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Explanation: What is ISK per m3 mining?

Author
Mos7Wan7ed
Hardcore Industries
#1 - 2013-07-31 02:31:46 UTC  |  Edited by: Mos7Wan7ed
What is ISK per m3 mining?

This is a system strictly for SOV Nullsec. Put basicly, all the ore mined across the entire corps is pulled together, some cases compressed, refined, then moved and sold to market. The logistics is done by the most qualified, active, and trusted pilots so it gets done right. Players get paid from the earnings based on how many m3 they mined.

This is a very purist way to run a corps. A way where the corps wallet can operate with only enough of a balance for emergencies and not much more. The corps only ever needs to tax miners based on what it needs are for that week and no more. The biggest point is that this allows members to directly affect the rate they are taxed. This motivates miners in all sorts of ways that benefit themselves and the corps.

How can miners affect their income and how does it benefit the corps?

A corps in 0.0 has a number of fixed monthly bills. If all the ore they mine gets taxed against fixed monthly bills, then the more ISK their ore is worth the more of that ISK they get to keep. Because of this fact, members become highly motivated to get the maximum potential payout back from the corps each week. Say you have a small industry corp and fixed bills are 100 Million and miners mine 500 Million. They are taxed 20%... ouch! What if they help to recruit more members, increase the index level a little so they get more high end ores, and next time they mine 1 Billion ISK. They just dropped the amount they are taxed to 10%, nice... Next time they continue to recruit, they get some full time Rorqual boosts, they help pilots get into hulks, and they gained another index level. Now their ore is worth 1.5 Billion. Through recruiting, members supporting members, and teamwork their corp was able to affect how much they can mine as a corps and now the tax just dropped to 6.6%. In the process the corps as a whole benefited in increased membership, membership capabilities, average member wallet size, regular weekly income, and overall corp activity. This can allow for the corp to expand corps assets to include towers, limited SRPs, more systems, or take on various other tasks with a greater ease.

Is it really better ISK than everyone mining for themselves tho?

In almost every respect and instance yes. One pilot can not sit in a system and mine the best ore in the game for very long. Asteroids in gravimetric sites are finite in quantity and capacity so this will not take long to do. You will almost always be sharing those asteroids with others so it will take even less time. You will almost always not have the correct ships, perfect skills, and RL time to take the ore mined and turn it into ISK without some type of loss. This is where the corps normally steps in and will buy your ore at 10-25% below Jita mineral value so it can pay bills.

Don’t forget all of those instances in null sec where you warp to the grav site and find that you were the last one to come to the table and someone ate all the fried chicken!!!

In an ISK per m3 scenario everyone gets paid the same ISK for every m3 of ore you mine. With activity, skills, and teamwork corps can increase how many m3 they mine. This allows them to offset the corps tax rate. That increased activity also increases index levels that spawn more grav plexes which in turn increase the ratio of high end ores. That too decreases corp tax. Eventually the average ISK per m3 value will be higher than over 90% of the ore in the game. At that point, you can feel free to come to the table whenever you want because “Oh Happy Days” the table is always full of nothing but fried chicken!!!

So, how does it work.

Since it is an all or nothing system all miners must participate in the program. If people are able to mine high end ores in the same solar system and sell it from outside the ISK per m3 system then it devalues everyone else's work. For this reason, this system works best from control towers in systems that have no stations. Far enough from refineries it would be impractical for pilots to safely transport ore, as they mine it, to a station with a refineries. This is to keep the honest people honest.

Large ship assembly array hanger tabs are assigned to players through corp roles. One person per hanger tab and 6-7 pilots per array. You may want to keep one array free for a Rorqual to use to compress ores. If you have more than seven people you can also give roles for the same seven tabs to others but assign them to another array. This will give all members access to the same tab in all arrays and stations that are not “based out of” or “headquarters”. For this reason read-only access is recommended. These arrays hold 18.5 Million m3 that is shared across all tabs in the array. It will take days for seven hulk pilot to fill the array. Or, much less time if you have seven multi boxers that have 2-8 hulks each. It helps to balance the hulks across the arrays so some do not fill too often while others take weeks. Once the array nears full then the ore content in m3 can be recorded in a screenshot and/or on a spreadsheet. At this point the ore is in the hands of the corp logistics group and the members can continue to mine while they wait for payment.

Pilots can’t deal with readonly access to hangers?

If you need to restrict read-only to your array tabs to protect assets at stations, pilots may still want a location to store gear such as mods and crystals. I recommend they use anchored GSCs off the POS. If that is not enough, you can anchor corp hangers on a separate POS and allow their roles to give them access and have the running costs be included in taxes. If that is not enough, because one is a heavy multiboxer both pve and mining, then allow them to own and fuel a tower in system to store ships, mods, ammo, and ore they mine. Just give them very basic POS roles and set a shield password that logistics pilots will have access to.
Mos7Wan7ed
Hardcore Industries
#2 - 2013-07-31 02:31:59 UTC  |  Edited by: Mos7Wan7ed
How does this work in mixed corps with higher number of PvE pilots?

It would be unfair to ask miners to foot 100% of the bill. What you can do is total up the taxes collected from PVE activities with out of game apps like “evewalletaware” and then have the miners pick up the slack. After looking at the corps wallet long enough you could try and tax both the same percentage. 10% for PvE and 10% for Industry. You will almost always get more from the miners per person tho. Several forms of PvE can not be taxed such as relic and data sites, or those DED plex and escalation drops that have mods worth 200-900 million ISK. At the same time tho those are mostly group activities that miners with the right skills can join in on.

What if the corps or a member needs minerals for a project?

Easy enough... If the minerals are needed for the corps project then they are not sent to market and sold. This brings down the ISK value of the minerals and that loss is spread across all the miners. if the item is designated a build job for profit then ISk can be recouped and sent back in to the ISK per m3 system over several payouts. If it is something like a SRP or corp Dread then the cost is eaten. Some attempts should be made to also increase PvE taxes to match during those cycles.

If a single miner wants minerals destined for Jita then he can just buy them, at the the would be sale value, before the minerals depart for the market. The ISK gets added to the overall mineral value and is calculated into the ISK per m3, just as if it was sold at market. If several pilots are interested in minerals then they can place buy orders within the corp and they can be filled first come first serve. You could even have corps members bid for the minerals. Highest bids for purchase getting the first lot of minerals.

What if you have large number of builders?

If you have lots of pilots mostly interested in manufacturing and fewer interested in ISK you may find it more difficult to please everyone. These are two opposed ways of mining in the game. One way means you mine the most valuable ores and only mine less valuable when required to flip a grav plex. The other way, mining lots of low ends, some middle of the road, and very few high ends for general production. This is a little harder to manage but it can be done.

Pilots interested in mining for manufacturing purposes (builders) will mine to hangers the same way as ISK miners but when it comes time for the corps to collect ore theirs is recorded differently. Any ores that hold an ISK per m3 value below the corp’s ISK per m3 average will have a mineral tax added to them. This mineral tax would be at the same rate that ISK miners have received for their ores in the past. So if ISK miners have been taxed 6.6% than 6.6% of the builders minerals mined is keep by the corp for use or sale, unless builders want to buy that 6.6% or more back. The remainder after tax is contracted to them. Any ores that have a value above the ISK per m3 average will go into the normal ISK per m3 system and get added in with the rest. If the builders need some of the high ends then they can also purchase them at the same value as the corps will be selling it to Jita, just like mentioned above. If they don’t need as much as they placed in than builders get a payout that is higher than the cost they paid in for the minerals that they bought back. Builders can use that extra ISK for books, prints, to purchase other minerals from corps they are lacking, or other products they may need for future build projects. Cause in the end, even a pure manufacturing member needs ISK for stuff.

Builders are a bonus to a ISK per m3 system.

Builders assist in helping the industry index by mining like all the other members. The large sums of low ends do not enter the ISK per m3 system so they don’t drag it down. They only put in high end minerals that increases the ISK per m3. They can not mine all the minerals they need without avoiding the ISK per m3 system. At the same time, they can use the ISK per m3 system to mine a relatively small amount of high ends and buy larger sums of low ends to speed up the time spent in the belts which speeds up production time and personal profits.

In closing...

I tried to come at this from as many directions as possible and to solve as many inequalities as possible. Is it 100% fair to all involved? Probably not, and won't ever be, but it is as close to fair as you can get. It goes a long way to closing loopholes miners tend to use to escape helping the corps pay bills. It goes a long way to allow a corps, who maybe has lost face, to show members they are not just a bunch of greedy slave drivers that do nothing but moan and complain. It is done so in a way that can be open and that motivates miners to work together to improve each other, keep themselves motivated, and benefit the corps.

I have Directed three corps and CEO’ed one that used this and I always have people that doubt it. I always had people that would say it was somehow unfair. It sometimes made people think about quitting. In the end tho, it always ended up being a positive thing that got people motivated and keep them active.

So why not try it out?

If you want to try this in your corp and you’re not sure how then ask me. I’ll be happy to help you figure it out.
Mos7Wan7ed
Hardcore Industries
#3 - 2013-07-31 02:32:08 UTC  |  Edited by: Mos7Wan7ed
Is mining in 0.0 worth it in the end?

Is it profitable????

Mining Scordite and Pyroxeres is worth 180-181 ISK per m3.
A perfectly well managed industry index of 3 yields 199 ISK per m3. A 9% increase in potential profit.
A perfectly well managed industry index of 4 yields 206 ISK per m3. A 12% increase in potential profit.

All this increased profit can easily be sucked up by the nullsec costs involved in doing business.

Pros of nullsec:

- You can get boosts from a sieged Rorqual witch is better then an Orca, but only if their is fuel available.
- You get standings and intel that totally gets rid of the destroyer ganking you have in empire.
- No war decs to worry about.

Cons of nullsec:

ISK wise
- Station 5-10% refine take can not be reduced by skills.
- Some stations have 35% refineries you lose even with max skills and implants.
- Corps have 2-10 Billion ISK of additional overhead they must get from members, one way or another.
- Costs & risk of the logistics of getting unused high end minerals to a market that will offer a reasonable price and buy it in short order (Only Jita offers this).

Risk wise
- Destroyer gankers get replaced by cloaky campers some with cynos fit to them that can sit idle for days.
- War decs are replaced by SOV war.
- You have the risks of assets in conquerable outposts and POSs you can be locked out of or can be destroyed.
- NPCs are a real threat that comes in waves of BC and BS every 20 minutes or less and can randomly lock anyone in the site. They can take out poorly tanked/skilled exhumers with ease.
JonnyRandom
#4 - 2013-07-31 13:58:38 UTC
Very interesting system, and well explained. Thank you.
P3po
Perkone
Caldari State
#5 - 2013-07-31 14:31:15 UTC  |  Edited by: P3po
We used this for almost 2 years and I could not find any other better or "honest" system.

There is no fighting about who got when online and who mined how much of high ends etc.

The only disadvantage is that this is not working when you share system with other corps. Because they can be cherrypicking your ore :)

The good thing for us was that we were far from high sec, so people were never "tempted" to move the ores outside on their own and sell it.

And you could "track" it when you see someone is mining like crazy and he don't put much ore into the pool.
Mos7Wan7ed
Hardcore Industries
#6 - 2013-07-31 19:59:01 UTC  |  Edited by: Mos7Wan7ed
P3po wrote:
The only disadvantage is that this is not working when you share system with other corps. Because they can be cherrypicking your ore :)

And you could "track" it when you see someone is mining like crazy and he don't put much ore into the pool.


Pick your partners well and sharing systems is much less of a hassle if you do enough research going in to it. Pick corps that have no industry interests, and are not recruiting. These are gonna be your PvE corps of 30+ or more. Talk with the CEO a few times. Check for recruitment spamming in the recruitment channel or on the forums. Check for recruitment ads as well. Do they say the same things as the CEO says? If so then you probably have your self a safe bet.

Partnering up with a PvE corp in a rental situation, offer to split the rent. Good chance you will profit more from the deal then they will. Or, if it is a class A alliance where rent is not required, offer them a token amount of ISK or the option to buy minerals or ships at a discount. Some times if you can offer a few cap builds a month then you get access to a system cheaper then you might think, assuming you already have the BPOs.

Tracking members that wanna skirt the system is always easy to find. You really can't hide a Rorqual in siege mode at a tower compressing ore. Even if they do manage to sneak it past, it will eventually show as a whole in the spreadsheet. A drop in m3 amounts or mineral ratios that make it obvious. If you can't nail down who it is without a inquisition then your best bet is to set arrays to read-only. Some times it takes more to keep the honest people honest. Some will get frustrated you have blocked their attempts and just leave and solve your problem for you.
P3po
Perkone
Caldari State
#7 - 2013-08-01 10:25:09 UTC
Yea, that is the thing, if it is corp that is not mining, it is easy.

But we wanted to do some mining in Fountain for a while, and the rules with whole HBC was that you can't kick people from the system ... so if there is someone who just fly around the mining systems and mine only arkonor etc. you can't do anything about it. That could make trouble with this kind of payouts.
Lucas Kell
Solitude Trading
S.N.O.T.
#8 - 2013-08-01 10:38:30 UTC
The system can be played however. Some people will stock an amount of cheap or in the station from personal mining ventures, then mine high end ores while out on mining ops. Then when they drop it in, they instead drop in the low end ore and keep the high end. This way they get to trade high end ore for their low end ore, and the isk/m3 hit balances out across the rest of the fleet. The bigger the fleet, the lower the personal impact.
There are other issues too. A high yield miner with alts could easily smash out the ABCs before anyone else gets that much of them, so he would probably lose out on a system that averages the ore. but then if he chooses not to take part, he then still mines the ABCs further lowering the average isk/m3.

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P3po
Perkone
Caldari State
#9 - 2013-08-01 11:19:42 UTC  |  Edited by: P3po
Yea, of course .... we had miner who was mining 60-70% of whole corp mining output, but .... we had a rule, either you participate or you are out of corp.

And since we did not take big cut from Jita prices and the service was good (all logistics etc. from corp wallet) people never had problem with this system.

But from the experience, those big miners were usually payed most accurate, since they mined a lot, they had to mine low end ores too, since there was not enough high end for them. So they payment was averaged. The people who "donated" most were the miners who just got online for hour or two and mined mostly high ends.

Also the high yield miner won't be able to keep on mining only ABC if he is alone, he needed help from the people who might log in after DT that will mine mostly low end ores to keep industry level up or to reset the large gravimetrics. And these people would never mine if they will never get to touch the high ends :) So this way people are motivated to mine the less valuable ores when needed (refreshing gravimetrics, farming up industry level, etc.)

Also as I said, we had the advantage that players who wanted to "trick" the system had no way how to get the ore out of 0.0, so it was not an issue in our case (5 capital jumps to nearest high sec was good for something :D )