Disclaimer: Not a financial advice. Do your own research as this post covers my own opinion about the game.
I pulled this from another user who had an existing 20,000 CROP power. If 20,000 CROP tokens can get you around 0.053 liquid Hive daily, then spending around 86 Hive total (0.0043 Hive per CROP token) would yield around 22.29% APR pegged to Hive (not USD). A lot of new players fail to consider Hive token’s value in relation to CROP token as a deciding factor for their profitability. Who knows how much Hive would be worth months from now?
If you noticed the APY change daily, it's computed based on the USD price of CROP. 0.25% of the Hive reward pool distributed daily meant the total Hive being paid to users diminishes form around 85 Hive down to around 83 Hive in a span of less than 3 days.
There’s also diminishing returns as more players compete for the reward pool each season. The more CROP is circulated out, the lesser the holding rewards is for everyone else as more names step on the 20,000 CROP power milestone. The reward pool distributes 0.25% of its total hive daily and its source of income comes from curation and posting rewards. The majority of its funding came from the ALPHA pack sales which are not unavailable from the game shop. It’s estimated that BETA packs will be available around first or second quarter next year.
Each season the total reward pool decreases by 0.5% from the initial 500,000 CROP token pool last April, 2021. Each season, the value of your shares diminishes by a small fraction from this decrease making each SEED NFT less valuable as you can only use it during its own season then wait another 45 days to use it again. That’s why I consider Land NFTs being more valuable as their use can be throughout all seasons compared to Seeds.
I never bother to mind pegging the value to USD. Too many to factor in when playing a Hive based NFT game. I’m playing the game that just happens to be built on top the Hive blockchain. I don’t plan on losing sleep just to mind whether my game lost its value because the greater picture is this being an entertainment source that happens to give kickbacks. The profitability of the game will depend highly on how much Hive is valued most of the time. People will cash out and sell in the form of Hive and not CROP token anyway.
The value of each DCALPHA packs is a different story. These provide around 2,000 CROP power just by holding. In reference to the image above, if you’re after holding rewards, buying 2,000 CROP tokens is a cheaper alternative than buying a single ALPHA pack. These packs leave room for possible capital appreciation due to their artificial scarcity and speculation that the game will take off sometime in the future.
My own valuation for DCALPHA price would be: Price of CROP in Hive x 2000 = minimum price of DCALPHA + how much value player wants to add for speculated capital appreciation then convert the whole thing to USD. But that’s just me.
Players who missed the boat but want to reap the advantage of holding rewards can just purchase 2,000 CROP tokens instead. Because until the pack is opened or when the pack is sold at a higher value than its original 2$ worth, it’s just a token that has 2,000 CROP power value on its own.
The advantage of just holding CROP tokens to yield those holding rewards is liquidity. If you have NFTs from the game, it may take some time before you can liquidate those assets and even more so during the bear market when you might have to sell at a loss when everyone else wants to get out.
It’s a source of amusement for me when people talk about investing on NFT games like the game they play has any financial obligation to ensure they earn something. Rug pulls can happen, even when you got an official legit looking dev team, a website, a white paper and all the fancy façade to make a project legit.
Play to earn NFT games are just gambling and devs don’t owe players any form of financial security from their gambling as the market decides the value.
If you made it this far reading, thank you for your time.