SPS Governance Proposal - Adjust the efficiency of rented and delegated SPS

@meredorn Β· 2025-10-18 11:12 Β· Splinterlands

Transaction ID: d5ddcca5f01574e68e6b06d2961dde01b4adde63

Hey everyone πŸ‘‹ After all the great feedback and debate, this is the final and official version of the rented/delegated SPS efficiency that is now submitted for DAO vote. It incorporates the community’s best ideas and represents a balanced, practical solution aimed at rebalancing incentives between renting and staking, without hurting accessibility or market stability.

🎯 Goal

Gradually reduce the efficiency of rented and delegated SPS in reward calculations β€” to encourage staking, reduce sell pressure, and stabilize SPS value over time.

This is a lightweight, transparent, and predictable system designed to improve token health long-term.

βš™οΈ Why It’s Needed

SPS rentals are now extremely cheap (often 0.001 DEC).

Many players rent instead of owning, generating constant sell pressure.

Rewards are mostly extracted and sold rather than staked or held.

The result: weak price support and less alignment between players and the SPS ecosystem.

We don’t need to kill rentals β€” just rebalance them gradually so ownership and staking become the natural goal again.

πŸ’‘ Core Mechanism

1️⃣ Delegation carve-out for new players β†’ Delegated SPS keeps 100% efficiency for accounts under 3 months old, ensuring smooth onboarding.

2️⃣ Immediate 20% Decay β†’ On implementation, all rented & delegated SPS start at 80% efficiency β€” a quick but balanced correction.

3️⃣ Unified tapering system β†’ After that, both rented & delegated SPS decay together, ensuring fairness and avoiding loopholes.

4️⃣ 1% Weekly Decay: After implementation, the efficiency of rented and delegated SPS will decrease by 1% per week, calculated on the initial 80% efficiency, as per the tapering principle (i.e., the decay applies to the effective value, not to the full 100%).

For example:

Week 1 β†’ 80.00% efficiency

Week 2 β†’ 79.20% efficiency

Week 3 β†’ 78.41% efficiency

Week 4 β†’ 77.62% efficiency

Week 10 β†’ 72.27% efficiency

Week 25 β†’ 61.67% efficiencyS

5️⃣ Efficiency Floor at 50% β†’ Efficiency stops decaying once it reaches 50%, keeping rentals viable but less competitive than staking.

πŸ“ˆ Expected Outcomes

βœ… Lower sell pressure β€” less efficient farming = fewer SPS sold. βœ… Higher staking incentives β€” players shift from renting to owning. βœ… Smooth transition β€” no market shock, gradual and predictable. βœ… Fairness for new holders β€” new players keep full efficiency early on. βœ… DAO treasury benefit β€” supports long-term SPS circulation and value.

πŸ› οΈ Implementation

The system acts as a global efficiency multiplier on rewards β€” technically light and automated. The DAO can later adjust the rate or cap if needed.

That said, the Splinterlands team will still review technical feasibility and dev impact before implementation, to make sure this system is practical and not overly burdensome to build.

🧭 Conclusion

This proposal represents a measured evolution of the SPS economy β€” not a shock or a punishment, but a path forward shaped by the community itself. Instead of sudden bans or drastic price floors, it offers a steady and predictable transition that rewards those who believe in the long-term vision of Splinterlands.

Starting with a 20% initial adjustment and a 1% weekly taper, players naturally move from renting to staking, strengthening the ecosystem one step at a time. The result: a healthier, more resilient SPS economy β€” built on ownership, strategy, and shared commitment to the future of the game.

#spsproposal #sps #splinterlands #web3 #crypto-gaming #renting #sustainability #buildtogether
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