RE: SPS Governance Proposal - Hire SMC To Create a New Mini-Set
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I voted for it and I like the idea in general, but the whole pay different prices in DEC, SPS and USDC is really bad in my opinion to say it in a neutral tone.
Realistically nobody will pay in USDC unless they don't know better, same applies to DEC. I don't know about you guys, but I am not a fan of pricing things differently to create the option for the customer to screw themselves. This is just bad practice, plain and simple. I understand that this is primarily meant to raise SPS for the DAO, but you can do this differently.
Suggested change:
Instead of having the various price tags, just price it at 5k DEC, although I think it would be better to stay in line with the CA pricing. I assume this was the planned price anyway, since paying in SPS is such a heavy discount (which would make it even worse that you punish players who pay in other currencies than SPS). All the DEC (or credits) spent are simply sent to the DAO, who will just swap to SPS regularly. Leave the option to pay with SPS directly in there for all I care, but make sure the price is +/- same.
Result:
- Same, fair price, no matter the currency for customers.
- The DAO still raises SPS.
- DEC price will be affected the same as with the current model, people just use the cheaper DEC to buy the packs if it is a better deal than paying with their SPS
- You might even get DEC closer to peg this way as SPS and DEC demand rises in tandem (as it was always meant to be according to your own design), while with your suggested pricing it would require SPS to significantly increase in value only to decline as nothing is burned afterwards because of cheap DEC
Ultimately this suggested change will make it fair for customers and more in accordance to the design and flywheel. It simply shouldn't be up to the customer to figure out what currency the DAO wants by calculating and swapping around to get a discount. It could even be seen as paying a fee for paying in the wrong currency. Seriously, this is so bad. If the DAO wants SPS it can swap like everyone else. Same applies for if it wants stable coins.
There is no difference in price:
Thus:
At Peg... in DEC it will be $5 or 5,000 DEC
At $.01425 per $SPS it will be $5 of SPS
At $1 per USDC or 1,000 Credits it will be $5 per Stable
The only discounts being offered... are at CURRENT market prices...
LET THE FOMO BEGIN!!!!!!
Until it hits 0.1425 cent you simply overpay when you use any other form of currency. By a lot. Imagine you are a new player, wanting to buy a pack, you have most likely credits because you don't bother with this crypto stuff and hive engine. Now you pay 5 USDC for a pack instead of 3 or 4 because you didn't do the swap first? This is bad.
And assuming it hits 0.1425 cents, what then? Then you have to burn SPS for DEC again unless you want to pay more using SPS. From that point on the DAO gets DEC. Assuming the DAO still wants SPS it has to swap anyway at that point. If it wants stable coins, why not give the same discount for stable coins?
It is just an artificial pump of SPS in the short term, moving all value there at the cost of the rest of the ecosystem. You just push SPS at the cost of DEC and then, after the sale of this mini-set is over, what then? Then its again the climb to peg for DEC during which there is almost no demand for SPS, while all the SPS taken into the DAO will be slowly flowing out as rewards. What direction will SPS go then? Unless you price every future set in SPS it can only go down from there.
Instead of sticking with the flywheel where SPS is valued by the demand of DEC, the currency in which everything should be priced, this pricing model tries to circumvent the flywheel to FOMO people to push SPS price for a couple weeks before the inevitable decline. Well, I guess those buying now to dump at 0.1425 will be happy along with those selling SPS all the time anyway.
Yes, we all want to see a higher SPS price, sure, but the reality is, the SPS discount forces everyone to swap for SPS first and if they don't, they simply pay more for the same product. It is a completely unnecessary imbalancing of asset values in the ecosystem, when the exact same could be achieved by simply pricing everything equally. Nothing stops the DAO from accepting all currencies and then just swap except for the LP fees. All it does is create a very high fee for paying in the wrong currency and what makes it even worse, the proposal even suggests that it wants USDC, so why punish people for paying with it.
They are priced equally...
The only imbalance is that the current price of SPS is allowing for a discount...
I do not understand how this is complicated.
5000 DEC
5000 Credits
1400 SPS (current price is allowing for a discount)
There is no "discount" only a variance in market valuation and thus the incentive to spend the SPS, so the DAO gets a buttload of SPS for the Reward Pool.