[Source](https://support.splinterlands.com/hc/en-us/articles/10058820241684-How-to-Burn-SPS-for-DEC
Splinterlands: Boosting Growth by Incentivizing SPS-to-DEC Conversion
A new proposal is currently up for vote in the Splinterlands community that aims to reduce the conversion fee for swapping SPS to DEC. While this may seem like a small tweak, it could play a crucial role in driving future growth within the ecosystem. Let’s explore why SPS-to-DEC conversion is important, how it’s poised to become one of the most utilized features in the game, and why enhancing the incentives for this conversion can benefit both players and the platform.
Why SPS-to-DEC Conversion Matters
In the early days of Splinterlands, DEC (Dark Energy Crystals) was the primary Play-to-Earn currency. Its supply was controlled by its market demand, with a soft peg of 1,000 DEC = $1 USD. This peg ensured that players were incentivized to buy DEC from the market to purchase in-game items at a discount when DEC traded below the peg.
However, the launch of SPS (Splintershards) and its associated airdrop—proportional to the amount of DEC held—suddenly increased the demand for DEC. At its peak, DEC’s price surged over 15x the peg value. This spike led to a massive over-supply of DEC as emissions soared.
After the SPS airdrop ended, the demand for DEC fell sharply, leaving the ecosystem flooded. To address this, the team curtailed DEC emissions, removed DEC as a Play-to-Earn reward, and introduced a 2% burn fee on all market transactions. Still, the excess DEC remains a long-term issue.
DEC Is Still in Demand
Despite emission controls, DEC remains critical in the ecosystem. It’s still used for:
- Land staking
- Card and SPS rentals
- Player-to-player transactions
- Discounted purchases in the game shop
- Guild upgrades and fees
- DeFi liquidity pairing
- Purchasing potions (as an alternative to Glint)
This ongoing utility ensures there is—and will continue to be—strong demand for DEC, especially as new game features roll out.
SPS-to-DEC Conversion: A Key Utility Going Forward
With DEC emissions now limited, burning SPS becomes the main method for generating DEC. Although DEC can also be obtained by burning cards, their market value is generally higher than their DEC burn value—making SPS burning the more viable option.
Until recently, DEC traded below peg due to leftover ecosystem supply. However, with the Conclave Arcana set presale, available DEC is rapidly depleting. As a result, DEC is returning to peg, and demand for DEC is surging—alongside SPS burning activity. This trend is expected to accelerate, making SPS-to-DEC conversion one of the most frequently used utilities in the game.
What the Proposal Suggests
Currently, burning $1 worth of SPS yields 975 DEC. The new proposal seeks to increase this to 995 DEC, effectively reducing the "conversion fee" and making it more attractive for players to burn SPS for DEC.
While this is a step in the right direction, I believe we can go further. Instead of merely reducing the fee, let’s eliminate it entirely and offer a discount—allowing players to receive 1,005 DEC for every $1 of SPS burned.
Why a Discount Makes Sense
This approach would incentivize SPS burning by removing barriers to entry and encouraging more players to participate. It’s important to note that this won't automatically lead to excessive SPS burning. The choice will always depend on market conditions.
- If DEC trades at $0.95 per 1,000, players will simply buy it from the market.
- But if DEC is at or above the $1 peg, burning SPS becomes the smarter move.
Final Thoughts
Just like AXS defines the market cap of Axie Infinity, SPS represents the market value of Splinterlands. Increased demand for SPS—driven by incentivized conversions—can lead to a stronger token price, greater visibility, and long-term sustainability for the game.
In short, offering more DEC for every dollar of SPS burned is a win-win for both players and the ecosystem. It's time to go beyond just reducing fees—and start rewarding the behavior we want to see.
