c1f268aab53c0370df1946863f70b7e6c3f07b7b
I would like to put forth a proposal to the community of staked SPS holders to change the pricing of Riftwatchers booster packs to be a fixed amount of 5000 DEC tokens per pack instead of the current $5 USD worth of SPS tokens. All DEC tokens spent on purchasing these packs would go to the DAO, and the bonus packs and VOUCHER token requirements would not be changed.
The proposal aims to send all of the DEC to the DAO because the DAO is the entity that is offering these packs for sale, and as such it should receive the proceeds. If the staked SPS token holders would prefer that the DEC be burned, that is fine, but I believe that it should be a separate proposal. This proposal is intended to focus solely on repricing the packs.
The reasoning behind this proposed change is to provide more value to DEC (which will in turn provide more value to SPS via the burning mechanism) and provide more revenue for the DAO by driving more Riftwatchers booster pack sales.
The tokenomics of the SPS token are entirely designed around the concept of in-game products being priced in DEC tokens, and then allowing SPS to be burned to mint DEC. The problem right now, as I see it, is that there simply isn't enough demand for the token with the current products that are priced in it. While I don't expect that this one change will singlehandedly increase demand for DEC enough to kick off the SPS burning mechanism, it will certainly help to move things in the right direction and I don't see any real downside to it. The more we can do - the more products we can offer for DEC - the higher the chance we will have of turning the economy around.
Pricing products in volatile currencies like SPS is very bad for sales and I believe that it is slowing down sales of Riftwatchers packs, which is detrimental to the DAO and the ecosystem as a whole. Many people do not want to spend tokens that they expect may be worth far more in the future, and for good reason.
That is what is so amazing about the system that has been designed here whereby products can be sold for a fixed amount of a relatively stable token - DEC - which people aren't as hesitant to spend because there is little potential for price appreciation, while still providing value back to the SPS token via the burning mechanism.
It is literally a "best of both worlds" solution, in my opinion, but it doesn't work unless the products are actually priced in fixed amounts of DEC which is why I am urging the community to approve this proposal as well as to continue to push for more ways to create demand for DEC in the future.