Things at the Blockchain Gaming Accelerator continue to move at an incredible pace, and as promised we are delivering the updates here on PeakD. Less than 24 hours after announcing our Rising Star partnership, we have already begun a beneficial program for the community. Announcing: the STARBITS Destruction Program... beginning now!
Why would you want to destroy STARBITS?
So basically, while acquiring Rising Star tokens for our Blockchain Gaming Investment Fund, I noticed that it was much cheaper to get STARPRO by bidding on mission promotions with STARBITS than it was to buy them on Hive Engine. This was due to insufficient sell volume compared to the amount our Fund wishes to acquire; the daily drop is a large amount by comparison.
At the same time, I also noticed that it was cheaper to buy booster packs with STARBITS than with HIVE. I therefore concluded that STARBITS are undervalued on the market, the most obvious reason for that being their inflationary nature, which creates sell pressure and scares savvy investors. It's hard to drive the price up when we're all trying to get STARPRO, instead.
This problem was partially remedied by a game update that reduced STARBIT earnings from missions (and thus the effective minting rate). Unfortunately, however, many players are still holding sizeable bags of tokens from before that occurred. Thus we must destroy them by bidding on as many mission promotions as possible, which should earn some STARPRO for our Fund.
How long will the STARBITS Destruction Program last?
A couple users who noticed our aggressive bids on promotions have commented that we should give others a chance. We think what we're doing should drive up the price of STARPRO, anyways, benefiting all long-term players, but we are still sympathetic to such concerns.
The Program will end when the Rising Star Scholarship Program begins. For a period of time, we will cease bidding on promotions entirely altogether, which will give our new players (as well as everybody else) a chance to get some STARPRO. This break period will also cause a reduction in our STARBITS purchases, allowing people a chance to acquire those, as well. Market making will then resume gradually.