Sources of inflation for a token are expenses whose costs are shared by all asset holders in the ecosystem. From that perspective, it is of the utmost importance to ensure that all sources of inflation are providing enough value back to the ecosystem to make up for their costs.
The DEC inflation pool for Uniswap liquidity providers was first initiated in late 2020 in order to encourage players to provide liquidity for the token, but now that much of the token trading volume has moved to PancakeSwap on BSC or Diesel Pools on Hive Engine, plus the addition of the SPS airdrop rewards, this 100M DEC per year inflation pool is no longer providing value back to the asset holders.
As a result, the DEC payouts for liquidity providers in the ETH-DEC and DAI-DEC pools are scheduled to end on Uniswap on Thursday, March 17th, 2022. At that time these tokens will be reallocated to the ranked battle reward pool.
One of our top priorities from a game economy standpoint is to increase the rewards for ranked battles in Splinterlands, especially in the higher leagues, to add additional incentive for players to buy and rent cards in order to move up. This change is the first of many that we plan to make towards that goal, and it allows us to take this pool of 100M DEC per year that is currently providing little to no value and redirect it so that it adds direct value to Splinterlands card holders and players.
Please keep in mind that this is only for DEC rewards and the daily SPS airdrop rewards for Uniswap liquidity providers will not be changed. Additionally, players will have 30 days from the date the rewards end to claim any unclaimed DEC rewards from Uniswap liquidity positions, after that point the option to claim the rewards will be removed from the game website and any unclaimed rewards will be forfeited.
Stay tuned for more updates from the Splinterlands!
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NOTE: All rewards from this post will be burned.