The Splintershards token will be set up as a Decentralized Autonomous Organization or DAO via a series of smart contracts which will be published on the Binance Smart Chain (BSC) platform.
The Ethereum blockchain was the first choice for the governance token contracts; however, the gas fees required to publish transactions to the Ethereum blockchain have become prohibitively expensive and would greatly limit what can be done with the governance token contracts and the number of people able to participate.
As a result, the Binance Smart Chain was chosen due to many factors including its current popularity, low transaction fees, fast transaction confirmation times, and the ability to easily port smart contracts between BSC and Ethereum which will allow the Splintershards contracts to be migrated to Ethereum in the future when/if it makes sense to do so.
Once the smart contracts have been developed and released, users will be able to stake their SPS tokens in the smart contract at which point they can be used for governance voting in the DAO. The Splintershards token will be 100% controlled and governed by the community of token holders, and all aspects of how the token and associated smart contracts function will be able to be changed through a vote of staked SPS holders.
All interactions between the Splinterlands game (which runs on the Hive blockchain) and the SPS tokens (which will run on the BSC blockchain) will be handled via an oracle system.
The oracles will be users or other entities elected by the SPS token holders that will be responsible for running software that will relay relevant information about game transactions on the Hive blockchain to the SPS token smart contracts on BSC and vice versa and will receive SPS token rewards for doing so properly.
Please note that it will not be necessary for players to have a Binance Smart Chain wallet or interact with BSC in any way in order to earn SPS tokens via the Splinterlands game and participate in game-related governance voting. Tokens earned and held in the game will be "locked" in the SPS smart contracts on BSC until/if a player chooses to transfer them to a BSC wallet address which will be handled via the oracle system.
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