The Sustainability of Splinterlands (SPS) Token

Splinterlands airdrop has been taking place for 13 days. According to some set of criteria, Splinterlands players are rewarded with the governance token (SPS). You can learn more about the details on the SPS White Paper.

Even though the airdrop looks an ordinary one, it is unique in many aspects. One of the most interesting sides of the airdrop is the length of distribution. The players are receiving the airdrop for 365 days of a whole year.

Besides the length of distribution, the airdrop SPS token can be staked for a juicy APR in game. When the players stake their tokens, they nearly get %1 of their staked tokens as of speaking. Thanks to fee-free nature of Hive blockchain, the players can claim the return of their stake anytime and nearly instantly for free.

Let’s talk about the sustainability of financial status:

Nothing can be owned until it is realized…

Many people adopt this perspective for their crypto investments as crypto is a place where you may become reach in virtual unrealized profit island but the reality hurts once you are not able to realize the earnings. That is, the SPS airdrop provides either a new type of cash flow or a daily trade option depending on your perception.

What happens when someone sees it as a new source of cash flow?

Creating a decent source of income can be challenging in crypto ecosystem. As the return rates may deceive people to put their money into a foolish system that makes people buy their useless token.

However, once a sound way of income source is achieved, it has the potential to change the lives of crypto investors.

In this case, SPS token provides opportunity for people to utilize an incredible APR and claim each digit of your crypted asset any time. By staking the daily airdropped tokens, anyone can trade the daily staking rewards by claiming instantly for free. This scheme will both grow the stake + earnings and let you realize your profit from reasonable price levels.

Factors to be considered:

Is there any better option to sell all the tokens to invest in?
If the price drops, will the APR affected positively or negatively?
In case of a decreasing valuation of the token, can APR and daily earnings sustain the ongoing profitability of the airdrop?

Free to claim anytime thanks to Hive blockchain 💁‍♂️

In many cases, the APR will be fluctuate due to the volatility of the price and the sell pressure on it. IMHO, the strongest narrative of the token is the players itself.

As of speaking, I do not see any better investment to sell all daily-dropped tokens to purchase it. Besides, the compounding mechanism is incredibly profitable. If the price drops, the tokens in the pool is likely to drop (since it requires a lot of tokens to have impact on the price) and the drop in the number of the tokens in the pool will let your tokens own higher pool share and increased APR together. So, in this projection, the price and the APR may catch up with each other to stabilize the profitability.

Projecting the negative scenario, in case of a sharp decrease in price, it is possible to see a wave of FUD for a couple of weeks because of the unstaking period. Thus, the price drops will have an imminent negative impact on the perceptions of people. However, the holder/long-term believers of Splinterlands will equalize the pressure on the token by buying from discounted price and the upcoming utilities of SPS token will push people collect SPS for in-game use cases.

To sum up,
For some people, SPS is a daily profit taking crypto asset. For the others, it is a source of income that works for you. It is early to predict the side that adopts the most profitable ideology. However, that the exponential growth of Splinterlands is a factor that may make you consider your decisions before taking an action. From my perspective, it is like buying a Bitcoin in 2013.

Working Product ✓ Growing Interest ✓ Upcoming Use Cases ✓ Hardworking Team + Community ✓

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