The Splinterlands team has made a few changes pushing for the DEC token to reach its peg of 1000 DEC per $1. Some of it was implemented, while others were opposed when put to vote. Lets take a look at some data.
The DEC token is the reward token for Splinterlands and in theory it is pegged around the dollar with a 1000 to 1 ratio. This is at what price the game accepts the token for card packs.
The thing is in the last year the DEC token has lost its peg, first on the up side, and was trading 10 times above the peg, while recently it dropped below the peg, to 1000 DEC for 0.6$. In the last days DEC shows some strength trading at 0.9.
A few months ago, there was introduced an option to burn/convert SPS for DEC, where the base price for DEC is at dollar. This mechanism provides upper limit for the DEC token. If the DEC price increase to say $2 per 1000, then users can burn SPS for a fixed ratio of dollar worth of SPS to 1000 DEC and then can sell that on the open market and make profit from arbitrage. This in theory should transfer the increase in price from DEC to SPS.
Another change that was made is replacing DEC with SPS as a reward token for battles. This should constrain the supply of the token. There are few more initiative where DEC is being printed to be stopped with printing, like LP rewards and similar, and in the same time there is a transition to price all of the Splinterlands assets in DEC.
We will be looking at:
- Daily and monthly DEC created
- Daily and monthly DEC burned
- DEC created VS burnt
- DEC created from different pools
- DEC supply
We will be looking at the data for 2022.
DEC Created
First for the amount of DEC created. Here is the chart for the daily data.
We can see a steady amount of DEC emission per day up to June and then a sharp increase. There was a few spikes with more than 20M DEC issued daily in the period of June to August 2022. This was mostly because of the low DEC prices.
Then a sharp drop at the end of August and a tiny amount of DEC created in September and October.
The get a better representation here is the monthly chart.
We can notice the trend here as well, with June being the months with the most DEC created, and almost zero DEC created in the last two months, September and October 2022.
DEC Burned
DEC is burned for in game assets purchases and it is something that need to be taken into consideration. Here is the daily data.
A clear uptrend in the last months, starting from August 2022.
Here is the monthly chart.
We can see that from July there is more DEC burned, with a ATH in September where there was almost 200M DEC burned. Not totally sure but there might be some large team tokens consolidating in this month.
DEC Created VS Burned
When we put the numbers for created and burnt, we got this.
Clearly a change in the trend in the last period, again starting from August 2022. Since then DEC is basically deflationary with more DEC being burnt then created.
DEC Supply
Here is the chart for the DEC supply.
This chart probably shows the DEC supply in the best way.
The year started with 1.8B in supply and kept increasing until August when it reached more than 3B supply. Since then a drop in the supply and we are now at the 2.8B in DEC supply. In the last months there has been reduction in the DEC supply for around 300M tokens or around 10% of the supply.
Market Cap
While the DEC price has been on a roller coaster, especially in 2021, the market cap might paint a better picture for DEC, especially having in mind the rapidly changing DEC supply.
Here is the chart.
The year started with 9M for the DEC market cap. A sharp drop in the first half of the year reaching 2M in market cap in June. Since then the DEC market cap has been quite stable around the 2M USD, with an uptrend in the last week to 2.5M. This is still a low market cap for a token. For example the other stablecoin in the ecosystem HBD is around 10M, and those are tiny numbers when compared for the top stablecoins.
All the best
@dalz
Posted Using LeoFinance Beta
Not sure about this if your information is correct then there is a huge error and splinterlands devs need to be made aware as everyone in all of splinterlands is making decisions based off of the rich list cc @cryptomancer
From what i understand all of these accounts listed are representative from the SPLINTERLANDS perspective aka what is in the IN GAME WALLET.
So accounts like @sl-hive is the totality of what is in the Hive-Engine system. I think that's why you think there are ~2.8b tokens.
There are a couple of -eth accounts which represent what is floating around in the ETH ecosystem. We know there is at least 334m DEC over in ETH so these numbers are close though with these two I only see 290m dec represented.
The diesel pools have about 900m DEC in them so of the 2.6b in hive-engine quite a bit is in pools... but lots of us have tokens just sitting in hive-engine instead of in game because of the feeling of more direct control over the tokens.
Anyway there are several other splinterlands teams account and 3rd parties who keep the funds in a sort of escrow specially when it comes to other chains.
I just hope people don't read your blog thinking there is only 2.8dec... the evidence we have is that there is significantly more. OR there is a HUGE issue with the data provided by splinterlands in this richlist. However I do tend to trust a detailed itemized list.
The data above is from Hive Engine. I might add a disclaimer that this is what it represents.
DEC started as a Hive Engine token and expanded from there. I dont know the details how the team handles DEC, but yes, Hive Engine, or any other chain is a more represntative and secure way to say what is the supply of the token, then the in game balances. For example SPS has its base supply now on the BSC chain.
This said I have used the API bellow from Splinterlands for the DEC supply, to double check with Hive Engine, and the data matches.
https://api.splinterlands.io/players/balances?token_type=DEC&players=$INFLATION,$BURNED_CARDS,$SHOP,$DEC_REWARDS
Thanks for the feedback!
ok then this all makes sense you're looking at hive-engine only DEC and then your numbers are likely pretty accurate. Thanks
Yes Hive Engine, but the api is from in game that I use to compare. It is a breakdown where the dec comes from.
Thanks for the insightful post!
Regarding the supply, is that the total supply? The peakmonsters richlist has it as 6.3 billion, and they only count what's sitting in game. That would indicate to me a higher amount than 6.3 billion, yet your numbers say its under 3 billion.
It is the total supply... the peakmonsters data probably includes the burned dec as well... or some double tokens (escrow), for other chains
I think this might be incorrect. According to the peakmonsters richlist, there's around 6.3 billion DEC. (I might be wrong.)
https://peakmonsters.com/richlist
The supply data is corect, I have double checked from the Splinterlands api and hive engine, and there ia historical continuation ....
What the richlist above includes is most likely the DEC in the null account(burned) in that first account sl-hive... or some tokena held for other chains, duble counted
NOPE... this is what is in null and is not reflected in the richlist
speaking of burning tokens -My naughty crypto phantasy is for some super rich and bored dude to buy a shit-ton of Hive and send it to null :P
Lol .... just becouse :)
and it would lead to a nice price increase for the rest of us :)
The rest of this month is going to be interesting to see what happens with DEC. Being that millions of dropped will be removed. I almost have a feeling we are going to see it moonshot past the pegged $0.001 by mid November.
That will be interesting :)
As I know, there are 50M of DEC is created monthly as the pool reward and also some DEC reward as board leader in the game. But I don't see them in the DEC created chart?
Is this captured in another way?
Posted Using LeoFinance Beta
I'm not totaly sure about the LP rewards ... I'll guess that they have already been minted and are now just distributed
I appreciate this a lot and thanks for the update.
DEC reaching to 1000-1$ will be good for all of us even for SPS too... it will enable the SPS burn mechanism and that will be good for long term sps too
Thanks for the awesome analysis shared and keep up the good work.
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Thanks, bro! Continue sharing this kind of information that can help us like me.