What if I tokenized a splinterlands account?

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What do I mean?




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This is just an idea that i was playing around with and is based on similar ideas about tokenization. For college I did a lot of work studying the various use cases for tokenization and industries that it could apply to.

I have also seen @empoderat create the "SEED" token to back his financial activity in the markets by having a token sale for capital and then try to build profit with that capital.

We all know that @splinterlands is a brilliant game but to get anywhere you will need to sink a good bit of money into it if you want to compete at the highest levels.

With the new chaos legion packs driving down prices we have a great opportunity to buy into the game to build a max level deck and become competitive in the champions tier.

I would still take a lot of money but buying chaos cards could get you there a lot cheaper and become very profitable over the course of a year or two.



My idea.



Not everybody has the money to buy into those higher levels but would love a piece of the action. It would take thousands to build any sort of competitive deck and tens of thousands to build one to rise to the highest levels.

That is a lot of money and then you would have to learn the game.

What if you could just buy a stake in this deck instead?

This is just a theoretical post for now to flesh out the idea but what if I minted 10,000 "CLAN" tokens.

I then list 80% of these CLAN tokens on the market at $20 HBD each keeping a percentage for myself as the administrator and player of the account. Or 1,000 "CLAN" tokens at $100 HBD depending on the interest and ideas generated.



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Then take the $160,000 and buy splinterlands assets. These assets would be used to play the game at the highest level possible while putting all earnings back into the deck.

Over time as the deck grows and wins more prizes the value would rise along with the value of the game itself.

If the value of the deck rose by 100% over the year then the token value would rise to the same extent. These tokens could be bought and sold on the open market at fair value price decided upon by the owners but backed by the value of the splinterlands account.

This is easy to see and a great way to have a small investment in the game without needing to put a lot of money into the game yourself and without having to play the game daily or manage assets within the game.



The structure



Use the money from token sales to start buying cards and DEC from the game.

I would not need to wait until all tokens had sold out as it would take time to find good deals on the market and to work my way up through the rankings. Rentals could be used to supplement the deck at the beginning as well.

All funds would be converted to DEC first of all. This would do two things.

One DEC gains a high number of airdrop points for the account earning daily SPS. This SPS would be converted to more DEC and used to build an even stronger deck.

All purchases would be done through monstermarket which gives cashback on purchases in DEC at 2.5%. this adds up over time and places more funds in the account for growth.

All profits and cards would be compounded within the account to maximize our deck.

Over time this would expand to purchasing land and renting out extra cards for more passive returns and increasing the account value.

One idea would be to do a dividend after a given period say every six months with the DEC held by the account could be sent to token holders.

This is all just theoretical for the moment to flesh out an idea and get community feedback.



Areas to look into.



Research token creation on hive-engine.

  • Cost.
  • Structure.
  • Initial sale.
  • Dividends.

Research similar tokens and how they work.

  • Index.
  • Seed.
  • Bro.
  • SPS.

Speak to the community and see if there are more ideas or suggestions for this idea.

  • Feedback
  • Interest
  • Advice



There are a lot of different ways that you could play this initiative but it would all depend on getting a good investment structure in place through tokenization and getting your price point right.

If you got the account of to a good start then the rest of the funding would follow as people saw how it was possible to back a venture that was increasing in value all of the time.

Start up funding could also be done in stages with a small round at a low initial price rising in stages over the sale period.

You would not need maxed out cards for the first couple of weeks as it takes time to rise up the ranks regardless of how good the deck is. There is a lot of competition for those champion places.


Would it work as an investment?

How would you improve the model?

Would you buy a share in the account?


Just something that i was thinking about this week as an idea and a good discussion to have about the game and the possibilities that exist on hive.

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The amazing power of tokenization.

This is the idea. Almost anything can be tokenized to enable people to get involved.

There is so much that can be done and something like Splinterlands (player) is an ideal way to do it.

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There is so much that can be done and something like Splinterlands (player) is an ideal way to do it.

I had written about something similar a while back as part of my college research.

Talking about a sports start that could tokenize their career and future earnings for capital now.

Same idea in a different sport.

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The idea is good. I use this for poker staking, have players that I lend stake to play higher compared to their bankroll.

!PIZZA & !BEER

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Thanks.

I think that there is huge possibilities for something like this within the game.

We have a few examples of how it could work form other projects but i haven't heard of anyone doing it for splinterlands yet.

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I think it would work as an investment. INDEX already does it to a similar extent since it buys GFL off the market and rent them out. Everyday we get a portion of the DEC returned to the holders while the rest is re-invested to buy more. Of course this depends on the person playing and which decks are more likely to win.

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I have some index and appreciate the returns form it. This would be similar but more aggressive with active playing of the account as well as rental and land plots.

Of course this depends on the person playing and which decks are more likely to win.

A very valid point and part of the investment decision. It would be a choice to back me in the game as a player and an investor.

is that a good idea?

I like to think so but who knows.

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I actually think there was a way to back players using SPS in the future. By delegating over your stake to good players, they would give you back some returns in-game and it helps both sides.

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I actually did something similar with the CTPSB project which is a tokenized hive account. The growth in value thanks to curation rewards and author rewards makes the token value grow. I think it would be an interesting project with splinterlands. What I would wonder is how to define the token value at any time. It would be necessary to kind of value the whole assets and divide it by the number of parts that are emitted. You would then need to set the market prices accordingly otherwise late joiners would have an advantage. It should be thought through well but it could indeed be an interesting project.

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It has the beginning of a good idea. I'll have to flesh it out further and see if it's worth going ahead with.

I might have a few questions further down the line. My biggest stalling point is how to do the dividends and trigger payments to holders. If this is a function provided by hive-engine?

What I would wonder is how to define the token value at any time. It would be necessary to kind of value the whole assets and divide it by the number of parts that are emitted.

That's exactly it. It would be easy to do up a weekly/monthly report on the account with current values. After that it would be up to holders to determine their market price for the token. All of the information would be available on the blockchain.

Initial prices would be say $20 with a 25% discount for early adopters.

So price for first month, $15
second month $18
Third month $20.

All money going into the account for purchases but early investors get an advantage.

After that it would stay at $20 until all sold out and market determines price from there on.

In theory.

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For my projects I'm using a python script to make the dividend payments. It has to be run manually but it takes only 5 minutes to send all the payments. That's the easiest solution that I have found so far. There is also the distribution contract on hive-engine that could be used and you could link it to a kind of diesel pool where people need to stake the token that you have created. I believe this would be the easiest solution, although not the cheapsest one lol.

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Very helpful blog but honestly I want to expose something that may make you wonder that I've never played @splinterlands and its a brilliant game just know from your blog. My good wishes for your friend who wants to make profit from his token. Thanks for sharing this kind of concept.

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