How To Make Currency Work

[caketan]

From the way I see it, coins are 100% worthless in there current form as they are just considered metal. To create an effective currency you have to allow currencies to have unique identities and reputations. For example.

I am the Lawspeaker of Aurelia, and I decide to craft my awesome currency named Dong, to do this I first have to make the Dong Coin press, the game checks to see if Dong has been taken by anyone, if not I get to make it. I can then manufacture Silver Dongs, Copper Dongs, and Gold Dongs to my hearts content. I also have the sole ability to make more Dong Coin presses and hand them out to my trusted bankers.

After that all I have to do is buy up people's junk for my new Dongs and use said junk to do public works around Aurelia. Then I have started to circulate money. Example.

I, Cake_Tan have recently sold X for the amount of 5 q80 Silver Dongs. Some weirdo from a nearby village comes up wanting to buy X and has 5 q10 Durps. He is a fool for his Durps are made of a very impure silver, my awesome X are worth 40 q10 Durps, so he better pay up properly. (I don't actually know quality:value ratio so meh)

Now our rival village of BeakLand has started to smith a q80 Silver Anime, and they claim this Anime is worth the same as my Dongs! So the only choice is to go to BeakLand, kill them all, and get rid of any Anime Coin presses. How ever that is messy business.

Now to fix this coin rivalry it should be that a person needs a certain height of the Perception skill to be able to see the value of a coin.

Currencies are rewarded for uniformity. If those with high perception begin noticing that some animes are of a lower quality, they'll raise their prices in animes. The anime falls in value against the dong. The common folk with low perception have no way of knowing how much the anime they have are really worth, so they begin using the more reliable dong.
So if the minter tries cheating by devaluing his currency, he runs the risk of it becoming worthless. Example.

: Good day sir! May I purchase some of your cheese?
: Yes, what will you be paying with?
: Animes good sir.
: Alright, that will be 4 Animes.
: Here you go good man
: WAIT! These animes are not of the typical q20 variety, they are q10. That shall be 8 Animes total.
: Oh my, I shall spread this word at once!

So for every common folk, the word of The Empire of Aurelia and there awesome q80 Dongs is just accepted fact, and The Dong is a highly valued currency, while The Anime is just shotty work thats not as worth as much as The Dong. This would create a need for money handlers and exchange people probably, give people something fun to do.

[theTrav]

Coins as Currency will not work until a major faction decides they want to push it.

They are unlikely to do so unless there is something in it for them

[DatOneGuy]

Want it to work? Insist on it, use it. Use vending stands, use coins, period.

If people had things WORTH buying I'd consider it.

[Sobatsoku]

Currency is great, i know of a noble place in this game, where their is over 25 stalls that people use, ive spent tons there!. Also theirs another noble village that has stalls they put buckets of milk in, and we buy it with coins, once a day their 2 stalls are completely wiped out, if cows could milk faster it would be gone faster. Now the way to get coins to work, is allow each item in a stall to take more then 1 kind of coin! maybe 1g 4 silver ......50 cast. small numbers but you get the point. Lastly but not least, raw material would be nicely sold in stalls, items like cheese curd and such.

[Sobatsoku]

I am the Lawspeaker of Aurelia, and I decide to craft my awesome currency named Dong, to do this I first have to make the Dong Coin press, the game checks to see if Dong has been taken by anyone, if not I get to make it. I can then manufacture Silver Dongs, Copper Dongs, and Gold Dongs to my hearts content. I also have the sole ability to make more Dong Coin presses and hand them out to my trusted bankers.

And another thing, does this not crack anyone else up? How can you be a lawspeaker of a village you kill off haha?. Another thing, the choice of currency, DONG? lets play an age guessing game, i guess he is 7.

[TrooPeRZz]

I am the Lawspeaker of Aurelia, and I decide to craft my awesome currency named Dong, to do this I first have to make the Dong Coin press, the game checks to see if Dong has been taken by anyone, if not I get to make it. I can then manufacture Silver Dongs, Copper Dongs, and Gold Dongs to my hearts content. I also have the sole ability to make more Dong Coin presses and hand them out to my trusted bankers.

And another thing, does this not crack anyone else up? How can you be a lawspeaker of a village you kill off haha?. Another thing, the choice of currency, DONG? lets play an age guessing game, i guess he is 7.

Lol, Only dumbass are lawspeaker of the village they decide to wipe out.
But, Yeah this made me crack up.

[burgingham]

People really don't seem to understand how stable currencies work. You cannot just throw money out in the world and hope it works...
First of all you need a trusted, regulatory institution which can enforce their rules for everyone in its catchment area. And who would that be?

[sabinati]

bottleneck?

[Sobatsoku]

Sure you can, who said anything about a world currency? Your talking about the stuff in real life their trying to do, all countries 1 currency. Now lets bring it back to small scale and scattered currency, My village loves milk, we have a village that needs metal. So solution, we throw currency towards their milk. Now, we have other stuff besides metal to trade, we build a stall in their village. Now its a matter of supply and demand, we fill the stalls with things that we know they will buy. This is the start of currency being used right here folks. Basically what im trying to point out, is small scale currency flow and constant trade items are a way to use currency, but its all about supply and demand. If you put shit items in your stalls, im not buying it, period.

[burgingham]

bottleneck?

They are a small community, very small. I don't think you can really apply all the economic laws for currencies to that scale, though I am by no means an expert here either. They kinda have that trusted institution being the community itself. Once it becomes more anonymous it gets harder I suppose.