Suggestion: Long Term Event Rather Than Short-Term Cash Grab For Cashing Out High Value Assets

Shares: Event Prizes or Cash Grab?


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Captain Jack

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Calypso Land Deeds.
Arkadia Underground Deeds.
Compet Deeds.
Arkadia Moon Deeds.
Crystal Palace Shares.
And now... Ancient Greece Shares...


There have been many tens of millions of PED worth of high value assets sold to the ingame community. Each time it happens there is a mass sale of high value items sold between players as they race to liquidate cash to invest. Each time it happens there is a prolonged period of time when everyone seems to be short on cash, gradually rebuilding their bankrolls through the combination of smaller deposits and the gradual income of the investment proceeds.

It seems like a constant cash grab which sucks the life out of the economy nearly every time. I could be crazy, but it seems like loot tends to suck in the immediate aftermath too. I theorize that is because there are significantly fewer people cycling.

What if the next deeds/shares distribution were done differently?

Instead of having millions of PED sucked out of the game through the shares system, run an event and give deeds/shares as prizes. Perhaps even sell a smaller portion of the shares, like 10-25% to establish the value and trading of the shares and have the rest distributed by the event.

Imagine something like the SGA, TEN, or FEN events, but with hunting, mining, and crafting giving the chance to drop a "voucher" with 0 TT value which can be exchanged for the shares. This would cause a significant increase in activity, promote the economy, encourage players to hunt, mine, craft. The drop rate could be established such that this event could go on for a significant period of time. 4-6 months, a year even!

This could be the kind of kick the game needs to get the engine revving again. Old players return, new players get a chance at good loot, and the steady player base would be rewarded for being prepared to capitalize on the event.

Constructive discussion is welcome.

P.S.

It was revealed to me that my description lacked enough clarity to truly paint the picture I had in my head. So allow me to create an example.
For my example I will use a theoretical model in which I completely re-do the entire sale process of the Arkadian Moon.

Theoretical Hybrid Model:

Asset: Arkadia Moon.
Business model: Land area with 5% tax divided between all the shares.
Sale price goal: 12,000,000 PED.
Number of shares: 1,200,000
Initial Share Value: 10 PED/each
Initial Sale: 10% of total shares

Initial sale of 120,000 shares (10% of total) would be conducted in the Entropia Share System.

All shares are immediately tradeable.

Event: Hunting and mining activities on the Arkadian Moon will have a chance of producing a non-tradeable token which can be exchanged for an Arkadian Moon Share. The token has 0 TT value.

How the drop rate is established: On the planet partner or MindArk side, a "Fund" is established. 25% of the planet partner's normal portion of revenue produced on the Arkadia Moon is diverted into the Fund. Additionally, any taxes produced by un-sold shares is also fed into the Fund. Whenever the Fund balance exceeds the Share Value, a Token is released into the loot pool.
When all shares have been claimed the event is ended, the Fund is disbanded, and the 25% portion of revenue is redirected back to the planet partner.

By using this model the activity on the sale asset is given an initial publicity boost, hunters are rewarded with markup in their loot and therefor incentivized to deposit, investors are rewarded through immediate revenue, and the planet partner/MindArk gets paid.
 
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Its a good idea, but also MA after reading the thread.

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Great minds think alike! Let’s hope MA can get on board this train.
 
Interesting idea, three issues i see with it are:

1) Usually they are doing the shares to get a cash injection for a project....so you expect them to wait 6 months for all of the cash that is needed? Granted i'm sure many of the projects don't need all of the money straight away and could do with partial amounts as they go along.

2) THe voucher would need to be worth a TT value, otherwise they are trading 0 for whatever cost the deed was going to be. Loot is based on value, not rarity, you don't just receive an UL gun and nothing else when it drops, you also receive other loot (mainly shrap) which makes up the rest of your loot. So if your return for that kill was 50ped, you would get 50ped and the voucher....MA essentially gets nothing out of that...vouchers dropped that are traded need a TT value that when combined, equals the value of the share.

3) FEN wasn't that long ago and from what i remember it was people hunting to get tokens and then sell those tokens to those who had the money to gather a lot at once and by the tickets. So if it follwed the same logic, then it would be people gathering vouchers to tade to others that have the money to by the deeds, which means those potential deed holders are already paying MU to get the shares. That means the share prices will already be inflated and share holders will inflate it further to get some return. Most people buy the inital shares, not for the dividend, but to be able to flip it later. Essentially that would be traded for flipping the tokens. So it may not bring in as many of those investers who would spend a ton of money and give them their cash injection.

I think if they are going to go down this way or think about the idea, then those vouchers you get (which still should have a tt value) should not be tradeable to others and can only be traded to an NPC for either the shares, or the equivilent vouchers TT value. That way, they wont be hyper inflated, people still get the chance to get deeds by cycling and worse case that all the deeds are gone before they can trade in, they can still get their locked up ped back.

But those are just my thoughts on the whole thing and could greatly differ to others.


EDIT: You must spread some Reputation around before giving it to Captain Jack again.
 
Calypso Land Deeds.

run an event and give deeds/shares as prizes. Perhaps even sell a smaller portion of the shares, like 10-25% to establish the value and trading of the shares and have the rest distributed by the event.

:scratch: Weren't a huge chunk of CLDs originally looted by hunting, mining, crafting?
 
Interesting idea, three issues i see with it are:

1) Usually they are doing the shares to get a cash injection for a project....so you expect them to wait 6 months for all of the cash that is needed? Granted i'm sure many of the projects don't need all of the money straight away and could do with partial amounts as they go along.

First off, thank you for the thoughtful and constructive feedback.

While it may take longer than a simple sale, it may not take as long as you think. Arkadia Moon Deeds, for example have still not sold out, and the Arkadia Moon is mostly dead. If they had given out 50% of the shares as event prizes I would wager they would have seen substantially more activity between now and then, and the revenue generated from that activity would have far exceeded the sale value of those deeds awarded.

2) THe voucher would need to be worth a TT value, otherwise they are trading 0 for whatever cost the deed was going to be. Loot is based on value, not rarity, you don't just receive an UL gun and nothing else when it drops, you also receive other loot (mainly shrap) which makes up the rest of your loot. So if your return for that kill was 50ped, you would get 50ped and the voucher....MA essentially gets nothing out of that...vouchers dropped that are traded need a TT value that when combined, equals the value of the share.

This reveals a lack of effective communication of a concept. I had it in my head and failed to put it on paper in the original post.
The premise is this; A portion (say, 10%) of the revenue generated from the activity of the event is used to "pay" for the value of the share. This could be used to tether the drop rate of the shares to the activity performed.
Let me see if I can re-phrase this better in the original post.

EDIT: I have added a theoretical model based on the Arkadian Moon.

3) FEN wasn't that long ago and from what i remember it was people hunting to get tokens and then sell those tokens to those who had the money to gather a lot at once and by the tickets. So if it follwed the same logic, then it would be people gathering vouchers to tade to others that have the money to by the deeds, which means those potential deed holders are already paying MU to get the shares. That means the share prices will already be inflated and share holders will inflate it further to get some return. Most people buy the inital shares, not for the dividend, but to be able to flip it later. Essentially that would be traded for flipping the tokens. So it may not bring in as many of those investers who would spend a ton of money and give them their cash injection.

Fair point. To this I would say a hybrid model would probably provide more of the desired result, giving the asset seller (MindArk, Planet Partner, etc) a cash infusion but also establishing a system which encourages a higher level of activity moving forward.
My goal is mostly to discourage the current model which causes a large scale PED vacuum from the game, and encourage a new model which would result in an overall increase of activity across the game entirely. I think this would benefit everyone involved.
 
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P.S.

It was revealed to me that my description lacked enough clarity to truly paint the picture I had in my head. So allow me to create an example.
For my example I will use a theoretical model in which I completely re-do the entire sale process of the Arkadian Moon.

Theoretical Hybrid Model:

Asset: Arkadia Moon.
Business model: Land area with 5% tax divided between all the shares.
Sale price goal: 12,000,000 PED.
Number of shares: 1,200,000
Initial Share Value: 10 PED/each
Initial Sale: 10% of total shares

Initial sale of 120,000 shares (10% of total) would be conducted in the Entropia Share System.

All shares are immediately tradeable.

Event: Hunting and mining activities on the Arkadian Moon will have a chance of producing a non-tradeable token which can be exchanged for an Arkadian Moon Share. The token has 0 TT value.

How the drop rate is established: On the planet partner or MindArk side, a "Fund" is established. 25% of the planet partner's normal portion of revenue produced on the Arkadia Moon is diverted into the Fund. Additionally, any taxes produced by un-sold shares is also fed into the Fund. Whenever the Fund balance exceeds the Share Value, a Token is released into the loot pool.
When all shares have been claimed the event is ended, the Fund is disbanded, and the 25% portion of revenue is redirected back to the planet partner.

By using this model the activity on the sale asset is given an initial publicity boost, hunters are rewarded with markup in their loot and therefor incentivized to deposit, investors are rewarded through immediate revenue, and the planet partner/MindArk gets paid.

Someone may have said this already, I didn't read all of the responses but it seems to me that in your model, which I think is a pretty smart idea btw, you would need to have an Angel Investor, and most of the time, that role is taken on by MindArk who has the biggest stake in this games success?
 
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