Warmane Inflation phase policy

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.

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Originally Posted by Kacii

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.

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lul no all that will do is make people trade face 2 face and COD. dont fix whats not broken.

Quote:

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Originally Posted by Kacii

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.

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Imagine the backlash on this. Gold squish is bad enough.

Trading on AH doesn't create gold. If anything this would raise the inflation because majority will simply do quests and grind mobs [create gold] because of lower gains from AH. We can observe this after squish - prices on market are so low that everyone simply does quests/mobs to gain gold. Which causes prices to raise at extreme pace and within 1-2 months after squish prices are back to "normal".

All the "old dogs" with lots of gold/stuff do not participate in economy, since they have everything they need - for the most part, so amounts of gold have minor impact on market. You can't take AH Tax from them.

I don't see how squish has anything to do with prices, except of coarse upsetting them with pre-squish inflation and then after-squish phase when everyone sells stock they were forced to create.

Btw, Tax is 5%, so from 2000g you are left with 1900g.

What we need is something to nuke those "1 copper, stack of 1" spammers, maybe raising minimum deposit to 10 silver instead of 1 silver, idk. Maybe increaase cancellation fee to 20% of bid instead of 5%. That would create actuall competition by price instead of who is better cancelling and reposting their 1 copper bid auctions.

Quote:

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Originally Posted by Ramabeus1

lul no all that will do is make people trade face 2 face and COD. dont fix whats not broken.

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Everyone would just go to COD. You'd see full stack on AH for 4k but full stack on COD would be 3k, pick which one people would prefer. You save 1k, I get 1k more, perfect.
Keep squishing and that's all, maybe do more frequent smaller squishes, but that's enough. Prices only skyrocket once people are afraid of the next squish, a month or two before the squish.

I think they should make the gold rate x1 when you hit level 80.

I bring this up because questing at 80 brings a lot of gold into the server. Argent Tournament dailies alone can bring well over 1k into the system for a single player in a single day for a few minutes of work.

Considering questing and vendoring are (I believe) the only ways to inject gold into the economy, something should be done to nerf it. I mean I assume x3 gold is because it's hard to even afford abilities when leveling, but what's the point at max level ya know? Just adds additional gold to the system, which they then squish to take out. Thing is though if gold is x3 and squish is 1/2, there's still more gold in total than if there wasn't increased gold rate.

10g for a quest * 3 rate = 30g for the quest
30g / 2 for squish is 15g.
That's still 5g more than if there wasn't a gold modifier. Multiply that by the tens of thousands of quests that get done every year and the amount of gold on the server just keeps growing.

It's not about how much gold gets squished. It's about how much gold can be farmed by players in certain time, lets say 1 month, which is generous. So 1 month after fresh player day 1 he has farmed gold that governs prices and economy.

Could work something like quest reward is x1 but exp reward at 80 conversion to gold is x3. New players are supposed to be poor bums, that is important aspect of the game.

That is currently how it works. At level 80 the quest reward gold is x1 and the xp to gold conversion is x3. Then, the xp to gold conversion reward is added to the original quest gold reward and that's what you get for finishing the quest. Side note, from what I can find you're only supposed to get the xp to gold conversion reward for finishing a quest at 80, not the xp to gold conversion reward + the original gold reward. That's besides the point though, I realize that reducing the gold received for finishing a quest at 80 (13g 23s instead of 47g 9s for finishing an AT daily for example) would harm newer players, but so does the squish. Reducing quest gold would reduce the overall amount of gold that gets injected into the economy is all I'm getting that, and returning quest gold at level 80 to retail values would reduce the overall gold in the economy more than the squish does.

Then again maybe people would just quest/daily more to make more gold and it wouldn't matter. Idk.

That would drop overall prices[number - not actual value] of things for sure. But since we see after squish prices stabilize and stay at fairly even level for 6-7 months. I mean if inflation is that bad wouldn't prices raise steadily all the time? Reason leads to conclusion that injected gold amounts is not that big of a deal, it just sets the price "numbers", and those numbers will stay the same no matter how many times it gets squished - that's exactly what has happened every squish since rates were changed. That's where what you said comes in.

And after those 6-7 months all the old farts are dishing out their gold reserves to stock up on things, effectively flooding market with gold, causing inflation which causes squish which causes inflation which causes squish which causes inflation which causes squish which causes inflation which causes squish which causes inflation which causes squish which causes inflation which causes squish which causes inflation yeah

But its pretty pointless, staff has their reasons and all they can say is "inflation bad, economy healthy", real reasons are state secret I guess.