Splinterlands

Splinterlands, a strategic NFT card game, operates on the Hive blockchain. The game allows players to battle each other using cards, and it has a governance token called Splintershards (SPS). The SPS token is highly volatile and has experienced significant price fluctuations. It peaked above $1 in 2021 and then depreciated to around $0.20, an 80% decrease from its all-time high. Despite this, the token has managed to rebound during market crashes, suggesting it could recover again if history repeats itself.

The SPS token distribution at launch was divided among various stakeholders: 30% for staking, 30% for game rewards, 14% for an airdrop, 10% for the foundation, 9% for the team, and 6% for a private sale. The token is used for governance and decision-making within the game, giving players and asset owners control over the game's development.

Splinterlands has a large ecosystem, supporting multiple blockchains including Ethereum, Tron, WAX, and Binance Smart Chain. This allows users to purchase DEC tokens and NFTs using native currencies from these blockchains. The game also features instant withdrawal of NFTs, enabling players to sell them on the open market.

The game has a significant player base, with over 260,000 daily players, making it one of the most-played NFT games in the world. It has also seen significant partnerships and developments, including listings on various exchanges and the release of new features and content.

Splinterlands is a multiplayer collectible trading card game built on a Web3 platform. It features two tokens: Splintershards (SPS) and Dark Energy Crystals (DEC). SPS acts as a governance token, empowering players to participate in the evolution of the game by allowing them to vote on suggestions related to the game's future development, such as new features, card releases, and other game and economy updates.

The maximum total supply of SPS tokens is 3 billion units, with a pre-determined distribution schedule that lasts for approximately 65 months from the token's release date. The distribution is as follows:

• Airdrop: 400 million tokens (13.33% of the total supply) will be issued over 12 months to holders of nearly all types of Splinterlands assets.
• Foundation/DAO: 300 million tokens (10% of the total supply) will be issued over 65 months, with 50 million tokens released on day one and the remainder released in even increments over the remaining 64 months.
• Private Sale: 200 million tokens (6.66% of the total supply) will be unlocked over 10 months.
• Unallocated: 270 million tokens (9% of the total supply) will be unlocked over 65 months.
• Partners/Advisors: 30 million tokens (1% of the total supply) will be unlocked over 24 months.
• Play to Earn: 900 million tokens (30% of the total supply) will be issued over 65 months.
• Staking/LP/Oracle Rewards: 900 million tokens (30% of the total supply) will be issued over 65 months.

To participate in the governance process, users must deposit SPS tokens into a staking pool. Each staked SPS token represents one vote, so the more tokens deposited, the greater the user's voting power. SPS staking is locked for 4 weeks, after which tokens can be unlocked.

SPS tokens are used for various purposes within the game:

• Entry Fees: SPS is used as an entry fee for game modes, such as tournaments.
• Rewards: Players earn SPS as rewards for participating in various game modes, including daily quests, battles, and tournaments.
• Staking: Players can stake their SPS to earn passive income in the form of daily rewards.
• Trading: SPS can be traded for other cryptocurrencies or fiat currencies on various exchanges that support it.

The SPS governance token operates on the Binance Smart Chain (BSC) due to its high popularity, low fees, fast transaction processing speed, and EVM compatibility. The game itself functions on the Hive blockchain.

The Splinterlands (SPS) token has several strengths that contribute to its value and utility within the game:

1. Governance and Decision-Making: SPS is a governance token that empowers players to participate in the evolution of the game by allowing them to vote on proposals and decisions that shape the game's future. This gives players a sense of ownership and control over the game's direction.

2. Reward System: The token is used to reward players and asset holders through various mechanisms, such as airdrops, staking, and play-to-earn models. This incentivizes players to engage with the game and hold onto their tokens, which can lead to increased player retention and a more active community.

3. Staking and Liquidity: SPS tokens can be staked to earn rewards and enhance gameplay. This staking mechanism helps maintain liquidity within the game, ensuring that players have access to the tokens they need to participate in various activities.

4. In-Game Utility: SPS tokens have a direct impact on gameplay, as they are used to calculate reward points and determine access to higher-ranked leagues. This integration makes the token an essential part of the gaming experience, increasing its value and utility.

5. Tokenomics and Distribution: The token's distribution is well-planned, with a fixed total supply of 3 billion tokens allocated across various categories, including airdrops, private sales, and rewards. This structured distribution helps maintain a balance between different stakeholders and ensures a steady supply of tokens over time.

These strengths collectively contribute to the SPS token's importance within the Splinterlands ecosystem, making it a valuable asset for players and investors alike.

Splinterlands, a blockchain-based digital collectible card game, carries several financial risks associated with its governance token, Splintershards (SPS). One significant risk is the potential for market fluctuations, which can impact the value of SPS tokens. This volatility can lead to significant losses for investors if the market trends negatively.

Another risk is the distribution of tokens, which can influence the overall supply and demand. The tokenomics of SPS, with its various allocations to different groups such as the DAO, private sale, team, partners, and play-to-earn mechanisms, can create imbalances in the market if not managed effectively.

Additionally, the game's reliance on blockchain technology and the HIVE blockchain specifically can expose it to risks associated with blockchain security and potential forks or splits, as seen in the past with the STEEM blockchain.

Furthermore, some users have expressed concerns about the game's mechanics, such as the introduction of soulbound reward cards, which may have reduced the incentive to play and earn rewards. This could negatively impact the overall adoption and usage of the game, affecting the value of SPS tokens.

Lastly, there is a risk of Ponzi schemes, where existing investors are paid with funds collected from new investors. This is a common risk in the cryptocurrency space and can be detrimental to the game's reputation and the value of SPS tokens.

Overall, investors in Splinterlands and SPS tokens should be aware of these financial risks and carefully consider them before making investment decisions.

• Dr. Jesse "Aggroed" Reich: CEO and Founder of Splinterlands, with a background in game creation, software sales, and marketing for educational software companies.
• Matthew "Yabapmatt" Rosen: CTO and Founder of Splinterlands, with extensive experience in game design, computer programming, and blockchain technologies.