58fca202ac7c2faeb4e24b55b87072e8fe9a264f
Proposal Payment
https://hiveblocks.com/tx/58fca202ac7c2faeb4e24b55b87072e8fe9a264f
Proposal
This proposal is for the SPS.DAO account to stake an additional 28,000,000 SPS for a total of 30,000,000 staked.
Purpose
The SPS.DAO should start capturing a higher percentage of SPS staking yield in order to be in a better financial position to support the goals of the ecosystem going forward. Many of the SPS rewards pools are time limited, and once they run out, the SPS DAO will need to be self-sustaining to fund rewards into the future.
Additional proposals can and likely will be made for how to deploy the new staking funds captured by the DAO. While there are some ideas for illustrative purposes below, they may require more discussion and risk diluting this proposal and so are NOT included in the scope of this proposal.
Current State and Desired Outcome
According to SPLEX (https://splex.gg/user/@sps.dao), the SPS.DAO account has 58,093,490 SPS at the time of this writing and only 2,000,000 of it is staked.
The Splintercards Staking calculator shows that a 30,000,000 SPS stake would yield a ~50% APR and ~$1,000 a day. This $1,000 a day represents missed opportunity that the DAO could be capturing to control SPS and Voucher Inflation and help ensure that the SPS.DAO has as many funds as possible to help sustain the economy going forward.
Potential Reasons to Support
There are many opportunities for utilizing the additional revenue but the scope of this proposal is for the SPS.DAO to stake these funds and start capturing the revenue as quickly as possible.
Some of those additional ideas are relevant to the proposal to only stake 28,000,000 additional SPS instead of the entire amount on hand.
If the DAO were to sell the 17,000 GLX a day at $0.03 per GLX and use those proceeds to buy DEC at $0.0006 that represents 850,000 DEC per day that the DAO could acquire to hold or use for LPs. There are just over 300 days remaining in the GLX Airdrop for SPS stakers and so time is of the essence for the DAO to capture as much as 250,000,000 DEC. 250 mil DEC would need approximately 6 mil SPS for the DEC:SPS LP at current prices (and more if DEC goes up without a corresponding rise in SPS prices).
Leaving approximately 28,000,000 SPS unstaked leaves flexibility for the SPS.DAO to fund liquidity pools or other future expenses while making an attempt to take advantage of earning opportunities (most especially the GLX airdrop) that will not be here forever.
Potential Reasons to Oppose
The largest reason not to vote for this proposal would likely be because the SPS.DAO would begin receiving approximately 6.3% of all SPS Staking Yield once the custodians execute this proposal. Current SPS stakers would see their yield go down by this amount.
Conclusion
To the extent that we have staked SPS, the Splinterlands community are all stakeholders in the SPS DAO and we will all be dependent upon the DAO to sustain rewards after the initial rewards period laid out in the whitepaper.
This proposal represents a strong first step towards maximizing the SPS DAO funds to for the good of the community.
Thank you in advance for your support and any thoughtful commentary on ways we can improve this proposal as a community.
edit: updated 11:15 CT on 1/12/2023 to add a description to the post "The SPS.DAO should start capturing a higher percentage of SPS staking yield to fund future goals for the community."