HALP MY CREDITS ARE WORTH LESS THAN THEY WERE BEFORE! This seems to be the case for a lot of users of GameRenders lately. In any economic system, there is always some form of inflation, but GR's inflation is really too high, I think some of you can agree. In this thread, I will conduct a short analysis of GR's current economic system, and possible solutions. Don't bother to respond if you don't have anything to add. 1. Inflation. in·fla·tion /ɪnˈfleɪʃən/ Pronunciation[in-fley-shuhn] –noun 1. Economics. a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation). 2. the act of inflating. 3. the state of being inflated. There are two big forms of inflation : - Cost-inflation (or Cost-push inflation). - Expenditure-inflation (or Demand-pull inflation). Cost-inflation implies that companies (or in this case, people who make sigs, templates etc. for credits) need to cover their expenditures, and still make profit. For example : Price = Cost + Profit. If the costs to make something rises, the price will also rise. In GR's case, this sort of inflation can be ignored, because there is no real cost for creating a signature or template, only time. The other form, Expenditure-inflation, means that companies (Sellers of sigs, templates etc.) ask for higher prices, because there is a bigger demand in the products. The effect of this is that the currency's value will go down. You can buy less products for more "money". What does this mean for GR? Simple, as the site grows in members, there is a higher demand in "products". More members also means more credits the circuit. More credits in the circuit means that there is a lower demand in credits, so they become less valueable. There are generally speaking multiple solutions to inflation. Some of them don't apply to GR (because the economic structure does not depend on resources). Some of them that DO apply to GR, are listed below : - "Deleting" Credits from the circuit. This won't have much effect, unless a huge percentage (>60%) is deleted. This is because that smaller amounts, would have a much lesser effect due to that the situation will be back quicker to what it is now. - Fixed or minimum prices. With minimum or fixed prices, you can control the flow of credits. - Tax This is a good way to periodically get credits off the system. For example, a cost x% is automically added to every transaction, but gets deleted. - Stopping the income of 1 post = 1 credit. Although this would be very bad to the community (starters can't earn credits easily) it's an easy way to control inflation. With a fixed amount of credits in the circuit, prices are more stable also. My advice : a combination of these methods. 1. Delete a big portion of the current circulated credits. 2. Set minimum prices, to get better control of the circuit. 3. A small tax. (calculate how many credits are added everyday, and divide it by the total. Add a very little bit to this number, and you have the tax. ) With these 3 things, you almost ensure that credits won't lose value. Even due to the tax being higher, credits will even GAIN value very slowly. My rant ends here. Although to get a better view of GR's economic structure, one would have to have access to more numbers. Something which I don't have. Before my little rant ends, I would like to say that solving this problem is in the benefit for everyone, so don't just whine about your money, try to understand that this is can't hurt, because although you lose credits, the credits you have left gain value. This is the same for everyone. End of rant.
i think they have taken these steps before. except taxing. it didnt work. some might say GR died when they set the price limit for tutorials.
a good idea about the 1 cred per post can be if they type like 50 characters or more, they would get a cred, not just a couple words.... spammers.
you dont get credits for your posts in each forum, eg spam heaven,market place etc. and in the rest there is no spam allowed. and sorry, but i think you need to shut up ShinSR-71, you have no idea how it was here before, you just joined. and about taxing, the sellers will just say that the buyer needs to pay the extra taxes.. So for eg, is the tax of 10k is 1K, and the persons that sells wants 10K for it he will just say to the buyer that he needs to pay 11K, so it has no use.
I'm not sure if people are still able to buy credits for money (at least they could 1 year ago), but removing that possibility would be a good start. The rest won't do a thing i'm affraid. Anyway, inflation has been around as long as i can remember, and people are yelling about it, as long as i can remember also. So it's not something from the past few weeks (like you imply). That's the reason why banks don't simply make more money, because it will increase the inflation. i'd say that would be pretty bogus. there are a lot of things that added to gr becoming less popular (i don't mean less members, but less active/staying/serious members). I'd say gr got to the top some time ago, maybe even before i became a member. And as with everything else that got to the top, the only way further is going down. It would take a lot more then 1 simple change to get to the top again.
EBK is the talk of all credit inflation. He's earned all his credits though, not bought them, so hes good imo .
Sell all your credits. You would make a crap load of money. Or you can sell them all to me for hugs and kisses.
you have some legitimate points. my thought is that for beginners in this community the prices are too high. to fix this, either their "income" needs to be increased, or the current reserve of creds needs to be reduced(EH every other cred removed from the system across all users and prices in the shop adjusted accordingly) now it's generally noted that the income on this site is the amount of credits gained per post. halving the creds each user has would almsot instantanesouly increase the cred value. Likewise doubling the creds per post would tremendously help begginners and the effects of it would take a notable amount of time to be seen. Based off of current trends, 1 cred today is worth around 1/3rd as much as it was in 2004. that's roughly a 43% per year rate of inflation. This leads me to conclude a few things. D------uation of the credit is NOT linked to the net supply of creds in the system, or atleast not to the degree most would think. The number of creds in the system has increased at a rate of around 300-500% per year since I started here in 2004. Obviously, this vastly exceeds the rate of credit d------uation. It also implies that removing creds from the system has a minimal impact(atleast at moderate levels in a gradual manner). In the past, by the testimonials of the admin/moderators. my synopsis- cred inflation is caused by the accruement of creds by specific individuals. If 100+ people have 5-50k creds to spend, then people will charge more. Supply and demand and in this case those with more creds have d------ued credits themselves by their excessive hoarding. money distributed to begginners has relatively little impact on the market as they cannot afford to pay for the more expensive things. This also encourages beginners away from the market place. so basically what I'm saying is the following(and eys it's crazu and will inevitably piss off some people) DOUBLE the creds per post. this immediately helps beginners. divide the total number of credits in half. nothing gained nothing lost. Impose rule stating that all transactions made prior to a certain date now have the value per cred doubled such that loans are not altered as to benefit or disadvantage a lender or a lendee. as crazy as it sounds, inflation doesn't matter if the amount of creds that everyone has increases at the same rate. If I had 1,000,000 Euros, pounds, US Dollars, etc. and you took away half but doubled their value, i woudln't care. If you doubled waht I had but halfed the value I wouldn't care. ======================= and here is another note and some will disagree as this is based largely on opinion. Back in the days when GR was still young and noone even thought about credit inflation a few conditions existed which do not today 1 people did not buy creds with real money 2 effectively noone had in excess of 5k creds and those that did were moderate in spending 3 noone thought about inflation. the whole inflation craze started after creds beggan to be sold. I believe the first well known purchase was the transaction where BFTP bought a sum of around 20-30k creds from jesseboi(the method by which he obtained the creds is no longer allowed on GR) after creds for cash became popularized the site's economy almost instantly boomed and at the same time some inflation occured. BFTP argued that it should be prevented to help the newbs, a position which I agree with. After a whiel when he had money vested into creds his position changed so that inflation should be halted to protect the investment of those who have creds. Effectively, one could say that it was self-benefitting propaganda and that it spread A LOT. The fact that the moderating staff was also paid in creds didn't help. Then a trickle down effect occured. again my stance is the most controversial and the most crazy of them. This si further amplified by the fact that I don't give a damn about creds. First person to post in this thread after this asking for creds gets 500 creds... FYI that's about all I have...
Doesn't seem that crazy to me. The double credit per post idea would seem ideal for the new members; but then again it just puts more credits into circulation. The value of credits will just become less and the problem still remains. Halving the members credits, would be the best idea. The value goes up, and the price-per-credit ratio on items will go down. IMO, selling credits shouldn't be allowed in the first place.
