[MoE] Economy Changes

Day 3,140, 08:18 • Published in Canada Netherlands • by Eduard Douwes Dekker


Oj!

The resources distribution that resulted from last month’s Resource Wars Event will be live on Day 3,145. As announced, along with this come some changes to the Economy Module.

The most important of them is that from then on the Companies will no longer “travel” with the citizenship of the owner but will be established on firm ground. For this purpose we are introducing the Holding Companies.

A Citizen can set up one or more Holding Companies in different regions, according to their needs in terms of productivity bonuses. A Holding Company can own any number of finished goods and raw Production Facilities and those will benefit from the productivity bonus of the Holding Company.

Keep in mind that in order to create a Holding in a region of your choice, you must travel there first.



How much does it cost to create a Holding Company?

While the first Holding Company can be created for free, you should know that additional ones will have a specific cost in Currency, as follows:
Holding Company cost = Number of Holding Companies owned * 25 Gold.
As per the above formula, the first Holding Company created is free.

How much can be assigned to a Holding Company?

Holding Companies can hold an unlimited number of Factories. Please note that when you create a new Factory, it will not be assigned to any Holding Company, therefore it will not function. However, you can assign it afterwards for free.

Can I re-assign a Factory to another Holding?

The first time you assign your Factory to a Holding Company, you will be able to do so for free. You can later relocate your Factories if you want to, but relocating them will have a certain cost depending on their type.

The cost for relocating a production facility is based on the value of the Company and the distance between the two Holding Companies. The relocation fee is paid in Currency and varies between 5% to 20% of the Factory face value (discounts do not apply).

Let’s take for example a Q7 Weapons Factory, its face value is 1230 Gold (10 Gold creation + 1220 cost of upgrades). Using the Monetary Market exchange rate, that value will be converted to Currency (assuming an exchange rate of 400 Currency / Gold). 1230 Gold would translate into 492000 Currency, which would bring the assign costs between 24600 and 98400 Currency depending on distance.

The formula for relocation is 4% company value + 1% of value for each 1000 km travelled, capped at 20% value.
Please note that you cannot re-assign a Company to the same Holding and the assign costs only apply from the 2nd move onward.

Hiring employees

A Holding Company is required in order to post job offers. Once posted, an offer will be available on all the markets (countries) where the Citizen has Holdings.
Current Job Market offers will remain, but will not be visible until the owner has Holdings, at which point, they will become visible in the Country that currently owns the Holding’s region.



Existing Factories

All existing Factories will initially be unassigned. An unassigned Factory cannot produce goods, they need to be assigned to a Holding first.

Creating new Factories

After the creation of a Factory, it will show as unassigned and, in order to start producing in it, it needs to be assigned to an existing Holding.



If the Country where the Holding is located has a trading embargo against the Country of citizenship of the owner of the Holding, the owner cannot work as manager.

Selling/Buying Factories on the Market

A Factory that is assigned to a Holding Company can only be bought via another Holding Company in the same region.

A Factory that was not assigned to a Holding can be bought as such by any Citizen, no matter where his Holding Companies are.

Working as Manager

In order to be able to work as manager, you will need to be located in the region where the Factories are located.

Impact of wars and trading embargoes

When the Country of citizenship of the manager is in direct war with the Country where the Holding is located, the manager cannot work in the factories of that Holding.

Taxation

Work as Manager Income Tax will be shared between the Country where the Holding is based and the Country of the manager’s citizenship, as follows:
Paid tax: 80%(Holding Country work tax) + 20%(Citizenship work tax). As a reminder, for Work as Manager, the Income Tax is paid based on a Country’s average salary and Work Tax law.

Example: Citizen works as manager in a Holding located in Country A and has citizenship in Country B. He will pay 80% of country A’s Income Tax (to Country A) and 20% of Country B’s Income Tax (to Country B ).

Productivity bonus

The Productivity Bonus for an industry is calculated as such:

Productivity Bonus = Country Productivity Bonus + Region Productivity Bonus + Player Booster - Region Pollution Factor

Pollution Factor is calculated based on the number of goods of the same type that were produced in the region compared to the overall average production for that type of goods. The factor varies between 0 and 25%. The more goods are produced in the region, the higher the pollution will be. Each product type/quality pair will have its own pollution.

All raw Factories will share the same pollution for their respective industry (Example: Fishery, Grain, Farm and all other Food Raw Materials will share the same Pollution Factor).

The Country Productivity Bonus is the sum of distinct industry resources the Country owns.

IE: if a Country holds all 5 resources for an industry and the regions are linked to the capital, the Country Productivity Bonus will be 100%.

Keep in mind that if a region is not linked to the Country capital, half of its resources’ productivity bonuses will be used in the formula (ex: 25% for rare will become 12.5😵.

The Region Productivity is the sum of the industry specific resources available in the region divided by 5.
IE: if a region holds the best 4 resources for an industry, its productivity bonus will be 18%.

Based on the numbers presented and assuming a Pollution Factor of 25% and no individual Productivity Boosters, the Productivity for a food company will be computed as:

Total Productivity = 100%(base_productivity) + 100%(country_bonus) + 18%(region_bonus) + 0%(individual_booster) - 25%(pollution) = 193% (93% productivity bonus)
For the same example but with no pollution we would 100% + 100% + 18% + 0 - 0 = 218% Total productivity (118% productivity bonus)


Other Examples:

0% country bonus, 0% region bonus, maximum pollution: 100 + 0 + 0 + 0 - 25 = 75% Final productivity (-25% productivity bonus)
50% country bonus, 5% region bonus, 5% pollution: 100 + 50 + 5 + 0 - 5= 150% Final productivity (50% productivity bonus)


For more information about changes visit forum and see how admins did answer some questions.



Vote, Subscribe, Endorse and Shout!

Minister of Education
Ministre de l'Éducation
chopp dks