Esim - Monetary market death is coming
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Monetary market death is coming (Economical)
Posted 5 years ago by
PandaLT    
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Hi.

I've decided to release my thoughts written in #brainstorm-room to Liberty Games Interactive (AKA admin) as an article, because this thing should be important for whole Alpha, no matter what country you live in, what do you do and what do you hate.

Thing is, Alpha server is about to lose all monetary markets and all local markets. In every single country.
Those who know me - you know I did not made a single mistake from day 2 on Primera (that's 2620 days or more than 7 years) with my economy insights.
If you don't know me - well, read, decide and time will show who's right.




That's what I wrote to admin:

So, let's start from basic theory, and then move to issue here.

1. In this game one of national Org responsibilities is to keep stable currency rate. Like central bank in RL. That means when you have surplus of currency, you buy it, when monetary market is low on currency, there is always Org's offer to sell. In ideal situation all Org's should do that.

2. Primera and Suna servers have good stable currencies (at least countries has that possibility/opportunity to keep that rate). In Secura all markets are dead because of NPC (It was possible to change that at the beginning, but GO/SGO/GOA interpretation of rules at the start killed any chance of local market/economies).

3. That brings us to Alpha. At the beginning we have stable number of money (both, gold and local currency) in players and Org's accounts. So for Org's that's easy challenge to keep currency stable. BUT. Then comes constant flow of local currency from invited players. For simplicity let's call that money AAA. And that alone should be obvious thing not to do that. That's mistake in the general idea, bad understanding how works any economy, would it be in game or RL.

So, what happens with that AAA? If Org's want to keep stable currency rate, they have to buy surplus of local currency. But AAA is not a one time thing, it happens every day, more and more with each time people work and even increases with Eco Skill. So Org's has to buy it daily. Endlessly. But does Org's has endless amounts of gold? No. So what will happen with currency rate after Org's are out of gold? They won't buy surplus, so amounts of currency will increase every day, everyone will try to sell it (but no one wants to buy it, because there is surplus of currency). So people put currency at lower and lower price. End because it's endless, Final any currency rate will be 0.0001 g - lowest possible.

If that's too difficult, imagine RL. Central bank controls Euro supply / demand and currency is stable, prices in local markets are stable. But imagine what would happen, if people could print LEGALY small amount of Euros every day AT HOME. EVERYONE. So every day you would have surplus of Euros. Small amounts, nothing serious, but every day. Each currency has it's own 2 things - price and value. Price is how much for that currency people would pay in other currencies and value - how much you can buy for that currency. Both of those are dropping every day, if there is constant flow of currency, that is not printed/issued by central bank. In RL country can have a loan to pay for temporary surplus of local currency. But Everyone knows, that when that currency will come back to the country, you can return that loan.

In Alpha it's impossible. With constant flow of local currencies all currencies will die and local markets also.

I hope you will read it and make some changes. For example 2 easiest ways to do that:
1. Give people bonuses in gold, but not in local currency. Or
2. Remove that bonus.
3. Game could buy that currency from monetary market for gold and then send it to players.

UPDATE: Looks like local currency is not printed, but taken from a Treasury. Ofc, that does not change this article's point, it only makes situation a bit worse.

UPDATE 2: I have news. This problem will be presented to creators team on their meeting on Tuesday. So let's hope they will understand it and fix it.

If you agree - vote, if you want to see my thoughts in the future - subscribe!

Cheers,
PandaLT

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