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 Factional Economy

Discussion in 'Suggestions' started by Ghost Ryder, Oct 13, 2017.

  1. Ghost Ryder

    Ghost Ryder Clone

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    TLDR Implement a Factional economy in which a Faction HC can invest FF to acquire returns at set percentages relative to risk

    Factional Economy

    So, I didn't want to clutter the existing post regarding money sinks with this idea because I think it's related to but not entirely within the idea of a UC faucet/sink type of deal.

    So what do I mean by Factional Economy?

    EVE,FoM and other economy based MMO's always fell to the curse of inflation. It's inevitable, when there's not enough of a UC sink or if the sink is just not efficient enough, UC's value over time decreases and prices of all goods rise. Basic Economic theory. Team Fortess has it with Scrap, EVE has it with ISK to PLEX. FoM had it with the constant Faction Fund farming and subsequent FF injections into the economy by the GM's

    So how do we solve this?

    Implement a Faction investment system.

    So the way it goes is that during launch/release all factions will be supplied a limited amount of Faction Funds which is paid out to Faction members for completing Faction-based work. At the end of the day these FF funds earned by the members becomes converted into UC thus becoming their daily paycheck (FoM Vets will be familiar with this system).

    Now, instead of the GM's injecting a certain amount of funds every so often to factions to prevent them from going broke, we just simulate a static investment scheme in which of the Faction's manage a portfolio.

    What do you mean an investment scheme?

    It's simple, take for example Avalon Enterprise (AE). AE has 10 million FF initially as capital. They set let's say 20% of their FF as Salary so their salary account is 2 million FF. If AE has 100 members that equally gained 20,000 FF, then AE members all convert their FF to UC at a 1-1 rate so they receive 20,000 (again nothing new for FoM Vets).

    What happens to the remaining 8 million?

    Well then the Factional High Command get to set a proportion of that amount as "Investments" let's say 50%. So 4 Million FF go to the "Investments Account" and the remaining 4 Million UC goes to their Bank.

    So what happens to the remaining 4 million in Investments?

    This 4 million gets to be invested at the end of every week (or day) to create returns which then flow back to the Faction. There can be 5 sets of investment options: Safe, Low, Medium, High and Extremely High. Each of these returns have their own risk and Return on investments.

    Safe would be 10% Return for 10% Risk (An investment of 4 million will lead to a 90% chance of receiving 400,000 FF profit or a 10% risk of losing 400,000 FF)

    Low for example has a 20% Return for 20% of the risk. (Calculation: An investment of 4 million will lead to a 80% chance of receiving 800,000 Profit or a 20% chance of losing 800,000 FF)

    Medium would be 40% Return for 40% of the risk ( 60% chance of receiving 1.6 Million FF, 40% chance of losing 1.6 million FF)

    High would be 60% Return for 60% the risk (40% of receiving 2,400,000 FF profit 60% risk of losing 2.4 Mil)

    Extremely high would be 80% Return for 80% the risk (20% of receving 3,200,000 FF profit 80% chance of losing 3.2 Mil)

    So if I were HC of AE and I am an extremely lucky bloke and invest Extremely High risk, my Initial investment of 4 million by the end of the week would have increased to 7.2 million FF or if I was unlucky I would have lost 3.2 million FF by the end of the week.

    Now to prevent the entire Mankind Reborn in becoming Jordan Belfort from Wolf of Wall street, these investment options will be hard coded per faction depending on their role in the game.

    Terran Union Factions (CPC,TDC) are only limited to the Safe and the Low Options to prevent the Terran Government from suddenly going broke

    Corps (AE, OZ and NSM) are limited to Safe up to High, Lore wise we can say that High is limit that the Terran Government has regulated all corporations to be at. (TU's version of the Federal Reserve, Bank of England, Securities and Exchange Commission etc etc)

    Clans (Followers of Eternity and The Syndicate) are allowed Extremely High, lore wise they are a private collection of individuals not bound by the law

    Mercenary Faction will be dependent on what the Game Mechanics are for them (group based or Faction based)

    Now with that in mind we can also implement Faction specific actions which can increase or lower Risk

    What are Faction Specific actions that lower risk?

    The CPC and TDC can perform faction specific objectives (Patrols, Scans, Arrests etc.) which reduce the risk percentage on the faction that owns that colony. If Avalon Enterprise Owns Union City Riverside that CPC and TDC patrol constantly and they invest in Medium Returns policy then what would normally be a 40% risk would may be a 30% risk instead! The Same applies for a Terran Union faction, if TDC and CPC patrol a TU colony then their 10% risk drops to 5% instead etc etc.

    The Syndicate and FOE on the other hand with their illegal actions (Siphoning UC from the Colony, Counterfeiting UC, all ideas from the previous thread) would raise the ROI of the investment set. Their 80% Return would lead to a 90% return at 80% risk.

    Of course any TU action on FOE and Syndicate colonies and vice versa will negate these effects

    FAQ

    What if I'm an HC and I don't want to gamble in the investments?
    Well you can always set your Investments account to 0, however your faction will be relying on the taxes that you set on your colonies as a guranteed income as you don't have investments as a way to gain passive income.

    What's preventing the HC's from putting their investments on safe and saving up their money supplies and all?

    Well, since we can't accurately simulate a business cycle in Mankind Reborn the best we can do is integrate a Global Instability Index (GSI). The GSI is simple, if Factions get too much money they do one thing and one thing only, go to war. So if there's too many wars that happened for a set time period ( a month for example) the GSI goes up. Let's say for every Colony takeover, the GSI raises by 1 point. For every 10 points the GSI raises, all Investment Risks go up by 10% whilst returns stay the same.

    So anyone on extremely high has 80% return at a 90% risk (1 in 10 chance to receive a 80% profit), anyone at safe has a 10% return at a 20% risk (4 in 5 chances to receive 10%) and so forth.

    This allows wars to draw down as factions start running out of money. if too much wars happen, wars become expensive. If wars become expensive factions stop fighting for too long and total curb stomps and faction deaths won't be a thing. For every time period where theres no war GSI drops by let's say 5 Points. (So for every 10 colony take overs, War declarations etc GSI will rise by 10, and it takes two time periods to drop 10 points of GSI).



    And that's the gist of Factional Economy. UC faucets through Investments, and UC Sinks through either bad luck/ bad investment plan and Wars.


    Here would be the Optimistic, Neutral and Pessimistic predictions of each faction over a 12 week time period investing 5 Million FF per week

    CPC (Terran Union faction) invests 5 Mil at Safe Option (10%)
    11 times Lucky, 1 times unlucky ( 5.5 million gain, 0.5 million loss: 416k FF weekly Income)
    6 times lucky, 6 times unlucky ( 3 million, 3 million: 0 weekly income)
    1 times lucky, 11 times unlucky (0.5 Million Gain, 5.5 Million Loss: 416k FF weekly loss

    AE Invests 5 mil at Low option (20%)
    11 Lucky, 1 times unlucky (11 million gain, 1 million loss: 833k FF weekly Income)
    6 Lucky, 6 Unlucky ( 6 Million loss, 6 Million loss: 0 Weekly Income)
    1 Lucky, 11 Unlucky (1 Million Gain, 11 million loss: 833k FF weekly Loss)

    NSM 5 Mil at Medium option (40%)
    11 Lucky, 1 Unlucky (22 million Gain, 2 Million Loss: 1.7 mil FF weekly Income)
    6 Lucky, 6 Unlucky (12 gain, 12 Loss: 0 Income)
    1 Lucky, 11 Unlucky (2 Million gain, 22 Million loss: 1.7 mil FF weekly Loss)

    Syndicate 5 Mil at Extremely High option ( 80%)
    11 Lucky, 1 Unlucky ( 44 million gain, 4 Million loss: 3.3 Mil FF weekly Income)
    6 Lucky, 6 Unlucky (24 Million gain, 24 Million loss: 0 income)
    1 Lucky, 11 Unlucky (4 Million Gain, 44 Million loss: 3.3 million FF weekly Loss)

    The statisticians amongst us would start calculating probabilities and if you do know the possibilities of acquiring each of these situations please feel free and tell me what the probabilities are so I can tweak the numbers further.

    Side Note: The Factional Economy, combined with Tax Rates can lead to interesting economic ideologies, lore wise, depending on the factions. Oda Zaibatsu which is an Asian megacorp might stick to Asian Social equality type ideals with a Medium to high Tax rate ( to equalise everyone) and a relatively safe Investment option.

    North Star Mining on the other hand which is more an Anglo-Saxon Free Market loving Capitalist style corporation may have low tax Rates and a medium to high risk Investment option but be at the risk of crashing on the Market.
     
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  2. Meliarion

    Meliarion Dweller
    Donator Alpha Tester

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    First of all your numbers are a bit off, as it stands all the investment options are guaranteed to lose the faction money over the long term. By using the Law of large numbers to predict the amount of money that a faction should make for the each of the unmodified investments.
    Safe:
    x*0.9*1.1+x*0.1*0=0.99x (needs a 9.1% risk or an 11.2% reward to break even)
    Low:
    x*0.8*1.2+x*0.2*0=0.96x (needs a 16.7% risk or a 25% reward to break even)
    Med:
    x*0.6*1.4+x*0.4*0=0.84 (needs a 28.6% risk or a 66.7% reward to break even)
    High:
    x*0.4*1.6+x*0.6*0=0.64 (needs a 37.5% risk or a 150% reward to break even)
    Extremely High:
    x*0.2*1.8+x*0.8*0=0.36 (needs a 44.5% risk or a 400% reward to break even)

    So unless you can use the modifiers to lower your risk to below the break even point then there is not much point in gambling with your faction funds and if you can lower your risk then you can use this to generate free money provided you have the capital to ride out the initial variances. After that with careful reinvestment you can give yourself a nice income stream, on the other hand if you are unable to hit the associated break point then those categories of investments are worthless. Since only the safe and low risk investments have a chance at being profitable and then only with active faction engagement and a sustained period of peace, A long running war between two factions will slowly ratchet up the GSI and only the factions with large numbers of colonies to patrol will be able to use the free money stream.

    As a side note it is almost 5 am here so I may have messed up my calculations a bit but hopefully the overall point should stand.
     
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