Asset Prices and Keep Update

in PRAETORIA8 days ago

Asset Bubble

If you are farming Praetoria, you must have seen that your earning is declining a bit. This is due to falling asset prices, and that is due to high supply and low demand for the assets. Below is the production allocation of all producible items in Praetoria. If I just focus on the natural resources, we can see below that the three new natural resources Wood, Stone and Iron, we have very similar amount of boosted PP deployed in general. Remember, that is a direct measure of production.

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Grain off course is the main consumable, and easiest to produce in terms of production difficult. So we still produce a lot of it, and have about 24% of the total boosted PP deployed on grain plots. While Wood, Stone and Iron show 13%, 14%, and 15% PP deployed on them respectively.

We currently produce about 123M Grain everyday but consume 125M Grain. That leads to a 2M deficit, which is good. Over the years we have stashed about 7 Billion in Grain surplus. So 2M grain deficit daily is NOTHING!

That will take 9.5 years to burn through the surplus!

That is a LONG time. Even if we run a deficit of 10M grain/day on average (this is a very optimistic projection), it will still take about 2 years to burn through the grain stash.

We also have beginning to create a surplus of Wood, Stone and Iron. They have a surplus stash of 296M, 101M, 32M respectively. Now, the resources that are in the pool are not added. We can manually add that:

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So the net surplus becomes:

ResourceAcc. Holding (Millions)Pool Holding (Millions)Total
Grain7,0023,42410,426
Wood296260556
Stone10196197
Iron323769

Notice: We are holding similar quantities of Wood, Stone and Iron in the pools, but holding more grain individually. This is because:

  • Grain is very cheap, and doesn't generate any meaningful revenue in pool
  • If prices rally, holding resources in the pool will always underperform holding resources outright
  • People have long speculated grain to move up in price

By the way, that last speculation didn't work out in the short term. I always say one thing about the long term speculation :

in the long term, we are all dead

Also, let us re-visit that potential daily grain deficit again. Even if we manage to do 10M Grain/day deficit (currently we are at 2M, but we have been to 6 in the past), it will still take us 10426/10 = 1042 days = 2.8 years to reach parity!

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KEEP

@beaker007 is doing an update on how Castle and Keep should be valued. In order to do that we must accurately investigate how each Keep and Castle perform in terms of earning. This is not an easy task, and obviously there is currently no in-game of 3rd party tool that allows users to investigate that. In order to help bearker, the first thing I did was took a basic screenshot of my keeps/castle:

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Although this gives a visual of relative performance of the keeps with respect to each other, it doesn't have a time stamp. So he asked me to do the following:

  • harvest a region
  • harvest a keep
  • wait for a defined amount of time (preferable 1hr)
  • harvest that region
  • make a screenshot of that keep how full it is with the resource

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At 10:00 CST 6/27/20025 I did a regional harvest. It was about 13 hours worth of production.

I also harvested all the keeps and the castle

Now all my keeps should be empty, and I double-check that they are:

PR-PNW-010-01-051

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Now I will check and harvest exactly at 11 am.

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PR-PNW-010-01-051

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All Keeps and Castle after 1 hour

I think I have done the timing accurately:

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This is a massive amount of precision copy-paste folks!!

I need a break!

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Sort:  
 8 days ago  

Thanks a lot @azircon,

After some full on 🤓 (nerd mode) i can say that the math seems to be correct

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Things with keep and castle are hard to verify because I do not own it myself :).

P.S. for the total resource supply I will need to add the liquidity pool to it some day 😁

Didn't you harvest the 070? It's still at 9% at the picture. Anyway, that does sound like a lot of C&P work - and that is beside the clicking :-D Thank you!

The amount of hours beaker and I put into this surprises even me sometimes! :)

And I am rarely surprised.

I hate to be surprised by the way. We have phrase here : coming out of left field.... I don't like anything coming at me from left field :)

It's appreciated! If there's anything I can do with my 5 plots, let me know :-D I can time harvests! But I doubt it'll be of any use... Most of the people on HIVE and Splinterlands throw in way more time and energy than the economics justify. I hope it's appreciated by more than just a few weirdos like me.

The Keep and Castle valuation sounds like it is in progress, but with the negative picture you are painting in terms of land resources becoming more abundant and therefore looking to be cheaper in the future I would be very surprised if the Keeps will be increasing in value over time with those kinds of dynamics.

Sounds like everything in Splinterlands needs more new players and ideally a strong Play to Earn narrative...

I think we already saw what the update with resources was able to spike. And currently the focus is on many sinks. As soon as the revival-potion for survival is on, we'll have another big sink for land, and this time a lasting one. Midnight-Potions and all those little auction things are just a few drops on a hot stone.

If land goes down in the short term, I will be buying some more. After those alchemy packs for the conflicts... why is money so limited!

Money is always limited, though I don't know how Billionaires feel about it. Maybe if you are Elon Musk you don't feel that money is limited :)

I can see that there is some Land Alpha from Azircon about those sinks and creating resource scarcity...

It's published a long time ago. So long ago infact that people have forgotten it.

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All the brown arrows are wood sink. Also everything requires grain.

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In fact, I am inclined to speculate differently. I do not speculate price, but since I have a fairly good idea on the direction the development of land is going I can influence the outcome. The purpose of all these analyses is to steer the ship in the correct direction. In 2 months like there are multiple items that are coming which will act as a sink and address the problem of resource abundance.

This land tool is becoming one of my favorites to use and has been very helpful in getting me focused on DEC/hr and my lands potential. All that to say it’s helping me develop a plan for my plots. Thank you guys for all the work you’re putting into it. 🙏🏻

You are welcome. This is community service for us, we are glad community finds it useful.

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