The Sustainability of Splinterlands (SPS) Token
Splinterlands airdrop has been taking place for 13 days. According to some set of criteria, Splinterlands players are rewarded with the governance token (SPS). You can learn more about the details on the SPS White Paper.
Even though the airdrop looks an ordinary one, it is unique in many aspects. One of the most interesting sides of the airdrop is the length of distribution. The players are receiving the airdrop for 365 days of a whole year.
Besides the length of distribution, the airdrop SPS token can be staked for a juicy APR in game. When the players stake their tokens, they nearly get %1 of their staked tokens as of speaking. Thanks to fee-free nature of Hive blockchain, the players can claim the return of their stake anytime and nearly instantly for free.
Let’s talk about the sustainability of financial status:
Nothing can be owned until it is realized…
Many people adopt this perspective for their crypto investments as crypto is a place where you may become reach in virtual unrealized profit island but the reality hurts once you are not able to realize the earnings. That is, the SPS airdrop provides either a new type of cash flow or a daily trade option depending on your perception.
What happens when someone sees it as a new source of cash flow?
Creating a decent source of income can be challenging in crypto ecosystem. As the return rates may deceive people to put their money into a foolish system that makes people buy their useless token.
However, once a sound way of income source is achieved, it has the potential to change the lives of crypto investors.
In this case, SPS token provides opportunity for people to utilize an incredible APR and claim each digit of your crypted asset any time. By staking the daily airdropped tokens, anyone can trade the daily staking rewards by claiming instantly for free. This scheme will both grow the stake + earnings and let you realize your profit from reasonable price levels.
Factors to be considered:
- Is there any better option to sell all the tokens to invest in?
- If the price drops, will the APR affected positively or negatively?
- In case of a decreasing valuation of the token, can APR and daily earnings sustain the ongoing profitability of the airdrop?
Free to claim anytime thanks to Hive blockchain 💁♂️
In many cases, the APR will be fluctuate due to the volatility of the price and the sell pressure on it. IMHO, the strongest narrative of the token is the players itself.
As of speaking, I do not see any better investment to sell all daily-dropped tokens to purchase it. Besides, the compounding mechanism is incredibly profitable.
If the price drops, the tokens in the pool is likely to drop (since it requires a lot of tokens to have impact on the price) and the drop in the number of the tokens in the pool will let your tokens own higher pool share and increased APR together. So, in this projection, the price and the APR may catch up with each other to stabilize the profitability.
Projecting the negative scenario, in case of a sharp decrease in price, it is possible to see a wave of FUD for a couple of weeks because of the unstaking period. Thus, the price drops will have an imminent negative impact on the perceptions of people. However, the holder/long-term believers of Splinterlands will equalize the pressure on the token by buying from discounted price and the upcoming utilities of SPS token will push people collect SPS for in-game use cases.
For some people, SPS is a daily profit taking crypto asset. For the others, it is a source of income that works for you. It is early to predict the side that adopts the most profitable ideology. However, that the exponential growth of Splinterlands is a factor that may make you consider your decisions before taking an action. From my perspective, it is like buying a Bitcoin in 2013.
Working Product ✓
Growing Interest ✓
Upcoming Use Cases ✓
Hardworking Team + Community ✓
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I was going to make a post earlier, but I thought it was too short to be a post and it will be better as a tweet, but the tweet is still in my draft and I’m not sure when or if I will post it. Anyway, what I wanted to say in the post is that SPS airdrop will go down in history as one of the most memorable airdrops ever, at least as far as GameFi is concerned. Everybody holding SPS tokens are frontliners in steering the governance of the entire Splinterlands economy, many don’t realize how huge it is. Getting SPS now is like getting into Splinterlands early, till date people are wishing they did and those who did remain ultimately grateful. It is happening again and we are all witnessing it. But this is only my opinion.
I totally agree!!!
Very well said dear.
Holding the governance token will bring many opportunities for us when the token start having more use cases. For now, weak hands are (sadly though) giving their tokens for discounted prices.
%300+ APR is huge for such a popular and fun #Play2Earn game though.
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Interesting post... I have started with Splinterlands and Hive blockchain like two weeks ago and i am now at the moment that i am getting SPS from the daily airdrop. For the moment i am getting low numbers as i have just a bit over 18 SPS, but my strategy is to stack all of them (obvious this is not a financial advise).
If the game will keep the same growth, a year from now i think that the ones like me who stake all the SPS will have a big smile on their face, and on the end of the day it's just a game... we make more money playing that people going 12 hours to work!
Honest to be i don't see a negative scenario for the SPS... for sure no negative scenario for the following years.
Great post and looking forward to read more interesting ones!
Thank you mate ^^
It is so great to see someone exploring Hive ecosystem thanks to Splinterlands. The governance token will have such great utilities that these prices will be hilarious to sell off 💁♂️
Regardless of the price of the token, I'm delighted by being one of the governors of the game via SPS token :)
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Nice post. I have my doubts that the price will hold with so much $$$ being distributed... people are going to be taking profits and I am not sure the pockets are deep enough to continually support the price. I have certainly been wrong before... I am staking and selling as they come in to hedge my bets.
Many thanks for your appreciation ^^
I believe there are 2 major and 1 minor factors that may prevent the token from losing more value.
First of all, GameFi & Play2Earn hype should not end very soon as they are the fuel of this hype. Besides, the exchange listing may make the governance token more visible and reachable. Listings are still valid narratives.
For minor factor, I believe people do not know what to do with (or what will do) with SPS token. They are used to upgrading items, exchanging for something in-game or selling directly on markets. With more in-game use cases, there will be a need for SPS token. When happens, the SPS token is likely to test higher levels as the counterparties are still skyrocketing, too 😌
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I am very curious about the sustainability of the SPS token. I believe at this time the value is stablizing and hopefully will not go down any more. I will be holding and staking to increase my holding as much as possible as the value should increase through the 365 airdrop time period.
Even if it goes down for a while, it will eventually start rising when new use cases are declared. I have no problem with short term price volatility. For long term, I'm quite bullish 😌
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I staked already 1000 SPS. I also sold some of them, because as the token gets more available, I expect a drop in it's price. So that I can sell now when it is high, and buy it later when I expect it to be lower.
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The trades are more profitable in general. I was planning to follow the same way but I thought that there may not be so much difference with this high APR rate. As I was on vacation, I fully staked and enjoyed APR ^^
I may start trading like you very soon :)
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Since I first heard the idea of an airdrop for a year I thought this is the best game on the blockchain, plus it has an integrated defi, what game does that make it?
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I have not seen any game with 365 days of airdrop. Imho, the governance token is still a hidden gem with incredible potential 🤸🏽♂️
I just want my Lord Of Darkness to be worth $10k one day. Is that too much to ask?
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Take a look at Axies and foresee the future mate :))
Your explanation on SPS was helpful, now i understand it better