A Look At The DEC Inflation | The Splinterlands Reward Token
Splinterlands continues its run, ranking as the number one app in all crypto in the last weeks, according to dappradar.
The Splinterlands DEC token has been a challenge to track. There are quite a lot of mechanics, reward pools and even more ways to burn the token.
Just to mention a few ways DEC is being created:
- reward pool for wining battles
- reward pool for quests
- reward pool for liquidity providers
- DEC created from burning cards
On the burn side, DEC is usually burnt for some of the in-game purchase like the dice edition of cards, guilds upgrades, skins etc. Not sure is there some DEC burning for the land.
Plus, DEC lives on multiple chains, Hive, Ethereum, BSC, plus the in game DEC hold by players.
The price of the DEC is loosely pegged for the 1000 DEC per 1$, but we are seeing now that it has lost its peg on the up side, going as high as x10 of its peg.
Method. For the data presented here I have been using the issued and burnt DEC on Hive Engine, and additionally double check it with the api data in the last few weeks. The queries are on the bottom of the post.
We will be looking at:
- Daily and monthly DEC created
- Daily and monthly DEC burned
- DEC created VS burnt
- DEC created from different pools
- DEC supply
We will be looking at the data only for 2021, from January to October 4th.
First for the amount of DEC created. Here is the chart for the daily data.
Well, this is interesting. The daily amount of DEC created has went up significantly in the second half of August 2021. This is because of the increase of the DEC price but even more because of the sellout of the DICE packs mini edition.
The DEC token increased in value even earlier, but because of the buying of the DICE, where all DEC is burned, the increased inflation was countered until the edition was sold out. Since then, the inflation is quite high compared to before.
The get a better representation here is the monthly chart.
Until July, the monthly inflation was around 27M, and in August there were 370M new DEC tokens added, while in September a 316M.
DEC is not like the standard crypto tokens. A lot of it is getting burned for in game assets purchases and it is something that need to be taken into consideration. Here is the daily data.
We can see the up trend in July and August, and then almost no burns. This shows that most of the burns happen mainly because of the DICE packs buying’s. After they were sold out there are almost no burns.
Here is the monthly chart.
June, July and August are between 80M to 90M burned in the month and September is down to 1.6M.
There should be a new mini edition, probably at the end of October, or later, that will start burning more DEC.
DEC Created VS Burned
When we put the numbers for created and burnt, we got this.
We can see the DEC expansion in the last two months here as well.
The log chart for created vs burnt looks like this.
The yellow line is burnt, and the blue DEC created.
Here is the chart for the DEC supply in 2021.
This chart probably shows the DEC supply in the best way.
We can see that over 2021, until June the DEC supply was slowly going up in a steady way. Then in June it started decreasing, because of the increased popularity of the game and more DICE buying. After the DICE packs were sold out, combined with the high DEC price, the supply of the DEC token started expanding at a rapid rate.
At the start of 2021, the supply of DEC was around 600M, and now it is around 1.2B basically doubling. In the last two months more than 300M DEC was added, and October will probably end up in a similar manner. Will see how things go after this, and after the introduction of a new packs mini edition that is specialized in burning DEC.
At the end a note that holding DEC gives users a SPS airdrop, so the price of DEC is a function from the SPS price, and the DEC supply. The DEC supply has doubled in the last two months, but the overall growth of the game has accumulated this with no issues and the tooken is still trading at x10 from its peg.
All the best
Posted Using LeoFinance Beta