SPS Foundation & DAO

The SPS token and all related tokens and smart contracts are intended to be set up as a Decentralized Autonomous Organization, or DAO. This means that all decisions relating to the token and related assets or contracts will be decided via votes of all staked SPS token holders, with the weight of the votes being determined by the amount of staked SPS tokens held in each participating wallet. The DAO is able to hold, send, and receive cryptocurrency which allows it to sell products and pay for services at the direction of the token holders.

All of the funds owned by the DAO, including those from the SPS private token sale, token emissions that go towards the DAO, and proceeds from product sales on behalf of the DAO (e.g. LICENSE tokens and Riftwatchers packs), are currently held in DAO multisig wallets that are controlled by DAO elected Treasurers. The SPS Foundation is a Panama-based Private Interest Foundation owned and operated by a board of DAO elected representatives.

The purpose of the SPS Foundation is to represent and carry out the will of the SPS DAO as outlined in the Governance Voting System section of this document and to bridge the gap between the decentralized, blockchain-based structure of the DAO and traditional legal and regulatory systems. It will provide a recognizable framework for managing assets, entering contracts, or handling liabilities on behalf of the DAO while preserving its decentralized ethos.

DAO Funding

As noted in the Token Distribution section, 300M SPS tokens, or 10% of the initial supply, has been released to the SPS Foundation which is available to be used by the staked SPS token holders through the DAO. Token holders may submit proposals as described in the Governance Voting System section of this document to direct the use of those funds.

Some examples of how DAO funds may be used are below, however it is ultimately completely up to the staked SPS token holders to decide and these are merely examples and suggestions.

1. Providing Liquidity - Token holders may vote to use some foundation tokens to provide liquidity for the token paired with other popular tokens on third-party markets such as Uniswap, PancakeSwap or Hive Engine. This may also allow the foundation to earn revenue in the form of liquidity provider rewards to sustain itself going forward after the initial tokens are all distributed.

2. Paying for Services - Token holders may vote to use some foundation tokens to pay for certain services that are expected to add value to the ecosystem, for example exchange listings or marketing and promotional services.

3. Funding Third-Party Development - Token holders may vote to use some foundation tokens to fund third-party development of tools and/or services that are expected to add value to the Splinterlands ecosystem, for example third-party markets, automation tools, bridges/integrations to other blockchain platforms, etc.

4. Staking - Token holders may vote to use some foundation tokens to stake within the game (more details on staking in the Staking & Earning section) and earn returns and other rewards to help the foundation sustain itself going forward after the initial tokens are all distributed.

5. Investing - Token holders may vote to use some foundation tokens to invest in other assets or tokens (whether related to Splinterlands or not) in order to earn returns and other rewards to help the foundation sustain itself going forward after the initial tokens are all distributed.