If you look at the chart of the in game token of Splinterlands DEC, you can see that it lost a lot of its value during the last days. I wanted to understand what was the reason for this price decline and did some researching. Of course there isn't only one reason for a market movement but I believe there is a reason behind all this...
Check-out the video for my analysis
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You are right about this probably... Cutting off DEC rewards for Uniswap LP could be the reason for this price drop in the last couple of days... On the other side, the price would probably go down in either way as there are fewer DEC "sinks" today than it was before SPS tokens, the last CL edition cards... Fees in DEC are great, tokenomics for less printing is OK, but we need a strong use case for the token, as we had with PROMO cards, for example... Where people CAN buy a certain asset only with DEC tokens and they will go into burn...
I have the feeling that the team is trying to implement value for SPS mainly. I'm not so sure about DEC and you are right with all the DEC that is printed, some sinks are necessary. I don't know whether the brawl sinks will be enough.
yet another move by upper management to ruin the tokenonmics of the game. how bout those assholes use the millions of dollars they made off of us and use it to buy millions of SPS and DEC? bearish AF on the game.
I don't know whether they forgot that this could have this effect or whether they planned that price will go down like that...
Nice one! I think you could be right and your evidence were convincing too.
Although, we've seen steady decline in DEC and SPS atleast 3 months now.. and in my opinion the selling of packs has slowed down quite a bit too. I think that Splinterslands in general needs a big boost right now.
I think that what we have seen a couple of months ago, when sps was introduced was a bit crazy and unsustainable. We will get probably into a stabilisation phase now.
I wasn't thinking about it but that is a good reason for prices dropping lately. Do you know how much DEC was on Uniswap before these changes?
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I honestly don't know it represented but I heard from several places that they had money in these pools. So they were probably not empty :-)
So I see... Now here I was excited about how my rental income has gone up and up the past few days, but you have to ruin it and tell me the reason it's going up is DEC is falling. D'oh.
haha oh well. It's very interesting to see the reason, so thanks for the information. I wonder if DEC will now rebound and go up after the season ends with Matt adds the new reward cards that he mentioned in the town hall.
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I'm looking forward for the new reward cards and sorry about runing your rental income increase ;-)
Good catch! It makes sense to tie the drop in DEC value with the ending of rewards for Uniswap DEC LP providers. I wouldn't be worried about the price drop. It's at 2$ per 1000 DEC after all. Still overvalued, compared to the game tokenomics. :)
By the way, this started to be compensated with an increase on the rental market.
Yes it seems that rentals went up. The way I'm managing my rentals my prices can only go down lol. Need to change something there.
Great infographics analysis on what determined the DEC price to decline. Closing LP positions for sure determined a selling pressure which reflected on the price. But I wonder if we will see DEC prices reach again ATH like in the rush days. At the same time maybe Splinterlands needs to rethink DEC mechanics in order to improve its value.
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I believe that the team wants to give more value to SPS and I'm not so sure about DEC. I'm not too bulish for DEC.
I think this is a valid reason of the decrease of the value in DEC. Even though it was meant to be a stablec token, it was inevitable for the token to gain value after thousands of people start playing Splinterlands.
I believe the price will recover and Splinterlands team already has a sustainable plan for DEC value. So far so good in my side ^^
Thanks for informing us dear :)
I also think that it's inevitable that such big changes engender price dips. We will probably see a stabilization soon.
Excellent insight and analysis. Sharing this on Splinterlands Digest Twitter.
Thanks for the tweet :-)
Really good breakdown I was wondering too! !PIMP
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Thanks for the feed-back!
Thanks for the research! Didn't know about this update, and I think like you said, it's likely momentary.
I also believe so and we will get to a stabilization at a later stage.
It's an interesting hypothesis. That would explain why I got so many DEC rewards lately. This week I got almost $1.2 USD in DEC at current DEC price! But, isn't the DEC pegged to the USD, like 1000 DEC per $1 USD? If that so, I think the downward trend from last months will continue until it reaches that point of balance. Of course, if the devs do something cool and nice like what happened last year with SPS, then it probably will go up again. But at this moment, I'm not so positive about it. Maybe there's too much liquidity right now. I don't know. Thank you for sharing this video, @achim03! Have some !PIZZA, please! Let me see if !HBIT works, too...
I think that the peg has totally been abandoned but we might get there sooner or later.
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