In the end you ask for lower burn rates, at the benefit of the DAO, which delays SPS burn and subsequent value increase at the cost of the DAO. Let me explain.
I can see where the idea is coming from, but unless the DEC would be locked in the DAO forever, and then what is the point of it, it is a net zero change. The reality is, the DEC will be used, it will be given to the team, which I have no problem with and then it will slowly be reintroduced into the market when someone pays with credits.
For reference, since the team got the 600m DEC, 370m were given to sellers when people bought with credits. Roughly 150m (guessed based on splintercards numbers, dont hold me on that) of this found its way back to the DAO (the DAO effectively being a seller of promo cards) and while we all hope it will be more through the promo sales later on, you still reintroduce DEC from the DAO back to the market. In itself this is not the worst thing, but I think we can throw the DEC will be locked in the DAO argument out the window.
So basically you delay DEC burn by requiring it to circle longer until burned and you delay the necessity to burn SPS (or cards before that) to get DEC. So you delay the value increase of SPS, which negatively affects all SPS holders a.k.a the DAO. The reality is that every DEC that goes back to the DAO instead of being burned (which already happens with market taxes if I recall correctly) offers the DAO an option. Either keep it locked down or bridge some cost at the expense of SPS value.
So while 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, which I think the DAO doesn't need currently. The "DAO funds and earns" activities should at least pay for themselves in the long run, if not the team and the DAO are screwed anyway. What I don't understand is why the DAO is the only seller in the whole ecosystem who can't decide the selling price.
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.