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Where does the ISK go?

Author
Frost Mistress
Angel Heart Ammo Co.
#1 - 2011-11-14 07:29:34 UTC
What are the isk sinks in the game? Seems to me that there should be piles and piles of ISK by now with no real sink. At least none I see.

Ships get blown up yes, but the ships where sold by players so while the ships owner lost ISK, ISK was not removed from the game. Menerials are mined and sold by players with litle sinks minus some brooker fees and usage fees. Where does all this cahs go? Is it that a few over eager traders and manufactures are sitting on trillions and trillions of ISK? That one day they can introduce to the market and screw all of EvEs economy? Ssay give every player on 1 trill is and watch T1 Frigates start going for 50 Mil a pop.

Just wondering where the balance is with isk sinks and how the mony that comes in to EvE leaves EvE.

Don't let my frosty appearance and cold attitude fool you. Once you get to know me you'll find I'm a complete and total * 

Goodgodyourface
Republic Military School
Minmatar Republic
#2 - 2011-11-14 07:58:39 UTC
Frost Mistress wrote:
What are the isk sinks in the game? Seems to me that there should be piles and piles of ISK by now with no real sink. At least none I see.

Ships get blown up yes, but the ships where sold by players so while the ships owner lost ISK, ISK was not removed from the game. Menerials are mined and sold by players with litle sinks minus some brooker fees and usage fees. Where does all this cahs go? Is it that a few over eager traders and manufactures are sitting on trillions and trillions of ISK? That one day they can introduce to the market and screw all of EvEs economy? Ssay give every player on 1 trill is and watch T1 Frigates start going for 50 Mil a pop.

Just wondering where the balance is with isk sinks and how the mony that comes in to EvE leaves EvE.


Example with random numbers, don't freak out:

1.) Player buys battleship for 100mil ISK. Insures for full coverage.
2.) Player buys 50mil ISK in modules.
3.) Ship gets
a.) Killed by rats, wreck out in the middle of nowhere
b.) Killed by players, some loot is recovered and maybe salvaging is done, but some stuff is inevitably lost
4.) Player gets ISK back for ship, but loses
a.) 50mil ISK in modules (- whatever was recovered, if anything)
b.) However much the implants in their head was worth
c.) Any ammo, cargo, etc. that was in the ship and not looted

That's where the money goes. Implants, and loot lost in wreckage.
Tekota
The Freighter Factory
#3 - 2011-11-14 08:13:28 UTC
To be honest, most of what is listed there is not the destruction of isk but the destruction of minerals.

Isk sinks are any time you pay, with isk, an NPC corp for any good or service. So, sales tax, brokers fees, LP store purchases, T1 BPO purchases, office rental fees, insurance paid for but not claimed upon etc.

Just wondering where the balance is with isk sinks and how the mony that comes in to EvE leaves EvE.

That one is trickier, I guess this will always only ever be known (if it is) by CCP. My only sure fire hunch is that more money must be coming into eve than leaving but the ratio would be a complete guess.
Lexmana
#4 - 2011-11-14 08:16:08 UTC
If I remember correctly is station services (repair, broker fees, manufacturing etc) the biggest ISK sink. Then we have NPC corp taxes and everything sold by NPC orders (skill books, BPOs) and I believe a few others. To few and to little.

We need more ISK sinks.
Goodgodyourface
Republic Military School
Minmatar Republic
#5 - 2011-11-14 08:18:15 UTC
Tekota wrote:
To be honest, most of what is listed there is not the destruction of isk but the destruction of minerals.

Isk sinks are any time you pay, with isk, an NPC corp for any good or service. So, sales tax, brokers fees, LP store purchases, T1 BPO purchases, office rental fees, insurance paid for but not claimed upon etc.

Just wondering where the balance is with isk sinks and how the mony that comes in to EvE leaves EvE.

That one is trickier, I guess this will always only ever be known (if it is) by CCP. My only sure fire hunch is that more money must be coming into eve than leaving but the ratio would be a complete guess.


It's still disappearing ISK, since we don't all barter... someone paid ISK for that ore/minerals, and while the chain may be a long one, it still comes down to how much is floating on the market or in peoples' wallets in liquid assets.
Tekota
The Freighter Factory
#6 - 2011-11-14 08:21:06 UTC
Goodgodyourface wrote:


It's still disappearing ISK, since we don't all barter... someone paid ISK for that ore/minerals, and while the chain may be a long one, it still comes down to how much is floating on the market or in peoples' wallets in liquid assets.



It's isk disappearing from your wallet for sure - but it's isk going into someone elses wallet (eg a miner). Now there's some sales tax applied to that transaction sure (which is an isk sink) but otherwise you're merely shuffling isk from one player to another.
Goodgodyourface
Republic Military School
Minmatar Republic
#7 - 2011-11-14 08:42:22 UTC
Tekota wrote:
Goodgodyourface wrote:


It's still disappearing ISK, since we don't all barter... someone paid ISK for that ore/minerals, and while the chain may be a long one, it still comes down to how much is floating on the market or in peoples' wallets in liquid assets.



It's isk disappearing from your wallet for sure - but it's isk going into someone elses wallet (eg a miner). Now there's some sales tax applied to that transaction sure (which is an isk sink) but otherwise you're merely shuffling isk from one player to another.


All right, my bad. I'll admit my ignorance on this one.
JitaJane
Science and Trade Institute
Caldari State
#8 - 2011-11-14 09:38:04 UTC
It is a common misconception not only in Eve but in the world in general. Destruction of resources does not fight inflation. It actually increases it if you think about it. A bunch of people buy ships to get their pew-pew on. their isk ends up in different wallets yet remains in the general economy. They destroy some of their own and others resources. The same isk (plus a little extra from insurance) is still on the market. There are just less resources (the ships and modules destroyed) for that isk to be spent on. Linky:
http://en.wikipedia.org/wiki/Parable_of_the_broken_window

The up side as far as isk sinks go is that the new demand for ships and modules becomes demand for BPOs and LP items which are isk sinks as they are purchased from NPCs. The oldmyth that war is good for the economy (out in the real world where there are not infinite supplies of both labor and goods mines go dry, those killed in battle do not respawn in pods) is just supply and demand. Wars consume both materials and manpower making both scarse so the demand for both rises.

90% of of the time my posts are about something I actually find interesting and want to learn more about. Do not be alarmed.

Frost Mistress
Angel Heart Ammo Co.
#9 - 2011-11-14 09:45:33 UTC
Yes that is what I ment ISK leaving not just going to another player. Hmmm so most be the later there are some sitting on piles and piles of ISK. The Taxes and the like don't zap enough, as whoever trades needs to make up the differance to make profit so More rats will be killed to generate more isk so it never will.

I guess getting killed by rats is the biggest one. Unclaimed insurance yes but I think as a whole insurance is an isk generator rather than a sink. Maybe new players that bought large amounts of isk with PLEX rage quiting and thus taking unspent ISK with them?

Oh well just something I have been wondering about.

Don't let my frosty appearance and cold attitude fool you. Once you get to know me you'll find I'm a complete and total * 

Tekota
The Freighter Factory
#10 - 2011-11-14 10:49:34 UTC
Not so sure sales/broker taxes are as insignificant as you may think.

Typical daily volume of Tritanium in Jita is 30 billion units - multiply by 3.3 and we get an isk volume of 99 billion isk. Finger in the air guess of typical tax revenue being 1% (0.5% sales tax and c. 0.5% brokers fees - this is probably a lowball guess) and we see just under 1 billion isk removed every day just on Trit sales and just in Jita.

Use the same guestimation on PLEX and we see a 2500 daily volume at c.430m apiece for an isk volume of over 1 trillion isk per day - 1% of this being 10 billion isk.

So sales of just Trit and Plex, just in Jita, are potentially removing around 11b of isk from the economy every day.


As already noted above, rats will generally (beyond, eg. LP store bought faction mods) be destroying materials rather than isk but I agree that insurance is going to be a net faucet.

Players quitting with isk in their wallet is, as you say, perhaps the only isk "sink" in that it holds the potential for being realised later on wheras other things we refer to as isk "sinks" are more isk shredders.
Cyniac
Federal Navy Academy
Gallente Federation
#11 - 2011-11-14 11:21:16 UTC
According to the last QEN (Q4 2010 - would be nice to have a new one) the top ISK sinks in the game are as follows:

1) Skillbooks
2) BPOs
3) LP Stores (you pay ISK for certain items in LP stores)
4) Transaction Tax
5) Brokers Fee



Hope it helps. It is interesting that a lot of this is driven by the caps/supercaps economy as both the skillbooks and the blueprints needed for that are fairly expensive.
Tekota
The Freighter Factory
#12 - 2011-11-14 11:57:21 UTC
That is interesting, I'd forgotten about that (and concur, would be nice to see QEN, but apparently unlikely tor return). Just been re-reading; a lot of the skill book purchases in that quarter were put down to the learning skill removals (and people buying new skills with the released SP) and a lot of the BPO purchases were Noctis - 2 trillion isk spent on Noctis prints in one month!

I would guess that at the very least we can quadruple that figure come the release of the tier 3 BC prints.
AureoLion
The Scope
Gallente Federation
#13 - 2011-11-14 12:02:16 UTC
Remember that you don't need the isk to be stable, you merely need the ISK influx to be on par to the goods influx.
If 50b (completely made up number) are mined / moon mined / LP stored / dropped / manufactured / PI'd / whatever creates goods a day, you also need 50b isk being created a day (through bounties, insurance, more bounties, mission rewards, did i mention bounties?)
Tau Cabalander
Retirement Retreat
Working Stiffs
#14 - 2011-11-14 15:00:45 UTC  |  Edited by: Tau Cabalander
Examples of ISK Sinks:
* Office rental fee.
* Corp and alliance creation fee.
* Alliance maintenance fee.
* Sovereignty payments.
* Buying anything from NPC: skill books, BPO, reactions, PI command centers, etc.
* PI import / export taxes.
* Broker fees.
* Transaction taxes.
* Contract fee.
* CSPA fees.
* Customs penalties.
* Clone upgrades.
* Repair costs.
* Insurance fees.
* Wardecs.

Examples of ISK Faucets:
* Mission rewards.
* Insurance payouts.
* Selling anything to NPC: Sleeper tags, faction tags, DNA, etc.
* New characters (5000 ISK?).
Kara Books
Deal with IT.
#15 - 2011-11-14 16:42:55 UTC
hmm...


---Number1 ISK SInk in the game the destruction of faction goods in the game, some examples:

+6 implants run a Cool 250 mill iskies.
Full implant sets run from 150M for low and close to 1000 mil for some highgrade sets, Le'Rich get podded to you know.

+3, +4 and +5 implants cost a bit to buy out from NPC stations!
all other implants also cost ISK

The list goes on and on for all the other faction stuff like Navy heatsinks etc etc...

---Ship insurance
---loss of loot to rats
---NPC sold goods
---Broker fee's & sales taxes
---POSIBLY---Banned bot accounts (usually with epic heaps of ISK)
---Abandoned accounts.


---- I guess there is more, but I gotta run.
Diomedes Calypso
Aetolian Armada
#16 - 2011-11-14 17:22:06 UTC
Far and away the largest "sink" is people quitting the game with billions of isk in their inactive accounts.

There was a developer post on this.. can't link it right now.

People can use semantics to argue whether or not the isk is really gone because it's still there on innactive accounts...

...they'd be right if you defined sink in one way, wrong if you defined it another way.

Even if you don't want to use the word "sink" people retiring with isk in their wallets certainly is a huge factor in the amount of isk in circulation at any given time and without that large portion of isk being made inactive the amount of bounties being paid out without nearly as many NPC isk sinks would create an inflation like nothing we've seen to date.

.

Kara Books
Deal with IT.
#17 - 2011-11-14 18:11:08 UTC
Diomedes Calypso wrote:
Far and away the largest "sink" is people quitting the game with billions of isk in their inactive accounts.

There was a developer post on this.. can't link it right now.

People can use semantics to argue whether or not the isk is really gone because it's still there on innactive accounts...

...they'd be right if you defined sink in one way, wrong if you defined it another way.

Even if you don't want to use the word "sink" people retiring with isk in their wallets certainly is a huge factor in the amount of isk in circulation at any given time and without that large portion of isk being made inactive the amount of bounties being paid out without nearly as many NPC isk sinks would create an inflation like nothing we've seen to date.


Reinforcing your idea, some of these people might have quite due to passing away.
yumike
Doomheim
#18 - 2011-11-14 18:21:42 UTC
Kara Books wrote:

+6 implants run a Cool 250 mill iskies.
Full implant sets run from 150M for low and close to 1000 mil for some highgrade sets, Le'Rich get podded to you know.


That is not an isk sink, That's an item desctruction and you likely gave that isk to another player to purchase said item.
ISK sink's are things like skill books where all the money is given to an npc and destroyed.
Isk sink's are NOT giving it to another player, that is merely a transfer.
Frost Mistress
Angel Heart Ammo Co.
#19 - 2011-11-15 05:17:07 UTC
yumike wrote:
Kara Books wrote:

+6 implants run a Cool 250 mill iskies.
Full implant sets run from 150M for low and close to 1000 mil for some highgrade sets, Le'Rich get podded to you know.


That is not an isk sink, That's an item desctruction and you likely gave that isk to another player to purchase said item.
ISK sink's are things like skill books where all the money is given to an npc and destroyed.
Isk sink's are NOT giving it to another player, that is merely a transfer.


I think the refrance was to the implans bought through LP stores which run high price tags as well. These are a very common buys as you can normally fill a buy order right away and make a large profit. I might even say it is the most common way to turn LP into quick isk> (Ammo might bet this out but you normally have to make a sell order as buy orders will net you a loss most of the time)

Don't let my frosty appearance and cold attitude fool you. Once you get to know me you'll find I'm a complete and total * 

Scrapyard Bob
EVE University
Ivy League
#20 - 2011-11-15 16:40:38 UTC
Short rule of thumb:

Faucet: ISK flows from an NPC wallet into your wallet
Sink: ISK flows from your wallet into an NPC wallet

(Anything else, such as inter-player trading is neither a sink nor a faucet, other then fees/taxes on the transaction.)
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