Economy can be very complex, i will try to make this post as simple as possible,
The prices are (almost) always falling. Many people complain about that. I make this post to tell people how the economy works, and ideas on how to make prices raise.
Remember minecraft economy, and IRL economy, doesn't work the exact same way.
This is an OOC document written by madus from The Bank of Cissa
Money inflation
Money inflation is when the amount of money raise. As an effect of that, most prices raise.
Commonly refereed to as "inflation".
Money deflation
Money deflation is when the amount of money fall. As an effect of that most prices fall.
Commonly refereed to as "deflation"
Item inflation
When the amount of some items raise. As an effect of that the prices on those items fall.
Commonly refereed to as "Item inflation" or "Resource inflation"
Item deflation
When the amount of some items fall. As an effect of that the prices on those items raise.
Commonly refereed to as "Item deflation" or "Resource deflation"
Money sources
This is where new money comes into the economy. This cause inflation.
Money sinks
This is when money gets removed from the economy. This causes deflation.
To read more about these money sinks and sources. Check the official documentation.
Item sources
This is when new items/resources come. Causing item inflation.
Making a complete list on this will be hard. But a few common things is.
Item sinks
This is when new items/resources gets used. Causing item deflation.
Making a complete list on this will be hard. But a few common things is.
This might not be the correct term. But i like to call it frozen money
Frozen money is money that could potentially be used, but won't.
Example: I have a friends, who has 15.000 regals or more. He is leader of a faction with nice buildings, and he would never just leave the faction, because he cares about the members. He earns his money through a shop. He can even get the most items him self. Therefore he has nothing to use his money at. So the money is in the economy but won't be used.
Demand and supply.
Demand and supply works, by prices changing, based how wanted/needed, a thing is, and how easy it is to get. The only, way to get stuff, is to get it yourself, or buy it from other players. The only way to sell it is to other players. In other words here is no admin shop.
This kind of free market has it pros and cons. Everyone can sell and buy thing easily. Through trade chat. Some people even have a market stall. But this high competition, combined with the few items in minecraft, at almost everyone can get. Does mean they you can always just buy it elsewhere.
Higher demand == Higher prices/Inflation
Lower demand == Lower prices/Deflation
Higher supply == Lower prices/Item inflation
Lower supply == Higher prices/Item deflation
How does demand change
I have certainly forgot, some Supply and Demand aspects. Tell me what i forgot.
How can we/the team change the economy.
These things will change the economy, so things cost more, because that is what most people want.
What happens if things cost more and inflation happens
What happens if things cost less and deflation happens
The Piketty phenomenon. Is when money and wealth is centralised on a few spots. Instead of everyone being almost even. The rich tend to get richer, and the poor to loose money. A great example of this it some people having 100.000+ regals. So even if e average amount of money is high. The money is just in a few spots, and the average person won't spend more.
This combined with frozen money can cause some issues, related to money flow.
Even if we succeed to add money sources, if this and frozen money happen. Not much is going to change. Therefore I suggest that new items, creating new markets is what we need at the moment.
That is about it. Feel free to say what i missed, or ask questions. If you have suggestions how to make the economy better or more interesting. Fell free to post a link. I would prefer discussing, specific ideas in a seperate thread.
Instead of just flaming or blaming anyone. I would prefer people to come with constructive feedback, telling what was wrong and why. Or telling why something should be added also be considered.
The prices are (almost) always falling. Many people complain about that. I make this post to tell people how the economy works, and ideas on how to make prices raise.
Remember minecraft economy, and IRL economy, doesn't work the exact same way.
This is an OOC document written by madus from The Bank of Cissa
Money inflation
Money inflation is when the amount of money raise. As an effect of that, most prices raise.
Commonly refereed to as "inflation".
Money deflation
Money deflation is when the amount of money fall. As an effect of that most prices fall.
Commonly refereed to as "deflation"
Item inflation
When the amount of some items raise. As an effect of that the prices on those items fall.
Commonly refereed to as "Item inflation" or "Resource inflation"
Item deflation
When the amount of some items fall. As an effect of that the prices on those items raise.
Commonly refereed to as "Item deflation" or "Resource deflation"
Money sources
This is where new money comes into the economy. This cause inflation.
- New players. By completing a starting quest, new players gain 200 regals.
- Returning players. People who have money, the rejoins the server.
- Voting. By voting you can get money. Read more here.
- Premium. Premiums get 750 regals per month. THIS IS REMOVED
- MassiveTickets. Team members can gain some money by completing tickets. read more here.
- Killing mobs. Killing mobs can give you money. Read more here.
Money sinks
This is when money gets removed from the economy. This causes deflation.
- LWC. It costs 10 regals, to protect a chest door etc, using LWC.
- Faction cration. It costs 2000 regals to create a faction.
- Rent. Is costs money to rent a house or market stall in regalia. Read more here.
- Creating, faction warzones. Read more here.
- Players leaving. When a player that has money leaves the server, he/she can't spend money.
To read more about these money sinks and sources. Check the official documentation.
Item sources
This is when new items/resources come. Causing item inflation.
Making a complete list on this will be hard. But a few common things is.
- Mining
- Fishing
- Excavating
- Woodcutting
- Farming
- Killing mobs
- Voting
Item sinks
This is when new items/resources gets used. Causing item deflation.
Making a complete list on this will be hard. But a few common things is.
- Using tools.
- Eating food.
- Throwing thinsg out.
- Drinking potions.
- Armour getting used in combat.
- Building
- Crafting, especially useless things such as name tags.
- Smelting
- Feeding pets.
- Things getting used/broken/lost in RP.
This might not be the correct term. But i like to call it frozen money
Frozen money is money that could potentially be used, but won't.
Example: I have a friends, who has 15.000 regals or more. He is leader of a faction with nice buildings, and he would never just leave the faction, because he cares about the members. He earns his money through a shop. He can even get the most items him self. Therefore he has nothing to use his money at. So the money is in the economy but won't be used.
Demand and supply.
Demand and supply works, by prices changing, based how wanted/needed, a thing is, and how easy it is to get. The only, way to get stuff, is to get it yourself, or buy it from other players. The only way to sell it is to other players. In other words here is no admin shop.
This kind of free market has it pros and cons. Everyone can sell and buy thing easily. Through trade chat. Some people even have a market stall. But this high competition, combined with the few items in minecraft, at almost everyone can get. Does mean they you can always just buy it elsewhere.
Higher demand == Higher prices/Inflation
Lower demand == Lower prices/Deflation
Higher supply == Lower prices/Item inflation
Lower supply == Higher prices/Item deflation
How does demand change
- The more money people have, the more they can buy. Meaning higher demand
- The less items cost the more people can buy. Meaning higher demand
- The more uses the items has. Example new redstone device gives redstone more uses, therefore more people can and want to use redstone. When prices are too low, this won't happen. Because it would require a high price change. Example, if a stack of redstone costs 2 regals. A price change would be 1 regal more 50%
- People can get it themself. If people can get it themself they won't buy. Decreasing the demand. So if everyone on the server had their own wood farm, prices on wood would fall a lot. But if nobody got their won wood, the price would rise a lot.
- The more things cost. The more people will try to make it and sell it.
- The easier it is to make. The easier it is to get a lot. Therefore more people will try to make and sell it.
- The harder it is to start, the less people will start to make it. Lowering the amount of potential suppliers. Even if it is easy.
I have certainly forgot, some Supply and Demand aspects. Tell me what i forgot.
How can we/the team change the economy.
These things will change the economy, so things cost more, because that is what most people want.
- Making it harder to get, everything. It might encourage people to specialise, and people may not be able to get everything themself. (The last thing can heavily boost the economy).
- Add more item sinks. Name tags, creative gates and such could cost more. especially now when everyone might be able to create them.
- Adding more money sources or increasing the existing ones.
- Remove money sinks, or lower how much they sink.
- Expensive crafting recipees, to useless things. Such as custom blocks that only has aesthetic functionality.
- New items, to the market. So people can't create everything themself.
- Replace money sinks with item sinks.
- Replace item sources with money sources.
What happens if things cost more and inflation happens
- It will be easier to get lots of money. Because the things you sell gives more money. (Number wise, the money is worth less)
- Server sales like factions. Will cost less, the actual price won't change (maybe the team decides to do so), but it will be easier to get the money. Therefore owning a shop is more profitable, because of low rent.
- Small changes in the economy, can happen more frequently. And the market will respond to even the smallest changes in supply or demand.
- You can't earn money just by not spending them (because 1 regal is more worth today than a year ago). Actually you can earn money just by keeping your diamond (That is much harder than keeping money, if you go inactive).
What happens if things cost less and deflation happens
- If i leave the server for a year. My money is more worth when i coma back than when i left
- The market, can't easily respond to minor changes in supply and demand. Because a price change on 1 regal would be a huge price change.
- Server side sales, like factions, is a huge amount. Owning a shop is less profitable, because of high rent.
- It will be harder to earn lots of money. (Number wise, the money is worth more)
The Piketty phenomenon. Is when money and wealth is centralised on a few spots. Instead of everyone being almost even. The rich tend to get richer, and the poor to loose money. A great example of this it some people having 100.000+ regals. So even if e average amount of money is high. The money is just in a few spots, and the average person won't spend more.
This combined with frozen money can cause some issues, related to money flow.
Even if we succeed to add money sources, if this and frozen money happen. Not much is going to change. Therefore I suggest that new items, creating new markets is what we need at the moment.
That is about it. Feel free to say what i missed, or ask questions. If you have suggestions how to make the economy better or more interesting. Fell free to post a link. I would prefer discussing, specific ideas in a seperate thread.
Instead of just flaming or blaming anyone. I would prefer people to come with constructive feedback, telling what was wrong and why. Or telling why something should be added also be considered.
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