368b0c41c7a09a3c466a4b856d2b24adbfddf63e
Proposal
The DAO will acquire the unused Team SPS allocation
which from my understanding is not useable by Splinterlands team for legal reasons.
This will be used in part to help drive DEC to peg.
Purpose
The best thing we can do for SPS is to get the so called flywheel started where players burn SPS to produce DEC.
There are many ways to accomplish this.
Most seem to rely on the community spending more of their resources to acquire things in DEC that would either go to the DAO or the Splinterlands company.
Aside from the risks of the DAO holding DEC, which has a finite upside, the community has been asked to give a lot for the good of the ecosystem.
This proposal seeks to balance that effort and require some sacrifice from the team to help correct some of the mistakes of the past.
The DAO should be holding as much SPS as possible so that all SPS stakers can realize the upside of a growing demand and scarcity for SPS, but because of the way SPS and DEC are intrinsically tied together, some short term pain in SPS prices to get DEC to it's intended peg sooner may be warranted.
The sooner we can get DEC to its intended value $0.001 USD,
the sooner SPS will start being burned for our transactional currency DEC
and the sooner we can get a floor under SPS prices and start to achieve rising values.
When that happens, and as the whitepaper rewards distribution starts to diminish, we want the DAO to have as much SPS as possible to fund future rewards.
Execution
Up to 48 Million SPS (the same as what was allocated by the DAO from team funds for Tower Defense)
will be swapped for DEC in the DEC:SPS LP at a rate of 65,000 SPS a day for up to 730 days (2 years).
The DAO will continue these transactions daily until
- DEC is at the intended peg of $0.001 USD or
- all 48 Million SPS allocated by this proposal have been spent or
- The DAO votes to change or update this proposal.
All the DEC acquired by the DAO through this proposal will be burned.
The remainder of the tokens received from the team allocation are to be held in reserve unstaked.
Risks
- This proposal seeks to increase the inflation of SPS by a small amount in order to start the DEC:SPS flywheel sooner (an additional 65,000 on top of the roughly 1,000,000 daily SPS minted).
- The community will likely have to endure some short term pain in SPS price until the flywheel spins up and brings the floor under SPS.
- There is also some risk in changing the terms of the whitepaper however this is not without precedent (after all Tower Defense rewards come from Team funds)
Rewards
- DEC should reach peg much faster
- Drastically increases SPS holdings of DAO (Team fund use would likely be voted by DAO anyways no reason not to add to DAO totals)
- Demonstrates the power the DAO holds and increases the value of SPS as a voting token.