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RE: SPS Governance Proposal - Generating Income Streams for the DAO by Adjusting DEC Burning Allocation

in #spsproposal4 days ago

Thanks for your insightful feedback!

You are right about that the DEC would be given to the team at some point. But the DAO could decide at which point that would be. So it could lead to "delay DEC burn by requiring it to circle longer", but not necessarily. The DAO could HODL this DEC until the DEC overhang in the market is gone. So it all depends on the DAOs decision how to use these funds.

I think the general argument that burning SPS will automatically lead to SPS price increase works only if there is enough SPS demand in the market.
If an asset is just scared, but nobody wants it, it's not vauable.

The same goes for DEC. If we just burn all DEC, but nobody wants to use it to buy Splinterlands products, DEC would be completely worthless.

Of course the Flywheel could work how it's promoted, but I think that supply and demand is almost never factored in into the discussion.

You said: "I definitely agree that the DAO needs established income streams as soon as SPS rewards run out, I would argue that giving DEC to the DAO instead of burning is not that, it is just flexibility"
Yes, totally! I think that this flexibility could help the DAO long term.

Thanks again for your detailed response. Even if we see some things differently, I think we both want Splinterlands to survive.