RE: SPS Governance Proposal - Reduce SPS to DEC Conversion Fee
You are viewing a single comment's thread:
Deepseek did also warn that big players and arbitrage bots could potentially exploit this by burning large amounts of sps at improved rate -> quickly sell newly minted DEC to the open market for quick profit -> DEC price crashes. Not sure how realistic this scenario is, but worth discussing.
0
0
0.000
Yes that is the incentive which is the mechanism of the flywheel I supose I dont see it as an exploit because if the price of DEC falls below 1: 1005 dec then there will be no incetive to burn. Further more there is no quick swap from dec back to sps potentially without a cost. If you are planning to swap it back , you would need to cover the transaction costs of swaping it back to sps I supose which is not easy @.5%