Burning DEC
DEC (Dark Energy Crystals) the in game currency of the Steemmonsters/Splinterlands game is one of the most pronounced Steem token. The team has done excellent job around the token. It has many use cases and they have slowly added more and more. You can buy orbs, potions and skins with it. The guilds need it for upgrades. The tournaments prizes are now payed in DEC, and since recently you can buy beta packs with DEC.
Burning tokens, or creating sinks is great. It creates pressure on the price of the token. It provides use cases for the token.
The DEC token was launched starting from 05/20/2019. An overview will be made on the tokens burned starting from that day until today. All transaction to the @null account will be presented on a daily bases.
Here is the chart.
The vertical Y axis is on a logarithmic scale for better readability.
The DEC Created line is the daily reward pool according to the anouncment from @steemmonsters a 1 million per day and going down 1% each 30 days.
The DEC Burned line is the DEC sent to the @null account.
From the chart above we can clearly see that the burning rate of the DEC token is at very high rate and it offsets all the new tokens created. In the period analyzed there is more DEC burned than created. An approximate 196 million DEC burned vs 116 million DEC created. Now there is one huge transaction on June 13th of 76 million, but even without this transaction, the result will be all the new DEC created, get burned as well.
It is amazing to see this numbers. A million tokens per day is a high inflation to deal with. But with the right use cases we can see that all of them are being consumed buy the players.
All the best
@dalz
The DEC tokens are cheap and used to by votes on the steemmonster bot which also awards Steem to mostly shit posts.
Not a fan
Not sure that is a big share of it...will extract that data in the future...
Was waiting for this post! Thx!
Here it is :)
How does those numbers looks to you?
I was amazed by the fact that more DECs are burned then created on a daily basis.
I do agree with some comments that probably most are burned by buying steem upvotes. I do delegate to steemmonsters and I do earn a steady 40 DEC per day. So, yes lot's of them are burned that way!
I also do wonder if the DEC which were needed to start the guild and improve the buildings are also burned, if so this maybe could be the main reason that so many DECs are burned.
But regardless what the reason is, it is good that I am trying to save some DEC and put it safe! One never knows what the value of those tokens could be!
The DEC price is very stable ... but the fact that there is a million of it created every day is a bit worrisome for me :) It is 360 millions tokens per year
That is a high inflation that requires high demand and engaged players .... we have that at the moment and if the demand increase it will go up .... but even a slow decrease in game activity can put a pressure on the token ....for now the balance is positive ... hope to continue in that way :)
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