You edited your message, I answered a lot of it above. But here's and additional answer:
you are viewing the bank's assets as a third party where you will not see any economic benefit (you only get to instruct them on how to spend their money).
I would argue the DAO is part of your personal assets because the value of the DAO will be embedded in the price of your SPS.
SPS has at most 3 billion issued (less now after nodes/RFW packs). The DAO already owns 300 million SPS (+ what comes in from nodes/RFW packs). That's 10%+ already, not counting past and future sales of nodes/RFW packs.
If the DAO gets another 200 million SPS just from RFW sales, then it will be over 500m SPS. That's the numerator.
For the denominator, in addition to the DAO holding say 500m of the 3B in SPS or 16.6%; the whole flywheel model Matt is implementing is designed to BURN SPS.
Example A:
500m
_____ = 16.6%
3b
Every year they will issue more things to be sold in DEC. That DEC will have to come from burning SPS. So each year the denominator will go down, but our numerator will stay the same or go up with earnings.
Lets say they sell just one mini set per year along the lines of RFW... 3 million packs at $5 each. That's $15m worth of DEC or 300m burned SPS at an average of 5c. So now the equation looks like this:
Example B:
500m
_____ = 18.5%
2.7b
Rinse and repeat each year. Also don't forget to include all the DEC that will be needed for other things too.
How does this affect each staked SPS holder?
There are 3 ways:
- the % of each player's outstanding stake will increase just like the DAO's listed above.
- the DAO should be the strongest holder of SPS, thus effectively taking their SPS off the market since they in theory should be the last seller.
- the DAO could vote to give things like dividends, asset distributions, or other value enhancing perks to SPS holders in the future.
NOTE on #3: while this is nowhere close to even being on the radar, the point is the assets are OWNED by the staked SPS holders and can be distributed however the community of SPS stakeholders votes. Obviously collectively we would all decide what is the best thing to do, and the same voting rules would apply so it would have to be more than a majority to make this type of decision.
Hope this helps you to understand my thinking.
Dave your response is hard for me to dissect.
I'm all for the DAO making $ - it should! i just don't like the way this proposal wants the DAO to make money. It competes for ROI directly against all those who lock up funds (already with a diminishing return) so they can vote on proposals such as this.
If you gain some momentum with 100 SPS for Riftwatcher packs i will vote - yes. I haven't really thought about that one too much.
edit: Might not have much staked SPS left to vote with if you keep lowering the return though hahaha
edit 2: your 'short term thinking...' sentence triggered me, so i apologies for my edited first response
From a pure investment perspective (where I as the investor want the best yield for myself no matter what else happens around me), the DAO SPS is not liquid (unless we vote to spend it on something like buying DEC for the LPs etc).
So, this proposal removes liquid SPS from the market. It puts it into the hands of an entity that won't sell it.
If the market cap of SPS is $100 million dollars and there are 100 million SPS, then your SPS is worth $1.
The price of SPS is determined based on the demand for the liquid tradeable SPS.
If the DAO (through initiatives like this one) gets 50 million SPS in the scenario above and the demand for SPS remains constant, the price of SPS will go up roughly 100% because people still need it to do other things, but there is 100% less of it around to trade.
And the best part for that scenario is that those of us with the 50,000,000 SPS are all partial owners of the DAO SPS too. It's ours to decide what to do with in the future.
Of that 6% SPS from the staking rewards that the DAO will be accumulating if this proposal passes, most of it will go to the largest stakeholders currently and hopefully they have the game's long term interests at heart, but a decent percentage of it will go to people who don't have SPS long term interests at heart and are just chasing yield to sell SPS for whatever the next shiny thing is.
We know the DAO will always prioritize what it thinks is best for SPS.
Micheal, I'm sorry for triggering you with that comment. You are (and have been) one of the most positive members of the game from the beginning. I meant no disrespect to you (or anyone), and I realize now I should've worded it better.
I understand how you see it and I will think of how I can explain it better.
I certainly don't think this is a proposal that should make you want to sell, I have a lot of SPS myself and I'm not a proponent of "lowering the return" in any way. In fact, my goal with anything that I propose (or vote for) is to make SPS stronger and more valuable. To me that's how we attract and retain players for the future.
Again sorry for triggering you and I hope you have a great day!!! :)