This morning I saw a message on Splinterlands' discord from Matt mentioning a vote through Hive on two different comments, where those interested should express their opinion whether or not DEC-B should be soul-bound or tradable.
In two separate posts (1, 2) I expressed my concern about DEC-B being proposed as tradable.
I was not the only one with that concern. Now, Matt has put it to a vote. Tradable or not?
The vote is currently leaning seriously toward soul-bound, which I believe is a great thing. That was my major objection to the proposal that made me indecisive. If the proposal will be changed to make DEC-B soul-bound, I will most likely vote yes to the proposal.
I'd like to alleviate some of the objections that were voiced vehemently against DEC-B, from my own perspective.
Not Another Token
This was one of the most often criticisms I've seen regarding DEC-B. People don't want another token, they want the team to focus on the core game features.
While I can't disagree with the second part, not even a bit, as a soul-bound token, I see DEC-B with different eyes.
I don't see it as a separate token, I see it as a separate DEC balance that is locked for most use cases.
Why does the game need this "locking" mechanism? To have a more predictable flux of DEC in the game economy.
Why would the players need it? It is a quality-of-life tool that helps plan ahead and it has an incentive. Let's talk about the incentive part a bit because that is something else some people don't like.
20% Discount When Using DEC-B
There were complaints that creates inflation. In my opinion, the inflation DEC-B can produce is only an issue if DEC-B is tradable.
Otherwise, the 20% inflation people are talking about comes into the game economy slowly, as DEC-B is being effectively used to upgrade buildings or buy stuff that can be purchased with DEC-B. This may be a point where criticism is still valid: we don't really know which will be the use cases for DEC-B. But we can guesstimate some of them for sure.
And let's look at things from a different perspective. If people don't have the incentive to burn DEC for DEC-B, they might compete with the rest of the liquidity providers in pools.
If they are looking to increase their DEC holdings, they will sell their rewards (SPS) to grow their positions. Thus, selling pressure on SPS.
If they instead are drawn toward the DEC-B option (and there's no guarantee all will go that route or with what percentage of their holdings), that's less competition on the liquidity pools, and potentially a higher APR for those remaining.
VOUCHER as an Option to Burn for DEC-B
That's another option that has been criticized because it creates DEC inflation.
The argument is correct. However, again, with DEC-B soul-bound the problem would be much more attenuated and additional inflation gets added over time.
One more thing. The additional inflation NEVER comes out as new DEC if DEC-B will be soul-bound. It will just decrease the amount of DEC needed to burn if this proposal passes. But people should realize that no DEC has been burned for land yet. And I imagine it'll amount to A LOT. And the burns will start way before the full gameplay for land will arrive.
The amount of DEC in circulation will invariably reduce as the faucets for it have been reduced to a minimum and the sinks remain in place.
This is of course my opinion, and I'm sure there are people who disagree with it. As there are enough who agree with it too.
In the end, I'll do what I believe makes more sense, both for the game and for myself. And I will vote yes if DEC-B becomes soul-bound.