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EVE Mutual Fund
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Teckos Pech
Hogyoku
Goonswarm Federation
#21 - 2016-05-18 22:04:06 UTC
The problem is that there are no mechanisms by which to assure investors that their funds will be safe. The only way to do it is via reputation, and even there there is nothing to stop one from cashing in on their reputation at some point once the pool of funds becomes large enough.

There are no courts, there are no laws, and even checking up on where the fund's will be invested will problem.

The only way I could see it working is if you put up a bond (basically collateral) with one of the third party services like Chribba who appear to care more about their reputation in game than just about anything else. If the fund gets "too big"--i.e. the ISK value of the fund exceeds the value of the collateral you could then disperse some of that ISK back to the shareholders to bring the fund's ISK value back in-line with the collateral.

Maybe, and this is a big maybe, after a long enough time you could get away with the fund having an ISK value larger than the collateral, but only after a long time of building up that reputation.

"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
Dante Audelesi
A.N.S.W.E.R
#22 - 2016-05-18 22:05:31 UTC
Teckos Pech wrote:
The problem is that there are no mechanisms by which to assure investors that their funds will be safe. The only way to do it is via reputation, and even there there is nothing to stop one from cashing in on their reputation at some point once the pool of funds becomes large enough.

There are no courts, there are no laws, and even checking up on where the fund's will be invested will problem.

The only way I could see it working is if you put up a bond (basically collateral) with one of the third party services like Chribba who appear to care more about their reputation in game than just about anything else. If the fund gets "too big"--i.e. the ISK value of the fund exceeds the value of the collateral you could then disperse some of that ISK back to the shareholders to bring the fund's ISK value back in-line with the collateral.

Maybe, and this is a big maybe, after a long enough time you could get away with the fund having an ISK value larger than the collateral, but only after a long time of building up that reputation.

That's exactly the problem I was encountering when I was writing my plan. Hence, I will relegate this idea to the dustbin for the time being. I'll see you all around. Fly safely. o7
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