Assembly Hall

CSM Representatives, please consider directly asking CCP to have a moment's thought about value:

Value is not some philosophical ideal. At its core, value is a simple function of mathematics. It can be reduced to a very simple equation:

Value = Demand / Supply.

Observe that with this model, if supply is constant and demand increases, value increases. Likewise, if supply is constant and demand decreases, value decreases.

On the other side of the coin, if demand is constant and supply increases, value decreases. Likewise, if demand is constant and supply decreases, value increases.

More advanced manipulations, where delta values of supply and demand are compared, are possible with only slightly more mathematical ability. The model will remain consistent regardless, and reliably accurate in a predictive sense.

Where these principles apply directly to goods, they also apply to the professions surrounding the harvest or manufacture of those goods. This is not just a problem that can be resolved by hoping for equilibrium. New players rely on a vibrant economy when they select a career path. New miners in-particular probably don't want to hear that nobody's mining anything right now because there is a supply glut. I feel comfortable in asserting that this is an intuitive glimpse into the new player's psyche.

Lately, it seems that certain design elements might be losing sight of this fundamental principle. Supply seems to have less and less barriers to successful acquisition on many, many fronts. Nowhere can this be argued moreso, however, than in high-security space.

On behalf of Eve players and independent of partisan bias, I wish to invite the CSM and ultimately CCP to run the thought experiments using the model above. I believe that given the chance, anyone will find this equation's predictive value to be highly accurate. Beyond that, I think these principles should serve as a guide for future development. The devaluation of entire professions is a serious matter and should be taken as such by every player in Eve if we want to keep this game's economy (both virtual and real) healthy for the long haul.

Should CCP inquire as to methods of modulating supply and demand, I believe risk to be one of the best methods imaginable. Hopefully the CSM does, too.

Thank you for your consideration.

TL;DR: Risk is good for business.

When there is risk impeding the collection of resources, supply uptake is naturally inhibited. This ensures higher prices, meaning higher value. It also ensures that successful miners are more highly valued by association. Because the ore they mine and the ice they harvest is more valuable, so is their profession as a whole. Its contribution grows due to the dynamics risk invokes on supply and demand. When risk is high, supply goes down and demand goes up. That's good for business, unless you fail. Obviously if you fail, though, you're contibuting to the health of the economy by helping to keep prices high until you manage to succeed.

Or so the equation says.

I've +1'd both of your comments. Thanks for the feedback and the questions.

Please explain the mechanism which is devaluing ISK if it is neither supply nor demand related.

Thanks.

You seem to describe a situation where the supply of ISK is on a runaway trajectory.

Even ISK is subject to the foibles of supply and demand, however. That means it, too, has value.

As your inflationary picture proves.

You wield that equation of yours like a bludgeon, but I think your grip on it is faulty. You are simultaneously arguing that inflation is running wild while arguing that the value of minerals is dropping so far that new miners can't make a living at mining. The markets don't support you.

However...in order for your argument to be valid, there must be abundant evidence of out-of-control inflation. Or even significant inflation. However, there is no such evidence; the price of T1 ships has barely budged since I started playing, and even the price of T2 has gone up by much less than 100% in five years. There is nothing to support a significant devaluation of ISK, or a market glut of minerals.

Where did the OP copy/paste this from?

It's said that if you truly understand a subject, you would be able to explain it in the most simplest terms so anyone can understand. The fact that the OP can't do that heavily implies that he himself doesn't truly understand what he's talking about.

Which leads to the obvious conclusion that he must have copied it from somewhere and pasted it here in a thread. So OP, where did you copy/paste this from?

There is a Net gain of 25 trillion isk into the economy every month.....
There is also a major influx of raw materials (from moon mining, belt mining, NPC markets, and mission loot).
There is also a major outflux of raw materials (destroyed ships primarily).

If there is a net influx of isk into the economy while the raw materials balance out (i.e. influx = outflux), then the value of isk decreases, and the isk-value of raw materials increases.... Since nearly all goods are constructed from raw materials, they then have an isk-value change even if supply and demand remain the same.

In other words, the eve economy is far more complex than you make it sound...

Nobody said I wanted my Dominix to be cheaper.

In fact, I'd like to see mining be such a valued profession that it were worth doing it at your keyboard paying attention in an effort to not fail, thereby reaping great reward.

You know, the way it should be. Instead of Default Easy Mode.

Default Easy Mode will create a supply glut, regardless of whether ISK devalues or not.

That's a recipe for economic disaster...