governance Proposal - Reduce SPS:WETH Incentives by 50%