Tippia
Sunshine and Lollipops
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Posted - 2011.02.09 21:42:00 -
[1]
Originally by: Kallista Naari Ok, I don't get why its a faucet.
Because faucets and sinks are system-wide events, not something that happens in your wallet.
Quote: You pay 50 million for a ship, and 10 million for insurance. You have paid 60 million for the ship. It pops, and you get 45 million, what happened to the extra 15 million?
You pay 50M for a ship ù this ISK is transferred to another player and does not leave the economy. You pay 10M for insurance ù no-one receives this ISK. It is removed from the economy. You get blown up and receive 45M ù no-one gives you tisk ISK. It is added to the economy.
The 50M you pay for the ship are economy-neutral: it's just the same money being moved around between different owners (ok, not quite true ù you pay taxes on the transaction so it's a minor sink, actually, but so small as to hardly matter on the whole). The 10M cost and the 45M payout, however, removed and added back ISK into the economy from an infinite sink and source ù "faucet" ù respectively. So in total, in your scenario, 50 million has been moved around without the economy noticing, but a net total of 35 million ISK have been added out of nowhere. This means that the insurance mechanism as a whole is a faucet.
As others have mentioned, it will only become a sink if you keep paying that cost without cashing out the pay-out until after the accumulated cost is more than the payout would have been. The thing is, this is a thoroughly unlikely event since most sensible players will have stopped paying for insurance long before this happens. ùùù ôIf you're not willing to fight for what you have in ≡v≡à you don't deserve it, and you will lose it.ö ù Karath Piki |
Tippia
Sunshine and Lollipops
|
Posted - 2011.02.10 08:25:00 -
[2]
Originally by: Woodman2 Without knowing how much is paid into insurance game wide, vs how much is paid out, it's impossible to determine.
Fortunately, we know that because they published some numbers on it some time ago. It's roughly a 1:3 ratio between insurance costs and insurance pay-outs. ùùù ôIf you're not willing to fight for what you have in ≡v≡à you don't deserve it, and you will lose it.ö ù Karath Piki |