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[Enjin Archive] Currency deflation - The end of Minetown?
Started by [E] simworld

MTCurrency is meant to be hard to get as its meant to be obtained by donating or voting often. If you vote daily you can earn just under 30k in credits a month which is a lot. We also do events which include credits as prizes (We are working on more regular events so please be patient)

I think it would be an extremely bad idea making credits more easily obtained, the way the system is at the moment is fine.

EDIT: Also you've given an example of the spawners. Honestly, thats pretty natural. All items trading prices increase/decrease depending on the overall need of the item. I remember a few months ago there was an inflammation on the demand of obsidian. Members were paying up to 128g for 64 obby, it calmed down after the need for it dropped. The market will eventually find another item everyone will want to buy and sell, its a natural process.
I'm wondering when shops that sell items for gold/diamonds will start to raise prices? The price of diamonds is now half of what it was in December (the best price I could find diamonds for back then was $50; the cheapest diamonds today are $25). In theory, shops that sell items for gold/diamond should have doubled their prices so that they would get paid the equivalent of $50 for the same amount of material, but I haven't seen that happening.
Craftermaster, your concept is right <object class="emojione" data="https://resources.enjin.com/1489581540/themes/core/images/emojione/svg/1f600.svg?0" type="image/svg+xml" standby=":d">:d</object>

but....how about gold? how about iron? 3g = 1d, 30i=1d,

another issue is.....Minetown map is bigger than our planet....@.@

I still thinking Using gold/diamond = barter system. <--- a little bit old economic <object class="emojione" data="https://resources.enjin.com/1489581540/themes/core/images/emojione/svg/1f61b.svg?0" type="image/svg+xml" standby=":p">:p</object>
There are many factors that contribute to the current decline of the market and currency. IMO the main reason is spawners. Many people want to setup farms and traps so they can feed their stores with supplies cheaply. What do they need? Credits!

So now you have 10 shops that all want credits so they can get spawners and now you have competition. I have been selling diamonds and my price is $30 not cause I want it to be but because I have to compete or else no credits for me. People will not shop and /warp ishop simply cause I am a nice guy. The consumer always wants the lowest price possible. Pretty simple.

If we wanted to bring the prices up to there former glory we would need all shop owners to come together as a collective and establish a market price. Until this happens prices will continue to drop until the supply is reduced causing prices to raise.

Lets face it people will always undercut.
There are advantages and disadvantages for both currency's

Gold iron and diamond are good as you can only get them in Bulk by trading and stuff

Instead of just having to vote which makes it way to easy

The problem is that iron gold and diamond is used for other stuff like armour

With credits I personally dislike them, it makes it too easy to get stuff if it would be used as a main currency

I see it as more of a reward for voting not a currency

With. The duck shop

You can make it use diamond gold and iron

Warp 9022 for a tutorial

I never use creds for player trading only for cred shop...
Interesting guys.....as long as we control the number of spawner, the market price of others will increase??? um....i start getting lost
MT credits, and donating/voting rewards in general represent an uncontrolled influx of currency onto the market. It's comparable to printing more paper money than your nation can back with hard currency (Gold and silver bullion). This deflates the value of your currency in a situation referred to as inflation. The situation, if not checked, will eventually make MineTown into a virtual Wiemar Republic, you'll need a truckload of diamonds just to buy a stack of dirt. It's essentially an unfortunate matter of economics.

There are two easy solutions, one is to simply remove the uncontrolled influx and instead rely on the levels of currency that are currently in circulation. Eventually this would begin to raise the value of currency as it was slowly removed from the server for various reasons. Creating a one way currency exit to counter the one way entrance of currency would also be able to solve the problem; however, it would be difficult to implement in a manner that would remove currency from the market at the same rate it is introduced.

The first option is certainly easier, but could be seen as a strain to the server, as donors would have less reason to donate and voters would have less reason to vote. I would suggest that the currency rewards for donating are removed entirely and instead replaced with additional commands, vault upgrades, etc. This way, donors should still have reason to donate even without currency compensation. In fact, many donors would probably prefer to have additional commands as opposed to the decreasingly valuable MT credit. Voters, instead of receiving credits as compensation, could instead receive small donor packages for a certain number of votes per month, or perhaps a limited use of some command based upon the number of votes. I'm not entirely familiar with the voting system, so someone with more expertise in that area could potentially suggest a better option.

A shorter term solution would be to halve the value of the Credit, and/or halve the number received per vote/donation. This would not cork the leak in the dam, but would help to slow the rate at which the flood is occurring until a better solution is found. One could even change the use of credits to be redeemed for certain building materials or special blocks instead of currency.

Though it would be nice to imagine we can simply continue pouring credits into the market, it will be the death of MineTown to do so. As prices inflate, new players will find it increasingly difficult to obtain the currency needed to purchase any items, leading to frustration and abandonment. What's more, trading with actual currencies of diamond, gold, and iron will become impossible due to the extreme numbers required; an inventory full of diamonds is hardly convenient to carry around, and having this number of diamonds in circulation makes obtaining high-level tools and armors absurdly easy.
I think there's another way of solution is... Bank able to buy back diamond @ 120MT. Bank sell diamond 150MT, and buy back diamond 120MT. It means...all members trade in gold or MT, end up will go to bank and trade for MT. Yeah Yeah.....I think it's the best way of doing that.

Bcos once bank set the price of buy back 120MT for diamond, believe the economy will goes back to original very soon.
Now this is a little off the deep-end but what if we just keep the CS as the number one Dia and Gold seller i do like private buyers and sellers but to keep minetown community from plummeting into a deep depression even though its completely impossible but to make minetown a little more realistic have CS run all dia and gold sales or run everything that has to do with Credits i hardly know anyone who pays in credits most people pay with dia and gold. i think its the best way to get around on minetowns Community in sales associated linguistics
MY Opinion: Don't let players do MT to Gold/Diamond conversions, THAT is what ruined it.