The in-game trade hub of Splinterlands might be one of the undervalued sides of the game. The new economic model of the game has switched from the use of Hive Engine to initiating transactions between two assets in Splinterlands.
The best example of that shift might be the trades of Voucher tokens. The token is still available in Hive Engine and anyone can buy and transfer to their gaming account but the new Voucher tokens earned from SPS staking and Validator Node Licenses cannot be sent to Hive Engine.
The new system requires the use of Dark Energy Crystals for your trades in the Trade Hub. So, the route of the transactions is no longer a direct withdrawal but a swap from X asset to DEC to take out of the game's hub.
Some may criticize the new mechanism, but its benefits may exceed the limitations the players encounter. DEC has been the primary currency of the game, whereas SPS is the governance token. So, similar to the way fiat currencies operate, the trades have to be routed by using DEC to add it some intrinsic value.
DEC, $1 Peg and Burning SPS
If you visit Splintercards, you will see the section that shows how much DEC is in circulation and the amount of DEC minted by burning SPS.
The more DEC is burned, the more SPS owns a genuine buying pressure on itself. This is a sustainable operation system when considering all parts of it. Players use DEC, DEC keeps the peg (1000 DEC = $1), and SPS is burned by minting DEC again.
Just have a look at the graphic and see the impact of SPS burns on the price
The SPS burning mechanism will eventually show its impact on the price of SPS. The change in the value can be a facilitator factor for several aspects.
Valuable SPS can bring new players. This is the primary source of power for almost all blockchain - based games. Besides, the higher value of SPS can trigger the snowball impact for the cards, Validator Node Licenses, lands and other assets of Splinterlands.
I have huge hopes for the future of Splinterlands, considering the improvements in the game and the sustainable solutions the team brings. Yes, the bear market hits the Play2Earn projects hard, but the experience of the team (since 2018) can be the strongest side of ours for the upcoming seasons, the GameFi trend, and the long term.
What do you think about the role of DEC in the new system and the value of SPS?
Share your thoughts below 👇
Hive On ✌️
Posted Using INLEO
