Splinterlands Suggestion to Boost Market Volume, Liquidity and Utility for DECs
Hey guys!
It's been a while since I last posted and today I'd like to introduce you all to an idea I've been thinking about since before DECs even came out!
Benefits of the suggestion
- Makes it cheaper for new players to start playing the game
- Makes it easier for old players to take profits if they wished to leave
- Increase liquidity on markets
- Stimulate volume in the markets
- Increase demand and utility for DECs
- Additional source of burning cards and DECs
- New players will no longer be throwing away often 50%+ worth of value just by combining their cards
So... after hearing all the benefits, what is the actual idea??
Allow users to uncombine cards at a cost of cards and DECs!
My idea involves allowing users to uncombine their cards at a cost of 10% of the total BCX of the card they're uncombining plus a cost of 25% of the DECs of the card they're uncombining for normal foil cards or 1% of the DECs of the card they're uncombining for gold foil cards.
I'm also hoping this new functionality will come with a brand new guild structure (name yet to be decided) which can be upgraded with DECs to give a discount to the DECs consumed for uncombining, however, this will not give a discount for the BCXs sacrificed.
How this can benefit new and existing players
A lot of new players fail to understand the difference between lowest price/card and lowest price/BCX. Imagine buying a card for $0.254 to combine only to realise weeks later you destroyed almost 50% of the value of the card. This can be a relatively upsetting reality for a lot of new players.
Furthermore, the cost of entry is simply too high for new players who want to build their collection up from scratch using their DEC scraps and the small number of sales they might make from reward cards. By increasing the number of single-copy cards for sale, this could drastically boost the amount of progression for new players while simultaneously providing older players more liquidity if they wished to sell.
How this can boost the economy
Remember the phrase "trade creates value" in your first level economics class? I believe this feature will significantly boost the volume of card sales as people buy up combined cards for arbitrage opportunities and uncombine them to sell as singles. Secondly, this will boost the demand and utility of DECs which as the primary currency of the game, will boost the game's overall economy. Thirdly, this will actually decrease the overall BCX of cards, as opposed to decreasing the overall card count like we have been doing slowly with combining cards. This is essentially a secondary burn function for cards that overtime may keep burning cards as the price of cards far surpass the DEC burn rate and people stop burning them.
Overall, I believe this feature will be beneficial for almost every party involved.
However, there's a tradeoff with everything so below I have also identified some potential cons related to uncombining
- May impact pack sales
- Will impact the price of alpha and beta packs in the short term
- Will impact the price of single cards but will definitely boost the price of combined cards
With all the cons I have identified above, I believe over time these cons will slowly cancel out as more and more cards are burnt from the uncombine function
A neat bonus!
- May uncombine cards like Archmage Arius and Prince Julian for low-level copies
Please let me know your opinions of this new feature in the comments below!
If you have any questions regarding the feature itself, or the pros and cons list, please discuss below!
These are some great ideas to help the game, I fully support and agree about each points, the market really needs some liquidity and this will definitely help create it.
Congratulations on an excellent win. Best of luck in the rest of the tournament :)
Hey Matt! Sorry I don't really check Steemit anymore and just saw this, that was a good game!
Totally, it'll also really help new players who start playing once the game gets into the App Store who don't want to spend too much on a mobile game
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Originally i didn't understand the need/desire
But I think if you add a DEC cost then sure why not... that would be my response.
I actually think it adds a benefit of helping new players get the exact amount of cards they need to get to the next level they're aiming for.
However it could have the impact of pushing prices down a bit because it could expand the number of singles... however on the other hand those singles have more value because of the burn cost ... so I'm not sure. There might need to be good enough demand for those 1bcx cards... right now I don't know if there's the demand so what good would it do us.
However I think the formula would probably need to be much more simple than requested.
Like one % burn price. I guess that could be based on burn value?
It's easy to know the burn value so you could do something with that number easily.
IN OTHER WORDS
It seems like the present system rewards users to NOT COMBINE because they know the 1bcx cards will be worth substantially more than uncombined.
Let's use an example
I can burn a 61bcx card for 3660dec
That's 60DEC per card for this rare
With the price of DEC at $.00062 ... that's 3.72 cents per card.
At DEC at full cost of .001 it would be 6 cents per card to burn
So does it cost 25% or maybe 50% to do the uncombine action?
I mean even if you said 50% dec for uncombine that would be 3 cent difference even if DEC was full cost. Seems like it'd be worth it in a few cases and would help arbitrage the single card cost closer to the actual "low bcx" which is the number we use in the actual market valuation stuff.
Given the current system i'd probably uncombine take the 1.85cent per card aka pay 1830 dec and list them as 1bcx cards for like 10-12 cents in this example.
Also this makes it nice for the BID MARKET so people can get the cards they're hoping for to get exactly to the point they want. And it helps with the bulk calculator option which users can use to specify exactly the card they want and there's a lot more 1bcx cards in the market to get them that number. There have been many times when I just needed a couple more alpha cards to level up but there were essentially no more 1bcx cards in the market. The price can be as drastic as $4/$1
Exactly! I 100% agree with the do not combine sentiment. I combined thousands of BCX worth of Mushroom Seers and Flame Imps which are now worth less than half they would be if I didn't combine them. I have pretty much combined no cards since then.
With the cost of this, there's going to be a lot of arbitrage opportunities at the start but ideally, these opportunities will disappear as the price/single and price/BCX converges to ~10% difference.
I think the DEC cost is fair, 25% of DEC burn rate of the card, so in this case 7.5 DECs per card or 862.5 DECs for a max level Flame Imp. This might be a small amount but with thousands of cards being uncombined it'll add up, plus it'll generate a lot of demand at the start if we include a guild structure that can reduce the DEC cost of uncombining.
Your alpha cards example is actually why I'm raising this point again, many months after I first mentioned this idea publically on Discord. I have tens of thousands of alpha cards which I simply am not able to sell. Out there, there are people who are missing a few alpha cards for the next level and don't want to pay a 200-300% premium just to combine it into their existent card and destroy that value.
I believe for the longevity and long term health of the markets, particularly alpha and beta markets as more and more cards get combined, allowing an uncombine feature at a small cost is vital.
Newcommers are hit by huge prices of leveled cards. Veteran players simply don't want to lose their value and simply do not sell maxed cards lower. In this pat-situation there is no market and game slowly goes into stagnation.
Uncombining cards can be a good consensus between new and veteran players. DECs as a tax in this process grants additional usage of this token (boosts value!)
I hope good decision will be taken in this area.
Thanks for your support of the idea @mys, how you described it is exactly the situation we're in now and with this feature I'm hoping we'll move from stagnation back to a liquid market!
Nice suggestion, I am not sure how it would affect the prices of card, etc. Very great Splinterlands post! Have a great season-ending! An upvote is on the way!
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Cheers @clove71! This will definitely increase the prices of combined cards and decrease the prices of single cards in the short run, but overall I think this will increase liquidity and overall quality of life significantly for new and existing players.
I agree that giving an option to uncombine would increase trading volume and demand for DEC.
Nice suggestion!
곰돌이가 @glory7님의 소중한 댓글에 $0.026을 보팅해서 $0.016을 살려드리고 가요. 곰돌이가 지금까지 총 7390번 $95.355을 보팅해서 $99.934을 구했습니다. @gomdory 곰도뤼~
곰돌이가 @gomdory님의 소중한 댓글에 시세변동을 감안하여 $0.009을 보팅해서 $0.033을 지켜드리고 가요. 곰돌이가 지금까지 총 7445번 $96.764을 보팅해서 $100.835을 구했습니다. @gomdory 곰도뤼~
Thanks @glory7, glad to hear you agree :)
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Congratulations on an excellent win. Best of luck in the rest of the tournament :)
Lol. This was a resteem from Kryptokayden. Thought I was commenting on her post :)