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Simple solution to inflation


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Posted this before in the general discussion on "inflation" but there were no response. Hope to generate more responses here.

A simple solution: raise mana cap + proportional trade tax + drastically decrease item value scaling

Raise player mana cap to 2b, then implement a tax structure that generates diminishing returns for players per unit increase in the value of trade.

Proposed structure A (increment based):
tax inc by 1% per 100m increase in trade amount for the 1st 500m, thereafter by 2.5% per additional 100m capped at a min amount of 5% and max of 25%.

Ie: a casual trading 30m to buy his gear will be taxed at min amount of 5% = 1.5m
A semi-casual trading 100m will be taxed at 6% = 6m
A semi-hardcore trading 500m will be taxed at 10% = 50m
A hardcore trading 1b will be taxed at rate of 22.5% = 225m
Hackers/super duper rich trading >1.1b will be taxed at max rate of 25% = assume 2b trade then 500m tax

Proposed structure B (tier based):
1st tier 0-20m : untaxed
2nd tier 21-50m: 10%
3rd tier 51-100m: 12.5%
4th tier 101-300m: 15%
5th tier 301-500m: 17.5%
6th tier 501-800m: 20%
7th tier 801-1000m: 22.5%
8th tier >1001m: 25%

1st obvious effect: combats inflation and stabilizes the economy.

2nd effect: Everyone will have lesser purchasing power, but casuals will be affected much less than hardcores as they are more price sensitive and trade at lesser amounts. Mana inflow through endgame content will be mitigated by mana outflow through tax, reducing the income disparity between the rich and the poor in the medium to long run.

This also allows for mild expansion of the mana supply (read: mild inflation) so that it will encourage consumption by all players.

At the same time, hardcores will enjoy a higher mana cap to facilitate high-end trade.

I have always felt that scaling gear upgrade costs to tavern resale value is not a good idea. Upgrading gear should only be done to "upgrade" gear, not generate mana tokens. It is important to remove mana tokens by drastically down scaling items value otherwise trade will just occur in mana tokens to avoid tax.

1st tax structure is more complicated but scales better to trade needs. 2nd tax structure is less complicated but there will be many trades that fall "in-between" the current tier and the next/previous tier (ie 200m is taxed the same as 101m and 300m using Structure B)

Comments?

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Well when the player base expands and intraplayer interactions, facilitated by a trading platform, become more frequent and more voluminous you end up with a fledging virtual economy.

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I find it sad that there's an "economy" in this game in the first place.


That is the signs of a developing community. If there was no economy then there would be no market for us to trade in.

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I assume you're talking about Trendy, because Open already has mod tools. No one is going to worry about cost or grinding in Open. Mad Mana Map has seen to that.

Nothing the game generates is as good as what I can make with mod tools anyway.

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+1

The game desperately needs some way to curb inflation and this seems legit. Even if it were flat 15% on everyone it would be better than nothing.

Perhaps additionally reduce the mana endgame maps generate by 20% as well.

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With the mass reduction in item tavern values, mana tokens based on anything else but non-elemental damage (from what I know) are now worthless.

Hence, to deal with the large amount of players with near max mana and to restore confidence in the market, it is a good time to introduce taxes!

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