Currency counterfeiting

[SnuggleSnail]

I think markets being allowed to pump&dump shitcoins made out of lead or having unreasonably high tax on their coins is bad for the game as markets typically end up having a monopoly. Last world one market was using lead coins that were constantly being hyper-inflated from the market owners printing absurd quantities of their own currency to buy everything good at the market + 70% tax on making new coins.

IMO, you should be able to use a coin on a coinpress to copy that coin, but if it's not the original you should lose 10% of the input materials. That allows markets to take a considerable tax if they choose, but not abuse their monopoly.

[noindyfikator]

Bad idea, u can make ur own market so there won't be monopoly.

[The_Lich_King]

Sometimes its spooky how economics in this video game mimic reality

[azrid]

Create a better experience by creating a market.
The market with fair currency always wins in popularity.
Your proposed changes will do more harm than good.

[SnuggleSnail]

[...]

The market that did this, to whom every person who has replied negatively to this thread belongs, had a much lower tax during the time there were other competing markets. When they gained a monopoly the tax went to 70% pretty quickly. Them being limited to a 10% tax would not have changed what market making plan. 10% of all trade is a pretty absurd amount tbqh

[jock]

Just to be clear, not all processes of making coins at a lower rate are coin taxes. If you are using coins CORRECTLY your coin is the value more than the metal you're selling it in. as gold becomes more abundant you should sell less gold coins to gold to prevent gold coin inflation and have enough goods and services to stabilise the coin's value.

No point selling 100 gold coins to 1 bar or your entire market would need to shift ALL prices at the rate gold deflates in value over the course of the game. Rather you should value your coins against themselves or something of relatively fixed value e.g token.

[Kaios]

Rather you should value your coins against themselves or something of relatively fixed value e.g token.

Isn't it a bad thing when in-game economies are being influenced by or revolving directly around real money value item(s)? Personally I think so but I would love to hear other opinions on the matter.

[azrid]

Rather you should value your coins against themselves or something of relatively fixed value e.g token.

Isn't it a bad thing when in-game economies are being influenced by or revolving directly around real money value item(s)? Personally I think so but I would love to hear other opinions on the matter.

It is bad but its impossible to get away from it now.
We had a chance for a fresh start without tokens with steam server being separate originally but that was always a pipedream.
Theres some valid incentives to keep tokens in trade that have been discussed before.

The market that did this had a much lower tax during the time there were other competing markets. When they gained a monopoly the tax went to 70% pretty quickly.

If only someone didn't bugraid a competing market we could have avoided this.
Also this is a link to molemall a market you sieged with an exploit last world.
https://www.havenandhearth.com/forum/viewtopic.php?f=81&t=75270
This greatly contributed to the monopoly of whateverbay.
I sadly contributed to whateverbay market's predatory practices by not having molemall to shop at anymore.

I think the lesson here is that actions have consequences.

[Fostik]

As a former small market (up to 30 traders) owner I made a conclusion that coin printing should be constant with certain rules:
* Each good brought to market by traders or clients extends the size of economy that this market creates with it's currency
* If you print too few currency to cover new goods that joins your economy you cause deflation - currency becomes expensive and scarce to obtain. Prices may remain stable but there will be no trades happen.
* If you print too much currency (and let's be honest making economy extractive for your own benefit) you cause inflation - currency becomes too cheap, coins does not worth their value, and prices are always rising.

It's quite hard to control, while focusing on stability you might cause traders has less trades, and clients to have less purchasing power. Moreover you don't have enough metrics about trades happening on market, so your actions can never be accurate. Of course precious metals helps a lot to justify currency value, also adding natural sink for gold and silver coins being melted back to bars by people.
My final thought were that small inflation should always take place, as game qualities often develops prices should develop with it in some kind of way.

Mentioned Whatever Bay market had both problems on my memory, I remember I criticized it for dead economy and no trades happening due to scarcity of coins, as well as above mentioned cases when it printed too much currency not taking care of it's coverage.

It's of course hard to control and administer, and make sure that person running market in good faith and not to take advantage of it, but my opinion that proper market should either use precious metal currency, and base prices on it's costs, or, in case of using common metal currency afforce currency with token exchange in both directions. After all if you're running economy right you'll never sink out of tokens that way.

[Kaios]

It is bad but its impossible to get away from it now.
We had a chance for a fresh start without tokens with steam server being separate originally but that was always a pipedream.
Theres some valid incentives to keep tokens in trade that have been discussed before.

I just don't see how it's going to be beneficial for the health of the game over the long-term. Jorb and loftar may not care now provided the income from them is steady enough but eventually there will be so many tokens in the game that they are going to have to create sinks for them in other ways (could already be the case). Sweeping the problem under the rug doesn't make it go away, that's just hiding it from plain sight. By ignoring this now and for so long they are simply creating more work for themselves in the future.

Without some sort of intervention from developers, game currencies that become "backed" by a real world currency result in endless inflation of the game currency over the life of the game/world.