How Much SPS Will Land Burn?
In this video, I cover the math behind how much SPS could burn for land needs once it is out. We take a lot of assumptions here, including that SPS will burn around $0.02 (current price is less) and that of course DEC would be back at peg.
I tried to stay conservative on the math, but essentially for every 1 billion DEC tokens needed we would burn about 50 million SPS. In the grand scheme of things that may not seem like a lot as we have over 1.1 billion total in circulation. But with over 650M staked and another 100M in the DAO, that doesn't leave much liquid supply available. In fact, 150M SPS is roughly half of what is currently liquid and we know it will take the purchasing of much less than that to move the price significant.
Of course, if the price of SPS starts to increase then less of it will be burned for the same amount of DEC but as I said earlier, just trying to keep the numbers simple to prove the concept.
Exciting times ahead!
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▶️ 3Speak
I think we gotta see how profitable and motivating the land release will be before we get too far carried away with all the projections based on % of total land use.