![]() ![]() The two variables are the total airdrop points (higher means lower rewards for the same # of airdrop points you have) and the price of SPS (higher means better yield in $USD terms). The daily SPS distribution is fixed at 1.1M and the # days remaining we also know. The equation we can use to determine the intrinsic value of DEC is the following: Now that we've determined that the price won't be dramatically affected by inflation, let's look at how the airdrops give intrinsic value to DEC, with the price of SPS and the airdrop value of 1 DEC being the primary factors. Even if the amount of DEC added each day were to be 2x or 3x that, it still wouldn't have a material impact in comparison with the value of the airdrops. That's only about 0.01% "inflation" in airdrop points per day (we'll get to why that's important), or a 2.4% in the airdrop points balance over the coming 229 days. If you're wondering why this inflationary mechanism (1M DEC added every day for player rewards) doesn't have more impact on the price, look at it this way: 1M DEC adds 1M airdrop points to a current total (at the time this article is written) of about 9.6B airdrop points. (4) The inflation rate of DEC continues to be 1M / dayįirst let's explore #3. ![]() (3) There are currently 9.6B total airdrop points (combining all factors that contribute to the airdrop). (2) There are 229 days remaining in the airdrop as of today (Dec 10, 2021). (1) There are 1.1M SPS distributed each day via the airdrop rewards Some important data points as well as assumptions to keep in mind first: Ok so what does that mean for DEC going forwards? In a nutshell, I'll show you why I believe that the overwhelming force driving DEC price today (and for the foreseeable future) is the price of SPS, due to the airdrop points obtained with DEC. Furthermore, outside of an initially very large pump on DEC (probably speculative and expecting SPS to go straight to the moon.!), the two have largely been very correlated (roughly 0.9, which means they move together closely).
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