SPS Governance Proposal - Begin SPS Reward Payouts for Tower Defense Pack Holders

In this earlier SPS proposal (@sps.dao/sps-governance-proposal-reallocate-sps-from-team-pool-to-td-reward-pool) the community voted to reallocate 1M SPS per month from the team pool to a reward pool for the new tower defense game that is currently being developed.

It is now being put to a vote of the staked SPS token holders if that reward pool should begin being paid out immediately to players who have purchased tower defense game packs and hold them in their account rather than waiting until the game launches.

If approved, this proposal would take the 1M SPS per month (decreasing at a rate of 1% / month for 65 months) in rewards allocated to the tower defense game and begin distributing them equally per Splinterlands Tower Defense pack that is held in-game on a daily basis. Pack tokens held on external platforms such as WAX or Hive Engine will not count for these distributions. This means that the more packs that are held on these external platforms, the more SPS will be distributed to each pack held in game.

The SPS rewards will be staked directly to players’ accounts and will be claimable via the same method as ranked battle rewards and node license rewards.

The goal of this proposal would be to incentivize the sale of tower defense packs which would take DEC tokens out of circulation as the Splinterlands team commits to not selling its DEC token holdings. Taking significant amounts of DEC out of circulation would presumably push the third party market price higher and bring the system closer to the point where burning of SPS tokens to mint DEC would be profitable, thereby providing additional demand and value to the SPS token.

Please note that while TD packs are also purchasable with Credits, the vast majority of purchases will be with DEC as it is significantly cheaper based on current third-party market pricing.

Finally, once the tower defense game is released, a new proposal will likely be put forth to stop these direct SPS rewards to pack holders and instead give out the SPS based on a different set of mechanics specific to the economics of this new game. Ultimately it is up to the SPS token holders to decide how or if SPS tokens will be distributed to tower defense players / asset holders (or to anything else for that matter) going forward.

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