Mixed feeling from community due to SPS DAO Proposal

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5 months ago - 2 minutes read

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Two proposals were recently thrown into the fray for voting in Splinterlands. One proposal involved Peakmonsters adding a dashboard that enables more interaction with the community and that one is going on course to be passed without any issue.

The second proposal is one that has sparked some level of controversy, if you may, as it involves adjusting pertinent staking parameters of the SPS.DAO account. This particular proposal could be more consequential for the future of the game, and as such it, it has been met with a lot of scrutiny.

The Peakmonsters proposal seems to be a no brainer decision and on top of that, the change it proposes has sparse consequence on general proceedings in Splinterlands ecosystem. However, it is worth noting that most Splinterlands investors use Peakmonsters, so adding a dashboard for community proposals makes perfect sense and that is why the proposal has received a lot of support from the community.

The SPS.DAO proposal, on the other hand, will lead to an astonishing 28 million SPS staked, if approved. That amount of SPS staked could lead to far reaching consequences for the game.

My final thoughts

Staking 28 million SPS tokens is not a small feat, particularly from a community owned account. The positives include increased revenue for the the SPS.DAO account that could be used to improve the game but the domino effect of the move could be tedious.

For starters, will the SPS.DAO account be allowed to vote for proposals? If so, that does sound like it could affect the decentralisation of the community.

Yes, staking 28 million SPS invariably reduces the available supply of SPS but it in turn increases the inflation rate of SPS. This will then have a knock on effect on all players.

28 Million SPS staked will dip into the mutual inflation pool that all SPS stakers earn from and this in turn will reduce the APR for staking SPS tokens. Yes, the SPS.DAO account belongs to the community but in some way, it kind of seems like the DAO will be taking out of your already depleted regular earning.

All I'm saying is that while the proposal has potential to have a positive effect on the community, it comes with some level of risk that I don't think the community should be taking right now. The SPs DAO isn't broken right now, so I reckon we should leave it alone.

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