A million quanta is cool, but you know what’s really cool.......?
Scams are great, but if you want to make really moneys. Institutional control kinda moneys, you need to build trust and incentivize rational behavior. Be transparent and put large amounts of your own money into the enterprise.
I wouldnt invest in a DU bank that didn’t have any of these in a million years. Commercial, retail and private banking are all unnecessary in DU and are all definitely a scam.
My name is BandaTalk. I am the general partner of the Alioth Fire Office and the owner of BandaTalk’s Coffeehouse.
The ALIOTH FIRE OFFICE is an asset management and financial services firm organized as a private limited partnership. The AFO is primarily devoted to serving the shipping/hauling and commodities/mining industries within the DU.
AFO is NOT a bank and will NOT accept deposits and will NOT participate in any form of commercial, retail or private banking.
I would ideally like to work with the DU equivalent of “accredited investors”, meaning those of high net worth and institutional investors, meaning other organizations. This would be a means of protecting my reputation, as hopefully I’d be seen as not wanting to prey on new players or quote-un quote “stupid people” and am only interested in managing investments in a safe and complex way, which allows the parties involved to see a return regardless of the overall state of the economy. If this sounds like a hedge fund, that is intentional, I was going for that. Hedge funds are the real world version of an unregulated investment fund, which is perfect for an unregulated world like Dual Universe. The AFO would be set up as a private limited partnership, with me as the general partner, meaning I would assume sole responsibility for the AFO liability in the case of default or other credit event. Limited partners would be able to remain anonymous if they choose. I, as the General partner, would receive 2% of total assets every year and 20% of profits for each successful investment (which would primarily be bond issues). This is identical to a real world hedge fund and is intended to increase trust in the fund’s manager as they have a huge stake in the fund’s success. I’d also, invest large portions of my own private wealth into the fund. Limited partners would receive a monthly dividend TBD also based on the profit of a successful investment. I foresee, it being difficult to attract limited partners as trust is a premium and y’all don’t really know me yet. This is okay, I don’t really trust you guys either yet, but I hope to work and build trust with you over time as we get to know each other. Limited partners would be able to withdraw the principal of their investment at anytime.
Some of you may know a little about the MD and the financial industry in Eve Online, particularly the activities of players like Hexxx, Angelica Everstar, Grendell, and Chribba. Hexxx, for example, sought to recreate re world financial institutions with in game analogs, such as EBANK, which utilized a fractional reserve system similar to that of real world banks. The problem with this is that the world of New Eden in Eve Online and by extension the future of world of Dual Universe, are unregulated economies in which scams, market manipulation and money laundering are all common place and accepted. This is offset in several ways by employing trustworthy individuals such as Grendell and Chribba, who hold collateral as a security against default. Again, a problem with this is the nature of collateral, what you can and can’t put up as collateral, what the value of the collateral is and how liquid the collateral is. An example of hedge scam (or strategic default, depending on how you look at it) occurred in Eve, in which a collateralized loan (which was more of a bond issue as it took money from multiple investors and not from a bank) with monthly interest was put up, Grendell verified the collateral and its value (at over 100%) and the loan was deposited in the player who took out the loan’s account. The first round of interest was paid out and everyone was satisfied. The second month deadline passed and people who had put their money up for the loan started to question where their interest payments were. After a while longer, the player who took out the loan informed his investors of his intention to keep the principal of the loan and stop all future interest payments. This left Grendell with the responsibility to pay back the principal of the loan using the collateral. Unfortunately, the collateral put up was overvalued by Grendell due to it being a cheaper commodity, whose price sinks significantly when sold in large quantities. Grendell then asked the investors if they would prefer to receive the collateral itself as payment or who prefer that he liquidate it and pay them in cash. They decided on a half/half solution, in which half would be paid in the collateral itself and half would be cash proceeds from the sale of the collateral. You can find the record of this event here: https://forums-archive.eveonline.com/topic/470872/
My solution to this is bond insurance, which would shift the liability from the bond issuer to the insurer in exchange for a premium, allowing them to issue bonds without any collateral and guarantee that the investors would receive their entire principal in full in the event of default or other credit event. This would involve the insurer either putting up collateral which would be verified by a trustworthy third party or by having a verifiably large cash reserve, either allowing them to pay out the insurance in the event of a default. The insurer would able to hedge their risk by purchasing reinsurance (or a credit default swap, which would be different in that the buyer of the CDS wouldn’t have to disclose all the risks involved, whereas with reinsurance, they would), at a slightly lower premium than what they are receiving from the bond issuer, and the reinsurer would be able to continue the chain by buying their own reinsurance and so on, only stopping when a party decides that the they think the bond issuer won’t default and they can walk away with a profit in premiums.
An example of a bond issue would be as follows: Q5,000,000 worth of fixed rate corporate bonds with a nominal 2.8% monthly coupon, actually 1.8% monthly coupon after insurance, at 6 month maturity are purchased. This means Q90,000 is paid in interest monthly. The issuer would charge a 1% monthly premium (premiums would fluctuate and be based on the probability of default as determined by the insurer) taken from nominal 2.8% on the bond. The insurer would also charge a 2% service fee with every premium payment on top of the premium. Each monthly premium payment would be the equivalent of Q50,000 plus Q100,000 as the fee. 1% would paid to the third party service out of the 2% service fee to the insurer. In the event of default, the insurer would be able to do pay the entire principal back to the holders. The Insurer would have to have at least 110% of the value of the bond issue in reserves to pay out principal in the event of default. Collateral from the insurer would be secured by a trustworthy third party if possible. Collateral would have to have high liquidity as confirmed by the third party. Any excess in assets above the collateral requirement would potentially go towards buying bonds issued, though this is capped provisionally at 20% of the value of the bond issue, another means of hedging risk. The Insurer would buy a Q5m or Q4m Credit Default Swap with a monthly premium of 1% from another bank. If the issuer defaults, the insurer pays out the principal on the bond, then receives Q5m from the CDS, making around 1% if the issuer defaults.
The users in this system would be as follows:
The “Issuer” is the party who is seeking investment and which works with the BIHF insurer to conduct the bond issue.
The “Insurer” is the party which assumes the liability for the bond.
The “Third party” is a trustworthy individual who secures the collateral during the bond issue.
The “Holder” is the party which owns the bonds and which is entitled to the principal being paid back.
The “CDS Writer” is the party that sells the CDS to the Insurer, who is hedging their investment.
The hedge fund-like part of my business plan would be called the AFO Bond Assurance Master Fund (AFOBAMF). AFOBAMF would have investments in bond insurance, with protections in the form of purchased CDSs and/or reinsurance, commodities, real estate, stocks, bonds and collectibles. The other part of my business would be a Mineral Reserve, which would buy minerals at low prices before the inevitable MMO inflation and collect minerals through direct mining. This mineral reserve would act similarly to how gold reserves backed currencies during the gold standard era. It would the basis of the AFO’s wealth. For example, on day one I’d buy 3000 units of gold ore at Q3000, for a total value of Q9,000,000. As the price rises the result will be completely profit.
The AFO’s real estate properties are planned to include AFO headquarters on the Sanctuary Moon and BandaTalk’s Coffeehouse in Tortuga City.
You can join by clicking on the links below:
https://community.dualthegame.com/organization/alioth-fire-office
https://community.dualthegame.com/organization/bandatalks-coffeehouse
Ah this is a common idea that have appear in the forum for a long time. Much people in DU have intend to be Space Trucker or Space Taxi already. Also the idea about transport newbie for free are being plan by some org if i not wrong. But still too soon to say anything so let wait.
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There are plans for transport by various organisations. However, the game is still in pre-alpha and a lot of mechanics are being tested out - both by the devs and players. I am sure that by Beta there will be systems in place to cater to the needs of players far and wide. For now, however, I defer to ShioriStein's reply: it's still too soon to promise anything right now.
Let's wait until Alpha and Beta.
Consoles are just too weak, on top of that it would require either an entirely new team to port the game to consoles, or have the current staff (30-odd-some ) split their time among the two which simply wouldn't be feasible.
Considering nentindos family orientated history, I personally doubt this would happen for the switch or any future nentindo console.
If you want mobile portability, your best bet would be a laptop specifically for gaming. I'm no expert on these laptops, but I would call into question their upgradeability.
And if even that isn't an option, geforcenow would probably be your best bet though I fear its eventual subscription-based service would mean that you'd be better off, in the long run, getting a gaming laptop.
From this point Dev hasnt say much but from Claim system and RDMs (Right & Duty Management System) it can create a some of your list:
First you need to claim the land into your hand. You will need a thing called TU ( Territory Unit) which will claim that land and put all thing inside that land under its RDMs. Then the game begin:
+Land deed: You can transfer your land as you transfer the owner of the TU.
+leasing and renting: You can create a tag from RDMs to create a warranties to give player temporary right to do anything in there in a certain of time (or until you remove it from them ) and make them pay the next money to keep the tag.
+subfueldination: i dont understand what is it.
+property tax: Well this thing i dont know much yet about it.
+collective ownership: ?What it mean, you mean organization property ? Hmm from what i view of the dev blog, you cant alone grinding or have enough power to get or protect a TU as it is expensive.
+public land: You can set tag for everyone to bypass or get inside your land.
+ arbitration of disputes: You mean solve conflict between 2 side about who own the land ? Well in DU if any org can grow to big enough and it happen in side their range of power then yeah it will be a thing, but if not only WAR.
+land registry : Like i say you can claim a no man's land but if it is other people ? buy it. Take it by force. rent it. trick the owner.
@BandaTalk
Black market is a thing always have in any game with or without a work economic in game. It born to satisfied the greed of the player so yeah it iwll ahve inside DU but it will be something more detail as DAC is a part of game.
There will clear stock/ ... market in DU as it is a way for player to trade with other but the thing is how it will be born ?! IT will born on the demand of the market. At the beginning you will see there will be small trade like i need this of your and you need this of mine so let trade. But after the start stage and piracy appear ( a lot of Org in DU have set this as a way to grow and one of them is very big ) also the scale will increase will create market. And black market is for people who dont trade in the light ( high wanted , got a lot of bounty on their head, ... ) and the so...
About insurance ? Lucky that Dev have see this part and agree to create a function for people who want to work in this side.
And about the bank... not much clear as much people here is from EVE (one of the most successful MMO and working economic ) not have a nice look about bank as this is a virtual world so do the responsibility.
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