Currently 70M Dark Energy Crystals are being minted per month as rewards for players who provide liquidity to the various DEC token liquidity pools on third party exchanges. Recently, a community member suggested that instead of minting new DEC tokens for these rewards, we could instead reallocate the current SPS tokens used for LP rewards to also provide rewards for the DEC pools.
A proposal is being put forth to a vote of all staked SPS token holders to decide whether or not to reallocate SPS rewards to liquidity pool providers according to the chart below and remove the new minting of Dark Energy Crystals for these rewards.
| Liquidity Pool | Current SPS | Current DEC | Proposed SPS |
|---|---|---|---|
| Voucher-SWAP.HIVE | 375,000 | - | 300,000 |
| SPS-SWAP.HIVE | 1,500,000 | - | 1,300,000 |
| SPS-ETH | 1,500,000 | - | 1,300,000 |
| SPS-BNB | 1,500,000 | - | 1,300,000 |
| DEC-SWAP.HIVE | - | 20,000,000 | 200,000 |
| SPS-DEC | 750,000 | 10,000,000 | 825,000 |
| DEC-BUSD | - | 20,000,000 | 200,000 |
| DEC-DAI | - | 20,000,000 | 200,000 |
If implemented, this change would mean that players who provide liquidity in the four DEC pools listed above would receive SPS tokens as a reward instead of DEC going forward. The amount is listed in the "Proposed SPS" column. In order to pay out these new SPS rewards without minting more SPS, the rewards for the SPS pools would be decreased as is also shown in the table above.
The goal of this proposal is to help DEC maintain a more stable value near the intended rate of 1000 DEC per $1 USD at which point any additional demand for DEC tokens would provide value to SPS through the burning mechanism.