Jitta Sukarala
Mechanical Markets
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Posted - 2014.10.15 18:24:00 -
[1] - Quote
So I had an idea today and it might just be silly, but I'm posting it for feedback.
Essentially, there will be an additional contract type called 'Loan' (yes, very inventive). A loan contract will allow the contractor to select from a couple options, notably: garnishment or liens. The garnishment feature will be based on the proposed loan, while a lien is just essentially collateral in the possession of a recipient. Under the garnishment window, you can select one or more of different forms of income that the recipient utilizes to earn isk.
There will be sub-contracts related to the contract in question (I'm thinking of how this could potentially be programmed as well) where the recipient could transfer normal payments to count against the loan thereby lowering the garnishment percentage if they wanted to pay it off faster. Otherwise they could continue to play normally and run missions and a portion would be transferred to the provider until the loan is paid off in full. This could also be used for market and contract transactions, where a portion of the value being sold (similar to taxes) would be given to the provider. The interest rate will be selected by the provider.
Liens would essentially be collateral that would cover the cost of the loan. The contract would have a time limit and if the sub-contract for the lien is not fulfilled then the items are kept by the provider.
Example 1: Player A loans Player B 100M under a loan garnishment contract. Player B uses the funds for something, let's say creating ships/items. They sell these items on the market. For every transaction, Player A is paid a percentage of the sale set by the provider. If the percentage is too high, then obviously the provider is not creating reasonable loan conditions and this can be turned down at the onset, but otherwise a portion is deducted until either the full amount is paid (under a sub-contract that is tied to the original contract) or garnished from the income earned by Player B. The reason for the sub-contract is that it allows the borrower to just make larger payments to bring down the total amount owed, which would, in turn, lower the garnishment percentage. This incentivizes Player B to pay back the loan faster.
Example 2: Player A loans Player B 1B as Player B is a missioner and needs a new ship. Player B uses the money to buy and fit a new ship to run missions. For every mission, a portion of the income earned is garnished and provided to the borrower until either the loan is paid off under the sub-contract or sufficiently paid back through garnishing the mission income.
Now these aren't exclusive and a borrower can set multiple forms of income (market sale fees, missions, contract fees).
Liens are pretty self-explanatory. Player A proposes a loan amount to Player B. Player B has to select a number of items commensurate with the value of collateral set by Player A, a contract date is then set and Player B has until the contract date to pay the amount or the goods are kept by the provider. There could also be an option under Lien to provide the collateral to another player to hold (and the station where the goods are kept, which obviously the borrower or third party wouldn't want in a station where they are locked out of), in which case the recipient of the goods in collateral would hold on to the items until the contract expires and it flags the three people involved: provider, borrower, and 3rd party.
Now there are downsides to this system:
A) it will create another contract scam(s) B) a borrower could just transfer the amount to another character and biomass the character C) it may marginalize third party services, but I could still see them being relevant for liens especially for large amounts
In regards to the borrower, they will need to read the contract carefully as in the case of all potential contract scams. In terms of downside B, well...people loaning money will still have to do their homework, request APIs, and gauge risk but this could be a more formal implementation of a loan system not merely based on blind trust.
There could also be a small fee under this system that could provide an additional isk sink for CCP and maybe even the introduction of a new trade skill that will lessen that fee from 5%-1% of the total value of the contract (not sure if this is even needed though, but I'm just putting it out there).
Anyway, I'm posting this for feedback. I know MD will likely tear it apart (or maybe not), but I was just thinking of a way of formalizing loans in the Eve economy as it would provide an additional, and sorely lacking element, in the economy that is currently plagued by a history of scams and distrust.
Have at it.
PS: Don't disappoint me Rimmer. |