When SPS airdrop began over a week ago the initial evaluation of the token peaked at $0.869 and have now drop to $0.27. The initial SPS price exploded once the airdrop began but prices have since appear to have falling. In fact SPS is on a continue downward trend. While DEC has remain steady although 5x from its parity. DEC price is justified since it can be used to buy Splinterlands assets or cards on the open market. However to date no real application for SPS beyond trading and staking it.
One thing I am certain with the developers of Splinterlands is to not doubt the future prospects of every new expansion. SPS token is no exception and there was a white paper regarding SPS written a few months back. Today I like to summarize some key points in hopes to make people realize how valuable SPS with its potential as part of the Splinterlands ecosystem.
Max Supply?
There will always be a max supply of 3,000,000,000 SPS ever created. The current time table of SPS distribution are as follows:
Presently as of August 2021 Airdrop and Staking / LP have begun which maybe part of the reason % stake earned is currently high?
It is worth noting that once DAO is activated there is potential that even this distribution of SPS can be modified depending on majority vote. For instance the Foundation / DAO 10% distribution of SPS can be changed by majority vote down the road.
Decentralized Autonomous Organization
Speaking of DAO it is short for Decentralized Autonomous Organization. There are smart contracts built within the Splinterlands' ecosystem through Binance's Smart Chain (BSC) blockchain. This is done because BSC has transaction fees at lower rates than ETH. If and when ETH transactions fees can be low for practical use then there can be a potential switch of SPS smart contracts over to ETH blockchain.
To put DAO in simple terms there will be instruction codes in BSC that are voted on SPS stakeholders. The majority votes are then used to execute built in codes that will in ways effect the Splinterlands game in some form. An Oracle is the witness that makes sure the smart contracts are executed and operates smoothly. Oracles are selected by SPS stake holders.
In short not using Binance will not effect a gamers' experience in Splinterlands. The only difference when using Binance is that when a player stakes SPS in their Binance wallet they have the ability to govern DAO while staking SPS in Splinterlands does not. Both staking in BSC or in Splinterlands in game will give stakeholders voting rights for in game activities.
How much SPS can you earn daily?
The biggest question of them all is how much SPS can you gain now? Presently the airdrop that occurs in the span of 365 days or 1 year in daily increments has begun and the point tally system that is used for air drop distribution is shown below. The math formula for air drop distribution in simplest form is your total points divided by the total points of that particular day from all players. That number then multiple by approximately 1.1million SPS distributed daily in the air drop.
It is worth noting currently a Dice pack cost less than Untamed however the points value to earn in air drop has the Dice pack 50% more than Untamed. Just something I noticed and assuming players wish to earn more SPS it would be favorable to hold Dice packs. The drawback of course is that Untamed packs could potential to increase even more in price than where they currently stand.
Bulk use of SPS Ongoing!!!
I like to compress the remainder of what SPS can do in this part of the blog because really it is not completed as mentioned in the white paper. Items such as voting in DAO, integration of use in the land expansion, integrating SPS use in promotion sales such as purchasing new booster packs would require staked SPS or participating in tournaments with staked SPS, and the biggest item I see is play to earn. Play to earn SPS by either staking your SPS to players you believe will win a lot or stake it to yourself so the more you win the more SPS you earn.
I can not help but emphasize that 30% of the SPS total in circulation will originate from play to earn and another 30% from Staking / LP / Oracle rewards. Most of these distributions besides staking and liquidity pools have yet to be up and running.
Conclusions
I wrote this post to point out the key elements that will drive the price of SPS. It should be clear that a majority of these elements have yet to come out and hence likely why SPS is being sold off. The time table Splinterlands' developers have for the integration of SPS into the game are as follows:
Maybe it will be ideal time to start accumulating more SPS tokens if one has little to none right now as the potential for its use in the future are clear but yet to be active. There maybe delays along the way as many of the integration requires tremendous work from the developers. However one thing is sure there is a lot of reasons to own more SPS than none. To me this maybe one of the easiest cryptocurrency investments one can make if they are willing to hold long term. There is a lot to look forward to with the SPS token, so do not over look holding it or buying some more before it really gets utilized.
If you wish to read the entire SPS white paper where all this information originated from click on link below:
https://sps.splinterlands.com/
Until next time thanks for reading!!!
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