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question Why is Puerto de España so lucrative?
jodgi posted a topic in Economy, Trading and Crafting
Just noticed on felix' map. I get that carta brings in cash, but I don't get some of these other net profit port vs. net loss ports. Would someone care to explain... slowly? -
Now that the gold in the clan warehouse is used for the upkeep of the ports every morning it is essential that access to this money be limited to diplomat level and higher. The disaster of someone returning to the clan after a while, not understanding the implications of using the money and/or sabotaging the clan (and a whole nation) and taking all the money out of the warehouse can be too damaging to the game.
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As I have shown in http://forum.game-labs.net/index.php?/topic/15026-pvp1-july-tobbies-tobacco-imperium/ there is a large spread between bid and ask prices. This spread is only caused by the 5% sales/buy tax which is currently implemented. Not only does this hurt the liquidity of the market it is also very much a PvE construct. https://en.wikipedia.org/wiki/Value-added_tax#Comparison_with_sales_tax In fact, if we were to implement it as a VAT, it would still be a deadweight loss and hurt our PvP market. https://en.wikipedia.org/wiki/Value-added_tax#Limitations_of_VAT Furthermore, it is historically complete inaccurate to have sales tax. (Who would have thought I would find a historical argument. ) There was only "Window Tax" and "Income Tax". (Actually a bit more, but hey, who cares about historical details. ) https://en.wikipedia.org/wiki/History_of_taxation_in_the_United_Kingdom#18th_century So what is the purpose of the 5% tax on contracts? Absolutely nothing! Rise brother and sister captains! No more taxes! Join the revolution! https://en.wikipedia.org/wiki/List_of_historical_acts_of_tax_resistance#18th_century
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I remember in my first week of Naval Action I found some gold ports in the far west corner of the Dutch region. It took me some time to figure out how to buy gold that was produced by the ports. Eventually I made 1.000.000 gold in roughly one week by transporting and selling crafting notes. But nowadays you hear people talking about earning this amount in a couple hours of doing high tier missions. What is the result of such a difference of income and what can be done? Trading between ports. The lack of reward for trading between ports vastly limits the amount of players that are willing to do trading runs, because of their high opportunity costs (they could run a mission in the same time and yield 10x the amount). Attacking contraband traders. The time you invest into reducing sails and capturing a trader is simply not worth it anymore. A friend of mine that just started to play wanted to attack a contraband trader and so I helped him. After he was able to kill off all the crew of the trader I helped him sail the ship back to the capital where he wanted to sell his newly gained resources. But he gained around 20.000 gold for his effort at which he said; let’s not do this again. Like with trading, it simply does not compete in gold/hour with missions right now. Hunting player traders. Naval Action is a PVP-game after all, so hunting player traders is part of the content in Naval Action. Hunting near enemy gold or silver ports could be an aspect of the game. But like the first two points, inflation kills this incentive significantly. But a second killer of the cat-and mouse game of traders and hunters is the teleport ability with your cargo, but this is not my main issue of this thread. These are some examples of content that is being lost because of the current inflation, I suspect that compass wood money pump is not fixed to see what happens with inflation in Naval Action. What we see is that gold is become less and less of a commodity and crafting notes are being hoarded, because the notes are tied with a limited good – higher tier labour hours. I am not arguing that these content examples are not happening right now. Of course some people will participate in them because they might be fun to do. But right now it’s not balanced for players to enjoy trading as a money making mechanic, as they are throwing away money (they could do something more lucrative - opportunity costs). Another limitng factor of the market dynamics is the extreme high tax on selling items on the market. Ship selling and shop, 10% and 5% respectively. For the lower tier goods/ships people tend to not care as much. But if someone is market-pvping with notes, 50.000 gold for each adjustment is not doable and people will leave their order as is. This lack of adjustment leads to more static prices in the market, people are not as willing to over and undercut as much as they would like. This might sound contradicting, me whining about inflation and asking for a reduction in tax (one less gold sink in the game if it is reduced). But right now the tax gold sink for higher tier goods is not utilized significantly. My opinion would be to create different gold sinks than tax on trading on the market, because this tax introduces less competition – which is bad. The amount of ships on the market in a capital (Willemstad for this example) is as of the 30th April 2016 the following: 14, 39, 44, 2, 1, 0 and 0 ships (7th till 1st rate respectively). The lack of 3rd, 2nd and 1st rates is mainly driven by three forces; (i) lack of crafters able to create hem, (ii) willingness to sell to market instead of clan and (iii) the tax rate. I mostly see people selling their 3rd, 2nd and 1st rates in chat and thus private chat. Who would want to forgo 10% of his revenue for just putting it up for sale on the market? This issue reflects on the transparency of the market. People are not competing with each other on prices, which equals a worse off consumer. In conclusion, the ability to earn gold is not balanced right now in the game due to what I suspect to be an experiment by the developers. This causes some parts of the content to be non-viable for a substantial amount of players. A rebalance of (i) gold earned for kill/assist, (ii) compass wood and (iii) teleport could result in a more balanced pallet of content. Ships and good prices on the market are not as dynamics as they could be because of high tax rates. A reduction of (iv) the tax rate could lead to a more competitive market and result in lower prices for consumers. ** Soon crew will cost a significant amount, which is a great addition to the game in terms of battling the inflation with a new gold sink. But this does not take away the effect of gold income imbalance that we are seeing right now ** tl;dr – (i) balance amount of gold earned for other parts of the game to be viable again and (ii) reduce the tax in the ship and shop market to create more competition - by making adjusting orders less expensive.
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