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ISK Faucets and Sinks for Dummies

Author
Roisin Saoirse
Doomheim
#21 - 2012-06-02 23:41:59 UTC
Kiteo Hatto wrote:
I can't believe there is actually a civil discussion going on here! What is this ?!

Give it time. Blink
Headerman1
Ministry of War
Amarr Empire
#22 - 2012-06-02 23:59:23 UTC
Roisin Saoirse wrote:
Headerman1 wrote:
Then just like a mirror, you have the 'sink' from that isk coming in; people buying expensive items and getting them blown up. I think ships blowing up is definitely an isk sink, as the net result is a big loss minerals and modules out of the universe.

This is the misconception I was trying to address my original post. As I said, minerals, ships and modules have nothing to do with ISK sinks. The money that paid for those items is still in circulation, it isn't removed from the system.

ISK faucets and sinks deal in ISK injection/removal only - not minerals, ships, ammunition, modules, PI goods, moon goo or exotic dancers. Blink


This is very true.

But, mineral prices may cause a bigger isk sink in the form of bounties/missions etc, the cost to convert the created isk into ships and modules is a lot higher now, due to there being less minerals available.

It may just be me but i struggle to see how CCP wants to reduce the isk flow by making people create more isk.

It may just be me failing to properly comprehend all this though!
Tippia
Sunshine and Lollipops
#23 - 2012-06-03 00:08:22 UTC
Headerman1 wrote:
But, mineral prices may cause a bigger isk sink in the form of bounties/missions etc, the cost to convert the created isk into ships and modules is a lot higher now, due to there being less minerals available.
That's still just a transaction between players — the actual ISK sunk to create those ships (by using NPC build slots) remains the same and isn't affected by minerals. Granted, the transaction comes at a slight cost in the form of fees and taxes, but it's not “a lot higher”, even with the bump in taxes we saw in Inferno.

Also, Bounties and missions are ISK faucets, and you do not “convert“ ISK into ships and modules except in a few very specific circumstances. For every-day industry, you're mainly just shuffling ISK around a lot.
Tallian Saotome
Nuclear Arms Exchange Inc.
#24 - 2012-06-03 00:08:38 UTC
Headerman1 wrote:
Roisin Saoirse wrote:
Headerman1 wrote:
Then just like a mirror, you have the 'sink' from that isk coming in; people buying expensive items and getting them blown up. I think ships blowing up is definitely an isk sink, as the net result is a big loss minerals and modules out of the universe.

This is the misconception I was trying to address my original post. As I said, minerals, ships and modules have nothing to do with ISK sinks. The money that paid for those items is still in circulation, it isn't removed from the system.

ISK faucets and sinks deal in ISK injection/removal only - not minerals, ships, ammunition, modules, PI goods, moon goo or exotic dancers. Blink


This is very true.

But, mineral prices may cause a bigger isk sink in the form of bounties/missions etc, the cost to convert the created isk into ships and modules is a lot higher now, due to there being less minerals available.

It may just be me but i struggle to see how CCP wants to reduce the isk flow by making people create more isk.

It may just be me failing to properly comprehend all this though!

Simple question. Where does the isk go? Ignore materials, just think isk and absolutely nothing else.

If the isk goes to or comes from another player or player owned corp, it stays in the system and is neither a sink or a faucet.

You are overcomplicating, and that is what is causing your confusion. Just forget about everything but isk for the purposes of deciding if something is an isk faucet or sink.

Inappropriate signature removed, CCP Phantom.

Roisin Saoirse
Doomheim
#25 - 2012-06-03 00:16:22 UTC
Headerman1 wrote:
But, mineral prices may cause a bigger isk sink in the form of bounties/missions etc, the cost to convert the created isk into ships and modules is a lot higher now, due to there being less minerals available.

It may just be me but i struggle to see how CCP wants to reduce the isk flow by making people create more isk.

It may just be me failing to properly comprehend all this though!

::mashes face into keyboard::

Okay. It doesn't matter if a unit of Veldspar costs 5 billion ISK, it doesn't affect the overall reservoir of ISK within the economy, so you could buy 10 million units of it at that price and the amount of ISK in circulation remains almost static. All that happens is more ISK is moved between players within the 'basin' as it were. None is added to the economy and none (besides a tiny market transaction or contract cost - the 'sink') is removed.
Headerman1
Ministry of War
Amarr Empire
#26 - 2012-06-03 00:27:37 UTC
Ahhh yeah i understand that now :) Sorry!
Alphea Abbra
Project Promethion
#27 - 2012-06-03 00:29:32 UTC
While I completely agree that ISK sinks/faucets are as outlined here (Since I also value words keeping their original meaning and we make new words if we want to mean something new), the common perception that things are ISK "printing machines" are not as far-fetched as some might say.
Whether it is moon-goo, T2 BPO's or drone alloys (Neither of which injected ISK into EVE), they do result in value, which I think is the reason that some can and does confuse the two. Moon-goo is actually overall an ISK sink - in order to have POS'es ISK has to leave the game - but in terms of value it does create a lot. That value can be translated into ISK, and often quite a lot ISK. Since people with less interest in economy may use value and money interchangeably, I think this is where the confusion arises (Unless, of course, someone has something to gain by playing dumb).
It'd go something like this:
Moon goo = Value.
Since Value = ISK, then Moon goo = ISK.

That logic is flawed of course, but it's quite easy to follow and without prior knowledge of economy (Both IRL & EVE) it could seem reasonable.

This, as I started saying, is no excuse for abusing those poor, innocent definitions of words, but it is an explanation as to why at least some people do.
DarthNefarius
Minmatar Heavy Industries
#28 - 2012-06-03 00:46:38 UTC  |  Edited by: DarthNefarius
Roisin Saoirse wrote:
So, 'faucets' and 'sinks'.


An ISK 'faucet' (a faucet is a tap for us Brits) is a metaphor for something that adds 'water to the basin' (in this case, ISK to the economy).

An ISK 'sink' is a metaphor for the opposite, the removal of ISK from the overall economy.

*


Fair enough....
The other side of the coin

Material Faucets Also add to the basin: moon goo, minerals,data cores , and nano ribbons
Mineral sinks also remove from the basin in form of destroyed ships and production waste

There is another side of the coin too: the unsub sink which affects both ISK and materials availability.

Until recently with the demise of drone poop (& T0 loot ) Mineral sinks were far outpaced by the Mineral faucets... these are interesting time IMHO
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
DarthNefarius
Minmatar Heavy Industries
#29 - 2012-06-03 00:53:07 UTC
Tallian Saotome wrote:
Headerman1 wrote:
Roisin Saoirse wrote:
[quote=Headerman1]. Blink

!

Simple question. Where does the isk go? Ignore materials, just think isk and absolutely nothing else.

If the isk goes to or comes from another player or player owned corp, it stays in the system and is neither a sink or a faucet.

.


For the most part except for unsubs and lp store purchases (and a small part taxes) ISK stays in the system and just moves around.

An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
Linna Excel
Center for Advanced Studies
Gallente Federation
#30 - 2012-06-03 00:54:00 UTC
OP: Good post

Roisin Saoirse wrote:

Why isn't PvP an ISK sink? Because you transferred your ISK to someone else when you bought your ship, so even if you lose the ship that ISK is still in the system.

The only real ISK 'faucets' are the things NPCs pay us for. NPC bounties and mission rewards are the most obvious and most common examples.


QFT.

Now PvP is a mineral faucet as the blown up ships remove minerals from the game, but for ISK, not so much save minor taxes.



Quote:
Conversely, the ISK 'sinks' are also NPC-oriented mechanisms such as taxes, contract fees, alliance and sovereignty fees, clone upgrades, NPC station jump clone installation, skill book and BPO purchases and even NPC-sold trade goods.


We need T2 BPOs back in the game for more ISK sinks. Big smile
Roisin Saoirse
Doomheim
#31 - 2012-06-03 00:56:09 UTC  |  Edited by: Roisin Saoirse
Alphea Abbra wrote:
Moon-goo is actually overall an ISK sink - in order to have POS'es ISK has to leave the game - but in terms of value it does create a lot. That value can be translated into ISK, and often quite a lot ISK. Since people with less interest in economy may use value and money interchangeably, I think this is where the confusion arises (Unless, of course, someone has something to gain by playing dumb).

If you look at moon goo in terms of the POS modules etc. that it requires, then you're correct it actually is a tiny ISK sink. Or rather, the manufacturing slots and transaction fees involved with creating the POS modules and fuel blocks etc., results in an overall minor ISK sink.

Someone also just pointed out to me PI is also a minor ISK sink (with NPC sold structures and customs office fees).

edit: which was already included in Tippia's list Oops I really need sleep.
Alphea Abbra
Project Promethion
#32 - 2012-06-03 01:02:55 UTC
Roisin Saoirse wrote:
Alphea Abbra wrote:
Moon-goo is actually overall an ISK sink - in order to have POS'es ISK has to leave the game - but in terms of value it does create a lot. That value can be translated into ISK, and often quite a lot ISK. Since people with less interest in economy may use value and money interchangeably, I think this is where the confusion arises (Unless, of course, someone has something to gain by playing dumb).

If you look at moon goo in terms of the POS modules etc. that it requires, then you're correct it actually is a tiny ISK sink. Or rather, the manufacturing slots and transaction fees involved with creating the POS modules and fuel blocks etc., results in an overall minor ISK sink.

Someone also just pointed out to me PI is also a minor ISK sink (with NPC sold structures and customs office fees).

That was what I meant, yes. My point was that interpreting moon materials as "ISK printing machines" is wrong (No ISK are created, they are actually removed - though not by much), but not as wrong as some try to make it seem.
DarthNefarius
Minmatar Heavy Industries
#33 - 2012-06-03 01:03:50 UTC
Headerman1 wrote:
Roisin Saoirse wrote:
Headerman1 wrote:
Then just like a mirror, you have the 'sink' from that isk coming in; people buying expensive items and getting them blown up. I think ships blowing up is definitely an isk sink, as the net result is a big loss minerals and modules out of the universe.

This is the misconception I was trying to address my original post. As I said, minerals, ships and modules have nothing to do with ISK sinks. The money that paid for those items is still in circulation, it isn't removed from the system.

ISK faucets and sinks deal in ISK injection/removal only - not minerals, ships, ammunition, modules, PI goods, moon goo or exotic dancers. Blink


This is very true.

But, mineral prices may cause a bigger isk sink in the form of bounties/missions etc, the cost to convert the created isk into ships and modules is a lot higher now, due to there being less minerals available.

!


WRONG ONLY WAY MINERAL PRICES ARE AN ISK SINK IS DUE TO (usually only ) A ONE TIME NOW 1.5% (sometime 0 if you mine your self or maybe for the most part at most 2 time) TAX ON TRANSACTIONS OF THE MINERALS
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
DarthNefarius
Minmatar Heavy Industries
#34 - 2012-06-03 01:06:32 UTC  |  Edited by: DarthNefarius
Linna Excel wrote:

QFT.

Now PvP is a mineral faucet as the blown up ships remove minerals from the game,


Umm U are confused: PvP ship destruction is a mineral/materials sink plain & simple for the most part ( PvP ship destruction on top of being a mineral sink is actually a ISK faucet in the form of Insurance payouts )
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
Headerman1
Ministry of War
Amarr Empire
#35 - 2012-06-03 03:47:58 UTC
DarthNefarius wrote:
Headerman1 wrote:
Roisin Saoirse wrote:
Headerman1 wrote:
Then just like a mirror, you have the 'sink' from that isk coming in; people buying expensive items and getting them blown up. I think ships blowing up is definitely an isk sink, as the net result is a big loss minerals and modules out of the universe.

This is the misconception I was trying to address my original post. As I said, minerals, ships and modules have nothing to do with ISK sinks. The money that paid for those items is still in circulation, it isn't removed from the system.

ISK faucets and sinks deal in ISK injection/removal only - not minerals, ships, ammunition, modules, PI goods, moon goo or exotic dancers. Blink


This is very true.

But, mineral prices may cause a bigger isk sink in the form of bounties/missions etc, the cost to convert the created isk into ships and modules is a lot higher now, due to there being less minerals available.

!


WRONG ONLY WAY MINERAL PRICES ARE AN ISK SINK IS DUE TO (usually only ) A ONE TIME NOW 1.5% (sometime 0 if you mine your self or maybe for the most part at most 2 time) TAX ON TRANSACTIONS OF THE MINERALS


YES I UNDERSTAND THAT NOW, THANK YOU FOR YOUR INPUTAttention
Roisin Saoirse
Doomheim
#36 - 2012-06-03 13:50:44 UTC
Well, thanks to the supersleuthing of Akita T and Tippia in another thread (relevant posts begin here), it's been shown that insurance is actually a minor ISK faucet. I doubt it'll quell the debates (because everyone in EVE is an expert, obv.), but at least it has provable numbers so that's good enough for me. Big smile

Great work guys.
Pisov viet
Perkone
Caldari State
#37 - 2012-06-03 14:01:34 UTC
That was a real nice post, OP, but it's pointless as people still wont differenciate isk and ressources.
Linna Excel
Center for Advanced Studies
Gallente Federation
#38 - 2012-06-03 14:06:23 UTC
DarthNefarius wrote:
ONLY WAY MINERAL PRICES ARE AN ISK SINK IS DUE TO (usually only ) A ONE TIME NOW 1.5% (sometime 0 if you mine your self or maybe for the most part at most 2 time) TAX ON TRANSACTIONS OF THE MINERALS


Those taxes are not significant.
Tallian Saotome
Nuclear Arms Exchange Inc.
#39 - 2012-06-03 14:19:49 UTC
Roisin Saoirse wrote:
Well, thanks to the supersleuthing of Akita T and Tippia in another thread (relevant posts begin here), it's been shown that insurance is actually a minor ISK faucet. I doubt it'll quell the debates (because everyone in EVE is an expert, obv.), but at least it has provable numbers so that's good enough for me. Big smile

Great work guys.

I was pretty sure it ended up as a faucet, just because the very expensive ships only get insured when we KNOW we are gonna lose them. Capital pilots don't insure unless the FC says we are gonna die(carriers typically last 6 months+), T2 ships are not worth insuring generally, and T1 ships always get insured because they die in droves.

Glad the numbers were hammers out tho Cool

now, given the volume of market transactions, is the 1.5% really so insignificant? 1% isn't much on a million isk transaction, but 1% of a million of those transactions is huge. Its not significant to individuals, but its very significant to the economy as a whole.

Inappropriate signature removed, CCP Phantom.

Hrothgar Nilsson
#40 - 2012-06-03 14:55:46 UTC
Truth is ISK is just a unit of account. It's just a "middleman" with no intrinsic value in and of itself, to allow the efficient exchange of actual, material wealth (i.e. minerals and the things made with them).

People who speak about ISK being the issue are missing the forest for the trees. The primary issue for balancing the EVE economy lies in balancing material faucets and sinks.

*technically, virtual material wealth