Thank you for taking the time to educate the community and write this article. Early on, Matt mentioned that he loves the idea of using incentives to drive behavior. I believe we’ve reached a point in Splinterlands where those still here are the strongest believers. Even if the liquidity pools aren't offering the highest yields compared to the broader crypto space, many of us would still be willing to support them.

That said, without incentives, SPS pool yields will likely hover in the single digits from fees alone unless someone takes on a risky concentration strategy. Personally, I plan to support smaller liquidity pools even without incentives, but I don't expect others to follow without at least a small "carrot."

Using DAO funds to incentivize pools is tricky. It introduces coins that would otherwise remain non-circulating back into circulation. I’m not particularly excited about the DAO indirectly selling DEC and SPS in the process.

A small incentive of around 1,000 SPS per day (roughly $10.14) per pool would likely be enough to attract at least $20,000 of liquidity into many of the smaller pools. I would also love to see this same strategy duplicated on HIVE, even without the more advanced AMM features.

One more point a lot of people view this as just another game mode within Splinterlands. Properly structured liquidity pools will directly impact the market cap and token price. Once the pool fees are strong enough to sustain liquidity on their own, the rewards could be phased out entirely. In the short term, the value is clear, and PJ himself pointed this out.