Splinterlands Hedgefund?
A Current Issue
I am a huge fan of Splinterlands and the structure of the game. I enjoy opening packs, collecting/combining cards, planning strategy and playing the game. I also enjoy the game from a financial standpoint in terms of speculation and passive income through investing.
One problem area for Splinterlands lies in the fact that there are people who want to make investments into cryptocurrency games because they know they could make huge gains, but don't enjoy playing or participating in the game economy.
The other night when I pitched the idea to my friends, they were interested in putting some money in, but either don't have the time or the interest to play the game or learn/keep up with the rental market.
A Solution
It became apparent to me at this point that people read the news about assets making huge market gains, but are often reluctant to get involved because they don't feel they can get fully involved with it.
What my friends specifically could benefit from (and thus maybe others with similar mindsets) would be a mechanism where they could invest capital and an active player or coalition of players could handle the diversification of the in-game assets and the earnings side of things (i.e. rentals or using the assets to earn DEC to be redistributed).
When trying similar concepts in the past, I have found myself getting bored and not following through with things, but the idea is a solid one.
The Positives
More people would get exposure to Splinterlands assets and more people who were very unlikely to get involved will be joining the ecosystem.
The managers would earn a brokerage fee of some kind or maybe they would take a portion of the profits; it would need to be a case by case basis and could be offered up like something we see on Fiverr.
Increased investment would be good for the market and we could start to see some upwards price trajectory whereas we have been seeing dropping prices as of late (minus SPS, @splinterlands congrats on getting listed on crypto.com).
The Risks
The risks lie in the fact that in a situation like this there would need to be a high level of trust. Due to the fact that you have to hold private keys and divulge information to hold the assets, a fund like this would have to utilize the delegation feature of Splinterlands in order to make sure that the managers would not run off with the investments. This does present another negative as the investor would have to trigger the delegation transactions which would require them to at least learn basic knowledge on the process (something that they likely wanted to avoid from the start).
If anyone has a better solution for that reality, I would love to hear it.
Additionally, there needs to be trust to report earnings and send those earnings out to investor wallets. Perhaps a data compiler could be employed by the managers to show transparency.
There is also the risk that people forget that Splinterlands is a game and not just a money making enterprise. However, this risk seems to be a moral one rather than something that would hurt the game ecosystem because of measures such as the DEC Capture rate that stops bots from continuously earning from battles.
Let me know what you all think, I am just spitballing an idea here and have no plan to actually bring it to fruition.
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My name is Rob and I am a prospective law student with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience
Splinterlands is suck!! It made me loss 1k buck👎