Markets are down and so does the DEC token. Some of the Splinterlands assets hold well in the bear market, the NFTs, but the tokens, SPS, DEC, etc. are following the overall market conditions and are losing valuation.
The DEC token is the reward token for Splinterlands and in theory it is pegged around the dollar with a 1000 to 1 ratio. This is at what price the game accepts the token for card packs. DEC is also calculated towards the SPS airdrop, whoever holds DEC, receives SPS.
The thing is in the last year the DEC token has lost its peg, first on the up side, and was trading 10 times above the peg, while since recently it is below the peg, currently 1000 DEC for 0.6$. In the last period the DEC has been following the SPS token price movements.
DEC is created as a rewards for wining battles, quests, end of season rewards and from burning cards. On the burn side, DEC is usually burnt for some of the in-game purchase like the mini edition of cards, guilds upgrades, skins etc.
Another way DEC is trying to stay around the peg is by expanding the supply when the price is higher then the peg, and contracting it when the prices are lower.
We will be looking at:
- Daily and monthly DEC created
- Daily and monthly DEC burned
- DEC created VS burnt
- DEC created from different pools
- DEC supply
We will be looking at the data from 2021 up until today.
DEC Created
First for the amount of DEC created. Here is the chart for the daily data.
In the first half of 2021 things were quiet, and then in August 2021 a sharp increase in the amount of DEC created. This has happened mostly because of the increase in the price of DEC that has increase a lot in the period and so does the printing.
Afterwards we can see a steady drop in the amount od DEC printed daily, up until recently when it started growing again. There was also a few big lump sums in DEC issued. Not sure is this corelated with the change in the game rewards, but we are seeing now more DEC issued even at lower prices.
The get a better representation here is the monthly chart.
We can notice the trend here as well, with June having a massive bump in the amount of DEC printed compared to the previous months in 2022.
DEC Burned
DEC is burned for in game assets purchases and it is something that need to be taken into consideration. Here is the daily data.
We can see the up trend in July and August 2021, and then almost no burns. This shows that most of the burns happen mainly because of the DICE packs buying’s. After they were sold out there are almost no burns. In the last month there are some burns happening again.
Here is the monthly chart.
June, July and August 2021 are between 80M to 90M burned and a sharp drop since then. In the last month there is a small uptrend and the burns are more then 10M per month.
DEC Created VS Burned
When we put the numbers for created and burnt, we got this.
We can see the DEC expansion starting from August 2021, the downtrend in the last months and up again in the last month.
DEC Supply
Here is the chart for the DEC supply.
This chart probably shows the DEC supply in the best way.
We can see that in 2021, until June the DEC supply was slowly going up in a steady way. Then in June it started decreasing, because of the increased popularity of the game and more DICE buying. After the DICE packs were sold out, combined with the high DEC price, the supply of the DEC token started expanding at a rapid rate. The it has slowed down, but increased again in the last month.
2021 started with around 600M DEC in circulation and ended with 2B. At the moment the DEC supply is around 2.8B, meaning another 800M was added in the first half of 2022.
DEC Price
At the end the chart for the price.
It sure has been a ride :)
All the best
@dalz