Economic Collapse
Savonrepus
Over the past few days and especially in the last 24 hours we have seen currency markets everywhere fall in a hole. What is going on????
Well it is all perfectly logical. The series of recent changes to the game have set up a perfect storm whereby there is every incentive to sell currency and no incentive to buy.
Productivity bonuses for citizen based companies together with the levelling of the land region bonuses killed off international trade. International trade flourished with orgs scouring the world for cheap raw materials - when the ability to donate raw materials died international companies were established to donate goods back to the home market. With some countries labour focused on land production then others could focus their labour on manus encouraging international trading in all goods.
With citizen based productivity bonuses international org based companies could no longer compete and with the levelling of the land region bonuses it became much easier for every country to produce all that it needs locally without the need for trade.
PTO activity whereby foreign dominated governments use their power to take over local communities print up currency and repatriate the gold on currency sale is a further on going issue in relation to currency value.
Gold training and production incentives have added to the problem. With production trebled with the use of gold there is further incentive to buy gold and sell currency. As the top tanks flat line in damage and the newer citizens catch up the emotional incentive to gold train is huge. The latter works like this - If a top tank had a strength of 3k a month ago and a minion 1k then was able to make 3 times the damage (assuming equal rank) - now that tank's strength has increased to 4k but the minions gone to 2k so the tank is now only doing double the damage. Slowly his influence is being ebbed away.
The final nail in the currency coffin has been manager work. With company managers able to produce any goods they like merely for the cost of 10 wellness they have every incentive to start investing in multiple companies further increasing the demand for gold to the detriment of currencies.
In the end it is the same old story - we all look at the cake and want a bigger and bigger share of it for ourselves basically though this profit motive is what makes a trading system like erepublik work. It does become a problem however when the managers of the game also take this particular view. Game managers should be focused on making a bigger cake to get their profit share not to be trying to take an increasing share from their existing players - do that and you stifle the game into obscurity.
How do we go forward from here. Well sometimes you have to examine what brings success and what brings failure. The core success of erepublik was and has always been where communication has been fostered between players. It is a bit like growing a garden - you need water, sunshine and to keep out the bugs. No matter how much mind power you will your plants to grow you need the basic components and work on the components and the plants will grow. .
The sunshine of erepublik is the fact that unique communities exist in real life and want to replicate themselves in an on line environment. To get more sunshine you need to increase your footprint. Multilevel marketing (gold incentives to create new citizens) has clearly been a failure. This is because 90% of us when it comes to friends do not wish to be exploitative. If we like it we share it for nothing certainly not for reason of profit. Clearly with the gold incentives - like gold for opinions or ring tones - erepublik has some sort of local marketing connection in unique communities - start using this network to attract citizens.
If you wish to relate the real world to erepublik - economic growth is fostered by product differentiation - the more products available the more opportunities there are to spend. Clearly this was the thought process behind rising and clearly this failed at the start due to the complexity but even under rising as citizens started getting used to the idea the product differentiation was stimulating growth. Why then did we return to product simplification that was even less diverse than V2. Citizens like identity wither it be community or profession. Once someone was proud to call themselves a construction, land or manufacturing worker. It meant that their talents at times were in demand over the other guy. That makes some feel good.
The water of erepublik is communication between citizens. Don’t implement change that kills communication such as the manager work scheme that means a manager can produce all that he wants on his own without having to bother communicating with employees. Consider reintroducing communication products. Part of the success of V2 was the gift product - It required communication to be effectively utilised. Much erepublik activity happens outside of the game itself in on line chat - like irc. Promote it and you breathe life into the place.
System bugs are not the bugs that destroy this place by making citizens lose interest. Bugs are those that infect and destroy communities like multis and ptos. Clearly the longer the game exists the smarter some become at finding those loopholes. Clearly much work has been done to reduce the incentives to create mulits but perhaps there is another way and this is just a thought in the same way a citizens strength increases with training - create a negative battle damage component as countries receive donations from non citizens (anti pto) and negative battle damage component as citizens receive donations from other citizens (anti multi).
Comments
Sorry I love the idea the more you give someone (or a country) something the weaker they get - you might need an accept reject donation button and a few other refinements but it has possiblities in the context of the game.
great aritical. maybe a limit to the amount of donations you can get a week or day for other players
Wow long article. Great read though. Guess there is no fix, and we'll get used to values being what they are.
It is the end, I think
http://www.erepublik.com/en/article/plato-food-fake-money-and-bot--1650391/1/20
If this is true then seems admin have thought of their own fix without considering all the implications - this fix just creates inflation and contributes to the gold slide - as the article outlines.
Whilst I think of it I add 2 comments
There is no reason why gold spend could not form part of the game - eg spend gold to gold train could be converted to company managers supplying trainers that boosts strength - For the first someone buying gold the expenditure adds no value to the erepublik economy - the second adds major value to the erepublik economy - (via the economic multiplier effect).
Yet both ways if the gold is bought the hard currency goes to the game administrators.
Secondly those who think that my damage reduction for donations scheme could be just circumvented via the money market - A useful safeguard would be the implementation of trading price limits - as operate on many real life exchanges
Excellent article, thanks!
Good observations, Sav.
Your ideas to apply negative results based on donations is absolutly rediculous.
thank you, very informative and thought-provoking. It sms as though there should be an ultimate game/international regulating system, so that some economies don't run wild with certain granted advantages while others stagnate
@captain briggs - a subjective comment not supported with any analysis is rather a waste of a contribution to a debate that needs to be had as a result of the dramatic economic changes that have manifest themselves over the last couple of days but are the outcome of a series of rule changes over several weeks.
The greatest form of control is when you think you’re free when you’re being fundamentally manipulated and dictated to. One form of dictatorship is being in a prison cell and you can see the bars and touch them. The other one is sitting in a prison cell but you can’t see the bars but you think you’re free.
What the human race is suffering from is mass hypnosis. We are being hypnotized by people like this: newsreaders, politicians, teachers, lecturers. We are in a country and in a world that is being run by unbelievably sick people. The chasm between what we’re told is going on and what is really going on is absolutely enormous.
The greatest hypnotist on the planet Earth is an oblong box in the corner of the room. It is constantly telling us what to believe is real. If you can persuade people that what they see with their eyes is what there is to see you’ve got them. Because they’ll laugh in your face of an explanation then which portrays the big picture of what’s happening… and they have.
Great article. Perhaps prudent divestiture is key to stemming the long term impact, while individual countries consider a stimulus package of sorts for companies in their countries. Mind you, that puts the onus on individual governments to play a greater corporate watchdog role - in addition to a reasoned backlash from the business sector. Quite the stalemate ..
With further changes ahead of us ( Removal of Hospitals,Defence Systems,Houses and Moving Tickets !), I myself feel that there would be very little use in trying to implement any form of restriction upon Citizens !
Donations are extremely important for military campaigns and any restrictions on donations would see even further downturn in purchased goods.
Given the rediculous wages being payed at the moment there can not be any form of competition in the market place without incurring High losses within the companies.Yes u may say this can now be offset by Managerial Workers but my argument against that is simple . For a company manager to compensate against ineffecient workers they Must Gold Booster their own work! This presents further problems because any employee can not afford any prducts themselves due to the highly inflated monetary value ! Not all people can afford to create or purchase Companies either, which presents yet another issue of where do they work if there are no jobs on offer as everyone is working for each other and their own buisnesses attempting to keep running costs down ,while still overly inflating Product Pricing !
All in all I think that we still have a lot of BIG changes coming over the next cpl of months and until these changes are inplace there is no point in attemting to alter game mechanics !
I hope I confused you as much as I confused myself 🙂.!
Ohh good article Sav .
Keep up the Healthy Debates for us lowly Citizens !
DocterDry gives a very long comment that has absolutely nothing to to with the article but does give an interesting insight into his own state of mind...
Sav, nice article. Admin keep screwing us over and over. So what else is new? I dare you to send them this article in a ticket. I'm wondering if they'll send back "thankyou for your ticket, but as you have no PIN number we are unable to read it".
~ Agent K
"DocterDry gives a very long comment that has absolutely nothing to to with the article but does give an interesting insight into his own state of mind..."
What i said contributes alot more then you think,
Actually I would warn anyone who doesn't follow the comments of DocterDry he is actually speaking about you. DocterDry was the tailor for the Emperor's New Clothes.
You're so intelligent that most of your articles boggle my mind Sav.
Despite this I still find them interesting and informative.
Hmm I need a tailor !
Can u fit me out DocterDry !
Miss eUniverse contest - Vote Miss eAustralia here
http://www.erepublik.com/en/article/miss-euniverse-africa-oceania-nominees-1651586/1/20
thanks for the insight
All these changes mean for me is that I'll run out of money faster.
^ and need to buy more gold : /
The changes that admin make do not encourage an efficient market system. The most efficient market system was v1 because it was stable encouraged collaboration between GMs and workers. Since then they have systemically bastardised the economic module to the point that there is no point participating in that module. The single worst thing they did was giving friend bonuses as that enlarged the multi numbers.
They should remove all the referral bonuses and simply give a kick back on gold purchased. The single biggest turn off for me personally is the rate of change and disruption to core mechanics of the game. I really have no interest in eRepublik at the moment.
@infin you need to take solace in the things that dont change - DocterDry for example
Whilst some things change other things will always remain the same
Wall of text...
i'll vote anyway... the gist sounds cool...