Dear community,
As we all know, the economy on Warmane passes sometimes through an inflationary phase, which is particularly normal according to the laws of supply and demand and prices can fix themselves on the long run in accordance with these laws. However, the Warmane staff implement a gold squishing policy which usually are a 50% reduction on each character’s gold amount on all realms.
This policy seems unfair to some players. For instance, a player who was able to collect an amount of 100k gold by accomplishing his profession will have a gold squish of 50k gold, which means he lost 50k gold of his time, where he could have efficiently used this time for other things. This policy is certainly effective, because it reduces the supply of gold and therefore will force prices down.
My suggestion on this matter is that another policy can be implemented in order to lower the inflation rate. First of all, the auction house is the place that causes prices up and down. Furthermore, it takes a percentage of gold on each successful auction. In other words, an item sold at 2000g for example will generate a profit of approximately 1800g.
Through temporarily increasing the auction house’s cut on sold items, and I wish to emphasise on the word “temporarily”, prices will eventually go down and the inflation rate consequently, due to the fact that sellers cannot sell at a higher price in order to increase their profits because it will cause a rapid decrease in the demand, and they will not be able to sell their goods. Moreover, the seller will prefer trading them at a lower price in order to guarantee his or her sale. For example, if this rate is increased from 10% to 50%, and I want to sell a stack of good X at the auction house which can exceed 6000g during a severe inflation, I will therefore be doing a 3000g profit on each stack. As a result, I would prefer selling it around the profit price outside the auction house.
By doing so, we will witness a decreasing amount of profits, which means a decrease in gold assets, and at the same time it will cause an inevitable decrease in prices as sellers will need to satisfy the demands of players even though they will be making much less profits.
I hope this theory is successful and can be interchangeable with the gold squishing policy.
Sincerely,
Boomzy.