The Current SPS Landscape
It’s no secret that there is an oversupply of SPS in the market. The daily rewards from various sources continue to flood the ecosystem, leaving more supply than demand can currently absorb. Even as someone who has accumulated a substantial amount of SPS, I no longer actively strive to gain more—it just accumulates passively. This excess has diluted its value, making it less appealing to stake or delegate.
Why Stop Delegating?
Delegating SPS on the market has provided a steady flow of DEC rewards every couple of days. This has been one of the more enjoyable aspects of staking and delegating SPS. However, with the current low prices, the effort doesn’t feel worthwhile. By pausing my delegations, I’m essentially signaling my belief that holding and staking SPS will be more rewarding in the long term.
The saddest part of this decision is losing access to that regular DEC income. DEC, while also devalued, has been a critical component of my strategy for land and other assets within the ecosystem. But I’m confident that things will balance out as the community adjusts and demand rises again.
The Flywheel and Future Outlook
One of the reasons I’m optimistic about SPS’s future is the potential for the DEC flywheel to restart. If DEC’s peg can be reestablished and demand for it rises, the utility of SPS will naturally follow. A robust DEC economy could reignite interest in staking SPS for governance and other benefits, creating a more balanced supply-demand dynamic.
I’m also certain that I’m not the only long-term SPS holder considering these moves. As more people make similar decisions, the oversupply of SPS on the market could ease, creating conditions for a healthier price point. It’s the classic economic cycle: supply and demand finding their equilibrium.
For now, I’ll watch and wait. The Splinterlands ecosystem has seen its fair share of ups and downs, and I’m confident this is just another phase in its evolution. By halting my delegations, I’m positioning myself for what I believe will be a stronger, more valuable SPS in the future. It’s a tough call, but sometimes stepping back is the best way to move forward.
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