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Isk inflation

Author
Roxanne Dallas
Sebiestor Tribe
Minmatar Republic
#1 - 2016-03-23 17:28:18 UTC  |  Edited by: Roxanne Dallas
I have heard it said at multiple fan feasts that isk inflation is a big problem, amoung other thing like moving the isk in rat's etc into items another way to do it could be if it's really bad having to pay a royalty fee for every run of a blue print.

Because apart from blue prints which are bought with an isk cost from a LP store ships and module losses are not actually an isk sink from the game because when you buy a ship you are giving that money to someone else there for it is not an isk sink apart from the transaction tax, brokers fee and market Escrow which are encored at the point of sale rather small and happen at the point of sale.

It's probably not bad enough to warrant a hole new isk sink but if it ever does get that bad I don't think it's a terrible way to go about it.
Nevyn Auscent
Broke Sauce
#2 - 2016-03-23 17:58:00 UTC
Doesn't exist.
Ignore people pretending it's a big problem, if anything we are having deflation currently.
ShahFluffers
Ice Fire Warriors
#3 - 2016-03-23 18:00:31 UTC
Methinks you need to look at the numbers.

LP stores, blueprints, skillbooks, and market taxes are HUGE isk sinks. The issue is that the ISK faucets that exist are MUCH larger by several orders of magnitude.

Putting more fees at the manufacturing level only serves to drive up prices and not hit the people who regularly tap the ISK faucets (hint: the largest ISK faucets are NPC bounties and Incursions).
Rowells
Pator Tech School
Minmatar Republic
#4 - 2016-03-23 18:39:04 UTC
That is a very long sentence.
Agondray
Avenger Mercenaries
VOID Intergalactic Forces
#5 - 2016-03-23 19:05:48 UTC
ShahFluffers wrote:
Methinks you need to look at the numbers.

LP stores, blueprints, skillbooks, and market taxes are HUGE isk sinks. The issue is that the ISK faucets that exist are MUCH larger by several orders of magnitude.

Putting more fees at the manufacturing level only serves to drive up prices and not hit the people who regularly tap the ISK faucets (hint: the largest ISK faucets are NPC bounties and Incursions).


.........biggest.....that's the only isk faucets unless you know something else that creats isk...and no selling to other layers is not one, only selling trade goods to NPCs would count.

We should have a NPC market created for every item of a certain stock, if someone wants to buy all of that stock and sell it, then they only get a small boost of isk and that isk to buy the npc stock is removed, a set number would have to be determined and a restock time, maybe not so frequent as asteroids

"Sarcasm is the Recourse of a weak mind." -Dr. Smith

Zhilia Mann
Tide Way Out Productions
#6 - 2016-03-23 19:06:18 UTC
There are already production fees in place that get paid to NPCs (over and above the taxes). How would this be different?
Teckos Pech
Hogyoku
Goonswarm Federation
#7 - 2016-03-23 19:54:55 UTC
Roxanne Dallas wrote:
I have heard it said at multiple fan feasts that isk inflation is a big problem, amoung other thing like moving the isk in rat's etc into items another way to do it could be if it's really bad having to pay a royalty fee for every run of a blue print.

Because apart from blue prints which are bought with an isk cost from a LP store ships and module losses are not actually an isk sink from the game because when you buy a ship you are giving that money to someone else there for it is not an isk sink apart from the transaction tax, brokers fee and market Escrow which are encored at the point of sale rather small and happen at the point of sale.

It's probably not bad enough to warrant a hole new isk sink but if it ever does get that bad I don't think it's a terrible way to go about it.


Not sure punishing the people not creating ISK is the best solution.

This is why I think macroeconomics is just complete bullshit. Looking at aggregates and changing the game based on those aggregate numbers can lead to outcomes you did not intend. Sure there might be macroeconomic effects and even problems, but IMO there only microeconomic solutions. Want to deal with the ISK sources...deal with the ISK sources, stop trying to hammer on the people not creating the ISK because it won't stop the people creating the ISK and may inadvertently hamper your efforts to stem ISK creation.

So, at his last (I think) Fanfest presentation Dr. EyjoG was quite wrong to suggest CCP focus on ISK sinks.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

elitatwo
Zansha Expansion
#8 - 2016-03-23 22:02:06 UTC
Agondray wrote:
ShahFluffers wrote:
Methinks you need to look at the numbers.

LP stores, blueprints, skillbooks, and market taxes are HUGE isk sinks. The issue is that the ISK faucets that exist are MUCH larger by several orders of magnitude.

Putting more fees at the manufacturing level only serves to drive up prices and not hit the people who regularly tap the ISK faucets (hint: the largest ISK faucets are NPC bounties and Incursions).


.........biggest.....that's the only isk faucets unless you know something else that creats isk...and no selling to other layers is not one, only selling trade goods to NPCs would count.

We should have a NPC market created for every item of a certain stock, if someone wants to buy all of that stock and sell it, then they only get a small boost of isk and that isk to buy the npc stock is removed, a set number would have to be determined and a restock time, maybe not so frequent as asteroids


You know what? We did have that back in the day and every isk that was created could also be destroyed again at an NPC station.
Hardly anyone remembers but there used to that thing that was called base-price.

Every module, mineral, ship and other things you could collect or harvest was sold and bought by a NPC station. EVE grew and the idea was to put all that market stuff into human hands - what could go wrong??

Since I was a noobie back then, I didn't say anything but I knew it would turn out this way. Maybe not everything that could should be put into the hands of humans..


But back to isk sinks. Now with repeating myself for the sixth time in a decade (!!!!!!!!!!!!!!!!!11111111111111eleven) the LP stores can be great isk sink if some tiny changes would be made.

Eve Minions is recruiting.

This is the law of ship progression!

Aura sound-clips: Aura forever

Corvald Tyrska
Valknetra
#9 - 2016-03-23 22:05:17 UTC
Agondray wrote:
ShahFluffers wrote:
Methinks you need to look at the numbers.

LP stores, blueprints, skillbooks, and market taxes are HUGE isk sinks. The issue is that the ISK faucets that exist are MUCH larger by several orders of magnitude.

Putting more fees at the manufacturing level only serves to drive up prices and not hit the people who regularly tap the ISK faucets (hint: the largest ISK faucets are NPC bounties and Incursions).


.........biggest.....that's the only isk faucets unless you know something else that creats isk...and no selling to other layers is not one, only selling trade goods to NPCs would count.


There are others but they are smaller. To quote a post from a few years back: https://forums.eveonline.com/default.aspx?g=posts&t=303160

Common ISK faucets (the list is not complete):
- NPC bounties
- Mission rewards and bonuses (when they are in pure ISK).
- Selling criminal dog tags and navy insignias to NPC buy orders. You can recognize NPC buy orders by looking at the "Client" column in your Market Transactions window. If your client is an NPC corporation, that's an ISK faucet.
- Selling Overseer's Personal Effects to NPC buy orders.
- Selling Sleeper Components to NPC buy orders (for example "Sleeper Data Library");
- Ship insurance payouts. Even if you did pay for the insurance, the amount of ISK that you get when your ship is destroyed is greater than the amount you have invested in the insurance itself;
Teckos Pech
Hogyoku
Goonswarm Federation
#10 - 2016-03-23 23:37:27 UTC
elitatwo wrote:
Agondray wrote:
ShahFluffers wrote:
Methinks you need to look at the numbers.

LP stores, blueprints, skillbooks, and market taxes are HUGE isk sinks. The issue is that the ISK faucets that exist are MUCH larger by several orders of magnitude.

Putting more fees at the manufacturing level only serves to drive up prices and not hit the people who regularly tap the ISK faucets (hint: the largest ISK faucets are NPC bounties and Incursions).


.........biggest.....that's the only isk faucets unless you know something else that creats isk...and no selling to other layers is not one, only selling trade goods to NPCs would count.

We should have a NPC market created for every item of a certain stock, if someone wants to buy all of that stock and sell it, then they only get a small boost of isk and that isk to buy the npc stock is removed, a set number would have to be determined and a restock time, maybe not so frequent as asteroids


You know what? We did have that back in the day and every isk that was created could also be destroyed again at an NPC station.
Hardly anyone remembers but there used to that thing that was called base-price.

Every module, mineral, ship and other things you could collect or harvest was sold and bought by a NPC station. EVE grew and the idea was to put all that market stuff into human hands - what could go wrong??

Since I was a noobie back then, I didn't say anything but I knew it would turn out this way. Maybe not everything that could should be put into the hands of humans..


But back to isk sinks. Now with repeating myself for the sixth time in a decade (!!!!!!!!!!!!!!!!!11111111111111eleven) the LP stores can be great isk sink if some tiny changes would be made.


Ratting back in the day was not like it is now with anomalies and system upgrades. We probably want some growth the the ISK supply, but what we are currently getting is probably a bit much. Thankfully we don't have well developed credit markets in game.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

elitatwo
Zansha Expansion
#11 - 2016-03-24 01:23:44 UTC
Teckos Pech wrote:
...
Ratting back in the day was not like it is now with anomalies and system upgrades. We probably want some growth the the ISK supply, but what we are currently getting is probably a bit much. Thankfully we don't have well developed credit markets in game.



I remember well. Loosing a battleship like a Raven (base price 108m isk) was a very huge deal since it took a good while to even make 100m isk.

What is sad that nullsec has the highest ingame money printing income you can make. Class 5 and 6 wormholes follow but you have to get to high or lowsec first to get the isk, so it is not a guarantee you'll have a payday.

Class 4 could be good but they have problems with the sites (yes I am talking data and relic sites) with leaves class 3 wormholes with good-ish income, yet they have the same very high risk of not getting payed.

Some trolls from nullsec that have never been in highsec are making silly assumptions of unstoppable income in highsec but that only applies to incursions.

Level 4 mission income is a tad low for the new ship prices they dumped upon us but at least you have the LP stores close, which is my biggest complaint.
All the very poor third world developing citizens of nullsec that will all starve horribly if the LP stores were all of a sudden accessible and they would ditch the tag collecting task instead of a fixed (high) price tag.

Well, I am always happy to pay a station for gear instead of someone with wild imagination of what a tag should cost in her / his / it's dreams.

Eve Minions is recruiting.

This is the law of ship progression!

Aura sound-clips: Aura forever

Anhenka
The New Federation
Sigma Grindset
#12 - 2016-03-24 03:10:48 UTC
So.... Per the February economic dump.

http://content.eveonline.com/www/newssystem/media/70094/1/10_-_hO35OM1.png

In February, we had 71.5 Trillion isk in Faucets, and 49.5 Mil in Faucets, a difference of about 22 Trillion, out of an economy of 950 Trillion, or 2.3% inflation.

This was partly counteracted by 11.3 Trillion worth of isk on accounts going deactivate from the start of month. No this does not mean EVE is dying. As players naturally leave the game, this number increases (to a large negative number), and is only counteracted by people reactivating accounts. Unless a ton of players who have played previously reactivate their accounts to a greater degree than people leaving the game, it will always be negative.

With that factored in, it's only an 10.8 Trillion rise in the isk supply, or 1.1% inflation.

Now given that Citadel will release both a very strong immediate sink (Citadel BPO), and a much higher continued sink (50% increase in transaction tax, plus massive increase in NPC broker fees, I'd actually expect a negative inflation for a while until markets shift to Citadels, and then inflation at an even lower rate then current.

Think roughly .5% monthly inflation or less, depending on how much trade stays in NPC station. Only around 1/15th of current trade volume needs to stay in NPC stations in order for NPC broker fee sink to remain at current levels.

TLDR: All data currently supports inflation not being an issue atm.
Teckos Pech
Hogyoku
Goonswarm Federation
#13 - 2016-03-24 04:14:07 UTC
Anhenka wrote:
So.... Per the February economic dump.

http://content.eveonline.com/www/newssystem/media/70094/1/10_-_hO35OM1.png

In February, we had 71.5 Trillion isk in Faucets, and 49.5 Mil in Faucets, a difference of about 22 Trillion, out of an economy of 950 Trillion, or 2.3% inflation.

This was partly counteracted by 11.3 Trillion worth of isk on accounts going deactivate from the start of month. No this does not mean EVE is dying. As players naturally leave the game, this number increases (to a large negative number), and is only counteracted by people reactivating accounts. Unless a ton of players who have played previously reactivate their accounts to a greater degree than people leaving the game, it will always be negative.

With that factored in, it's only an 10.8 Trillion rise in the isk supply, or 1.1% inflation.

Now given that Citadel will release both a very strong immediate sink (Citadel BPO), and a much higher continued sink (50% increase in transaction tax, plus massive increase in NPC broker fees, I'd actually expect a negative inflation for a while until markets shift to Citadels, and then inflation at an even lower rate then current.

Think roughly .5% monthly inflation or less, depending on how much trade stays in NPC station. Only around 1/15th of current trade volume needs to stay in NPC stations in order for NPC broker fee sink to remain at current levels.

TLDR: All data currently supports inflation not being an issue atm.


I would say that is likely an upper bound too. Even a guy out there ratting away and who makes say a billion ISK isn't going to turn around and spend it all. Some of it will sit in his wallet...so it's effect on the economy is essentially nil.

Basically, ALOT of ISK in the game is the EVE version of being buried in a can in the backyard.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

Nevyn Auscent
Broke Sauce
#14 - 2016-03-24 05:26:46 UTC  |  Edited by: Nevyn Auscent
ShahFluffers wrote:
Methinks you need to look at the numbers.

LP stores, blueprints, skillbooks, and market taxes are HUGE isk sinks. The issue is that the ISK faucets that exist are MUCH larger by several orders of magnitude.

Putting more fees at the manufacturing level only serves to drive up prices and not hit the people who regularly tap the ISK faucets (hint: the largest ISK faucets are NPC bounties and Incursions).

Please try again. The largest two isk faucets are actually NPC Bounties & WH Blue loot/Overseers effects. & they are not orders of magnitude larger than the sinks.

For raw numbers. http://content.eveonline.com/www/newssystem/media/70094/1/10_-_hO35OM1.png
However remember that this is relative to the amount of resources being produced, so if the rate of isk growth is the same or lower as the rate of resource growth (such as mining) then we are probably experiencing deflation even if the total amount of isk is growing. So contrary to Anhenka's claim, an increase in isk is not a direct correlation to inflation. This can also be established by most T1 production items remaining stable in price unless directly impacted by a CCP change over the last year, not rising by 1% a month, which over a year would have added more than 20 million to the price of a battleship.

Also remember that CCP are proposing taking that 6 trillion isk sink of broker fees & that 10 trillion isk sink of transaction tax and massively increasing it for at least the near future, making it almost certain that we are going to go into total deflation for the next while.
Anhenka
The New Federation
Sigma Grindset
#15 - 2016-03-24 06:16:42 UTC  |  Edited by: Anhenka
Nevyn Auscent wrote:
So contrary to Anhenka's claim, an increase in isk is not a direct correlation to inflation. This can also be established by most T1 production items remaining stable in price unless directly impacted by a CCP change over the last year, not rising by 1% a month, which over a year would have added more than 20 million to the price of a battleship.


If we are referring to inflation strictly as the textbook definition as a gradual increase in the cost of goods, that's correct.

I more meant in the sense that it is usually used by EVE players without a degree in economics, as the gradual increase of the total isk supply.

The cost of items remaining relatively stable has multiple potential reasons. Increasing production might be part of it, but since the total product in circulation would need to increase at the same rate (up and above losses, If I'm understanding this right), and I can't see that happening consistently, I'm more inclined to look elsewhere for another significant contributing reason.

In my opinion, it's more likely the large groups and wealthy individuals have been stockpiling isk in preparation for Citadels and the inevitable next great war (which might be kicking off right now, yay), siphoning it off into warchests and removing it from the general circulation.

The good old renter empires and moongoo fountains have been chugging away for a good while now, and without concentrated supercap construction efforts (while waiting for changes), and without any major wars in the past 6 months or so, I'd expect most of it has been getting squirreled away in preparation for future need.

And while I don't have the sort of processed data I would need to definitively back this up, a quick eyeball of the 1 year price data charts in game seem to indicate a less than 20%, but still statically significant increase in BS prices over the past year.

20%, no, but as a random guesstimate (also wow that's actually in the auto-correct dictionary), more like 5-6%. over the past year or so.

Could be wrong, I have no fancy programs scraping and collating that information for me. Just an eyeball of the various ship prices based off the Amarr market. Too lazy to fly to Jita right now. Too late. Will poke more at it in the morning.
Nevyn Auscent
Broke Sauce
#16 - 2016-03-24 10:06:35 UTC
Anhenka wrote:

If we are referring to inflation strictly as the textbook definition as a gradual increase in the cost of goods, that's correct.

I more meant in the sense that it is usually used by EVE players without a degree in economics, as the gradual increase of the total isk supply.

Could be wrong, I have no fancy programs scraping and collating that information for me. Just an eyeball of the various ship prices based off the Amarr market. Too lazy to fly to Jita right now. Too late. Will poke more at it in the morning.

Wrong use of terms should not be encouraged. Because it's wrong and creates false beliefs as to if there is a need for any solution.

And doing an eyeball of Jita markets since I am there, I can see 2 or 3 BS showing about a 5% increase, the rest are all flat or under what their year ago price was, and show a 10-20% fluctuation up and down as minerals move during that time.

The BS showing a sustained apparent increase are obviously the Geddon, the Raven which will have been influenced by changes to missiles and the timeline is about right on the price changes, and a slight uptick on the Apoc which may be getting pushed by the Navy Apoc doctrines being used.

The Maelstrom is showing a significant uptick in the last few weeks, which probably means it's getting a buff announced shortly and someone leaked some changes before they were announced, or someone is about to be using a large scale Mael doctrine. Since volume traded is also significantly up over the same time. So the Mael if it's a new doctrine is due to supply not adjusting to demand yet.

I.E. None of the BS in Jita are showing any inflation signs, just increased demand for a few newly popular hulls after their last changes.
Barrogh Habalu
Imperial Shipment
Amarr Empire
#17 - 2016-03-24 11:06:15 UTC
Nevyn Auscent wrote:
The Maelstrom is showing a significant uptick in the last few weeks, which probably means it's getting a buff announced shortly and someone leaked some changes before they were announced, or someone is about to be using a large scale Mael doctrine. Since volume traded is also significantly up over the same time. So the Mael if it's a new doctrine is due to supply not adjusting to demand yet.

To my knowledge, they weren't used much before, and now TEST started to get them for fleet usage. So it may be simpler than that.
Donnachadh
United Allegiance of Undesirables
#18 - 2016-03-24 14:23:41 UTC
Just going to throw this into the mix simply because I can.

The customs offices were at one point an ISK sink, but then CCP choose to remove them from the game, what affect did that one change have on the economy. Yes I know, in their current state they are not a faucet that is not my point, I simply refer to them as a lost ISK sink.

For ISK sinks why not think small and insignificant on an individual basis but large when applied game wide.
Say a 10 ISK per gate jump "toll", individually that would not add much to our expenses yet over time and all of the players in the game it would add up. Another would be a small "fee" or "tax" paid to have a ship in storage at a station say 1 maybe 2 ISK per day per ship, again not a significant amount on an individual basis but collectively over time. Yes I know neither of these taken as an individual idea would have a significant affect but that is my point. If we need more ISK sinks then they need to be a small amount paid by each individual but large when taken as a collected whole game wide.

Everyone is quick to point to the faucets as a problem and yet we all need a way to make ISK so we can afford to buy the things we want and add even more ISK to your wallet. So faucets are not a bad thing to have, what we need to look at are those that are completely out of line with the rest of the game. To illustrate this here is but one example from the linked chart.
The total ISK from bounties is 33.876 billion, if we assume (yes I know it is dangerous to assume) that amount is earned equally in high, low, nul and worm holes we get 8.469 billion ISK per area of the game and yet the Incursion community accounts for 11.245 billion. Given the extremely small sub-set of players involved in Incursions this income level is totally out of line with the rest of the game and should be a prime target if we need to reduce the faucets in the game.
Teckos Pech
Hogyoku
Goonswarm Federation
#19 - 2016-03-24 16:50:16 UTC
Anhenka wrote:
Nevyn Auscent wrote:
So contrary to Anhenka's claim, an increase in isk is not a direct correlation to inflation. This can also be established by most T1 production items remaining stable in price unless directly impacted by a CCP change over the last year, not rising by 1% a month, which over a year would have added more than 20 million to the price of a battleship.


If we are referring to inflation strictly as the textbook definition as a gradual increase in the cost of goods, that's correct.

I more meant in the sense that it is usually used by EVE players without a degree in economics, as the gradual increase of the total isk supply.


Heh, I tend to go with the Friedman view in that inflation is pretty much everywhere a monetary phenomenon.

Prices can change over time for a variety of factors such as say steadily increasing demand, or say improvements in technology reducing costs. Describing these as simply "inflation" or "deflation" is a bit strange as they are due to real effects not nominal.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

Teckos Pech
Hogyoku
Goonswarm Federation
#20 - 2016-03-24 17:27:21 UTC
The fact that we do not have well developed financial markets limits the impact of new ISK on the inflation rate. Still, I bet there is a correlation to ISK creation and inflation. Checking that with empirical data will be a challenge.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

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