PKM token was announced over 3 years ago So was our Premium level tools and so was our liquidity pool and revenue sharing with that pool
CHANGES PREVIEW
- We are (for the foreseeable future) giving everyone premium ... For Free.
- We are switching to using revenue to buy PKM from the market instead of putting it into LP rewards
- We are dramatically increasing our position in the Liquidity pool for PKM:SPS
PREMIUM IS FREE
All our users will be given Premium for free. This will start some time next week.
There are a few reasons for this. Much of the premium tools we started with were based on daily rental tools and without them we were either going to cut the cost of premium in half but decided instead to remove the fee entirely for the time being. We of course want to see the Splinterlands ecosystem do well and recognize there are many tools we are the only website to have ever made them for the community and our hope is that giving more people access helps the ecosystem more. In particular there were a lot of requests from users who wanted to use the survival mode tools however premium was perhaps too expensive a cost to warrant the cost of premium entirely. As a reminder PKM spent on Premium wasn't something that benefited our company directly... it's primary benefit was the PKM token itself, that money benefited the token and using our site to buy got users PKM. '
Finally and perhaps most importantly we decided charging a PKM fee was not enough traction to really be worth it compared to some other things we could do... we are describing a couple of those things below.
There is always a possibility that there is some future premium feature that would warrant bringing back the cost... but for now Premium is Free.
REVENUE SHARE
We have made the decision after 3+ years of sharing our revenue with LP holders of PKM:SPS that instead we will use that revenue to BUY pkm from the market. We will either burn that PKM or put it back into the liquidity pool. This is only made possible because of the next subject... we feel like we can handle the LP needs for PKM:SPS.
This means there should be upwards of 3-4m less PKM being distributed/inflated each year. The only real way to get it now is buy or use the PeakMonsters market.
Purchases of PKM will happen pretty frequently perhaps even a couple times a month. With some/most of that being burned there is a chance for deflationary PKM (obviously depends on how much gets burned vs gets put into the LP)
INCREASE THE LP
We are moving over 500k SPS into the Liquidity pool (much has been already added) together with some PKM that has been added to that account for this purpose. A large chunk will be added tomorrow to pkm:sps
We suspect most people will keep liquidity in while the reward pool is still active for another 10 days.
Several other teammate related accounts plan to stay in the LP for the time being as well. As a reminder LP holders can earn fees via Hive-Engine when LP is used.
We understand some people may not stay in the Liquidity pool under these new situations and we want to say we understand. And we know you will make your own financial decisions based off of us buying up PKM and no more inflations to Liquidity Providers.
Around July 25th is when the LP rewards for pkm:sps stop so there are still several more days of that 40% apr. We're proud to say that for over 3 years we provided one of the most consistent and consistently great apr's in hive-engine. It was almost always over 40% apr. W
Happy to hear your responses and thoughts in the comments. We don't know what the changes to PKM will bring and have no financial advice for you... in fact we are curious about what you think will happen.