Hi guys,
after the latest update of SPS requirements for earning reward points I could not stop thinking about the implications to the Splinterlands Economy or Tokenomics, as some prefer to call it.
It came to my mind, that right now, the developers of Splinterlands are acting a bit like the Federal Reserve Bank. They are making the conditions tighter, raising the rates to almost 6% to signal a "slow-down" to the guys in the field, but also to put the brakes on asset inflation. The rising prices of the cards in 2021 have been a big problem in Splinterlands, as new players who wanted to play competitively in Gold, Diamond or even Champion needed a lot of good and expensive cards. When the changes started and the reward payouts were lowered, also the return of invest on these cards looked less healthier on the short term. But as of late the reward cards, the summoners and also some legendaries have become much cheaper. An effect, which was in my opinion triggered by the actions of the "central bank" in Splinterlands. So maybe right now is the best time to invest - when expectation is the lowest?
What do you think?
As I see it, the rules of demand and supply apply to the card market perfectly. :)
So, it would be the time to invest if you expect the demand to increase later. Where will this demand come from? New players? These hypothetical guys who will be asked to invest hundreds in cards and SPS, in order to start earning close to nothing?
If you think like an investor its maybe the way you see it. The demand must come from a broader adoption of online card games, a well functioning mobile version and the land update, giving the game more depth and places to discover.
To create more demand and attract new players it will take time. Nontheless, even now there are still people playing the game and building their decks.
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