Buy DEC before it's too late! We're still at a 25% discount on DEC versus peg! Here are two factors that you might not be thinking of that will drive DEC back to peg!
I've said in a few videos now that I think DEC will 100% get back to its peg, where 1000 DEC equals $1 US dollar. That being said, it's still over 25% lower than its intended peg! Why is that? Mostly because there was and still is an abundance of DEC in the game with little to no burn mechanisms.
When we think of DEC burn mechanisms and demand, most of us immediately default to guild upgrades as the #1 burn mechanism, and then look to Chaos Legion packs and/or the more recent Splinterlands TD for increased demand.
While I agree with those factors, I think a lot of us are overlooking another burn mechanism and demand that's coming VERY soon. I'm continuing to convert my in game SPS into DEC to prep! What am I talking about?
Before we get started, remember that NONE of this is financial advice! I'm simply letting everyone know my positions and planned moves! Also - if you enjoy this content, please help support my content creation journey with a quick like and subscribe! That way you can stay in tune with my weekly video releases!
This overlooked burn mechanism and demand has EVERYTHING to do with the Riftwatchers pack sale and the release of the set! I happened to catch this little snippet while browsing through the Discord Maverick chat, where there were multiple conversations on DEC and how it may get back to peg.
Let's take a look at some of the conversation! Right HERE is a very critical piece of information that I'm not sure everyone knows. DEC used to purchase Alchemy and Legendary potions are burned! WHOA - did y'all know that? I've always thought it was a revenue stream for the team!
There's a few other screenshots here from the Mav Chat where Gene, CryptoEater, and even Aggy talk about DEC burns and how the supply of DEC may go way down in the near future.
We obviously know that Splinterlands card packs like Riftwatchers and Chaos Legion require potions for a better EV, but there's also some speculation that the Splinterlands TD packs may require them as well!
As CryptoEater and Gene calculated here, even if we assume that half the potions people use are won through daily focus and season chests, we're still talking about over half a BILLION DEC tokens being burned for the Riftwatchers set
Now - i'm not sure how it works if potions are bought using credits, but at this point in time - PSA: you should be purchasing all chaos legion packs and potions using DEC. At the end of the day, it's WAY cheaper. ALSO - PSA, do NOT use the SPS burning mechanism until DEC is back to near peg. You can use the Hive-Engine liquidity pools to convert SPS to DEC at a cheaper rate!
So with this information, I'm moving a lot of my assets over to DEC for the near term. I'm doing so not only because i need a TON of potions to open my own riftwatchers packs, but I think DEC will hold better value over the next couple weeks vs. SPS.
I think the next catalyst for SPS may be the Genesis League Soccer white-paper release, but with the likely passing of a proposal to award SPS to land holders, the SPS market will only continue to inflate.
That's it for this short video! I wanted to get this one out before the Riftwatchers pack opening so that y'all can maybe make your moves before prices go up even more!
What are your thoughts? Do you think holding DEC in the short term is the right move? When would you swap that back to SPS? Let me know in the comments below!
Follow me on my Play to Earn Crypto and NFT gaming journey by liking the video and subscribing to JosiePlaysCrypto! I am also on Splintertalk, PeakD, and 3Speak as JosieB. Love you fam!
#Splinterlands
#Play2Earn
#YGG-SPL
YouTube Channel: https://www.youtube.com/channel/UCfMukLfL73UxIr3WMOSaBxA
Patreon Support: https://www.patreon.com/JosiePlaysCrypto
Splinterlands Affiliate Link: https://splinterlands.com/?ref=josieb
