What is the actual Market Cap of Splintershards?
Hello HODLers and Summoners,
Looking at crypto markets, it is sometimes nice and smart to just sit back and do some cold hearted calculations.
So I decided to look at the diluted SPS Marketcap. As I am a summoner and an investor in Splinterlands, I am affraid to discover anything negative :D.
I digged into the SplinterShards (SPS) Whitepaper
New SPS tokens will initially be added to the various reward pools at a rate of 37,500,000 tokens per month and will decrease uniformly across all reward pools at a rate of 1% per month, meaning that after one year the monthly contribution rate to the reward pools will drop to 33,239,400 and after 5 years it will have dropped to 20,518,400 SPS per month. These rewards will end after 65 months and at that point no more SPS tokens will be created.
65 months means that the airdrop will be going on for 5 years and 5 months before it finishes. That's a lot !
If we take an average over the next five year of 1mn $SPS released per day.
We get 1 000 000 * 30 Days * 12 (months) * 5.4 years = 19 400 000 000
Total supply will be c.19.44bn $SPS Tokens???
WRONG, I misunderstood. Bad Lemon, Bad Lemon!
Well, the last sentence is quite confusing and thanks to some Hiveans, I understood that they meant the last airdrop release will be in 65 months but some will stop way before as indicated in the figure below.
What would be the theorical diluted $SPS Market Cap?
Current SPS price is at c.$0.37
Diluted SPS Market Cap = 3 000 000 000 * 0.37
Diluted SPS Market Cap = 1 111 0000 000
So the conclusion is that Splinterlands Governance Token will have a diluted marketcap of c.$1.11bn !
You make what you want from this information hehe.
Sitting between Ontology and ICON
If everything stayed constant in the crypto worl, which it never does, Splintershards would barely making it to the Top 100 !
HIVE has only a Market Cap of c.273mn DESPITE the current Bullrun it just had !
Well, either SPS is overvalued or HIVE is heavily undervalued ;)**
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https://twitter.com/VinnieLemon/status/1434581512175947783
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very good ... currently SPLINTERLANDS is the best blockchain based game. He is currently unrivaled
Max supply is caped at 3B tokens. You can check this in the white paper.
Yup, I just edited, thanks for the comment. I did my calculations on a quote that I feel is kind of mistaking.
Should have looked at the table to understand they refer to the last airdrop type not the overall airdrop.
Thanks a lot again.
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NP
According to the whitepaper, the total supply is fixed at 3 billion SPS. The airdrop ends after 12 months, the inflation stops after 65 months.
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I just edited the post, you are right. I read too fast from this quote. It is quite unclear to be honest but I should have looked at the table that I now added, it is way clearer.
Thanks for the heads up. I appreciate it.
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I think the airdrop will only be lasting a year though?
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It seems you are right but the quote taken from the WP is very ambiguous.
They mean that last rewards will end in 65 months (Fondation, team, play to earn...).
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It's world's biggest crypto game. Seems fair :)
!PIZZA
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@vlemon! I sent you a slice of $PIZZA on behalf of @d-zero.
Did you know PIZZA team has a curation trail with 29 followers? (3/10)