Interest Rate in the Bank

[Deadeye Jack]

I figure this would be the place to bring this up.

As you are all aware (or maybe not), every day you post on the forum you gain 4% interest on whatever you have on the bank. Sauron and I have been racking up a lot of money due to this very generous rate. You won't get interest rates like that anywhere in real life.

Here is a calculation for you if you put $1 in the bank today and posted everyday for a whole year that means at the end of the year you would have 1.04^365 = 1,648,803.28 . Now take a millionaire like Sauron or a near millionaire like me and gives us a 1.6 million multiplier on our money and that gives us some absurd amounts of money. It's untenable to have a system with such high inflation that theoretically everyone could get to.

My proposal is we change the interest rate to make it so you only earn the equivalent of 4% on your bank total every month. We would convert that to a daily rate. So you still have to post daily but the money isn't quite as obscene. It's still a much higher rate then you would see in any bank in the real world.

What are your thoughts? Do you have different percentages in mind?

[Shizensky]

This sounds fair to me. I like that we're not nerfing interest to irrelevance so we can still reward people for checking in often.

[Sauron]

As long as it is much better than the pathetic rates in XKI as it's not worth keeping in the bank. I'm getting near enough 60k in interest and it shoots up 2.5k+ a day so yeah very untenable.

[Benevolent Thomas]

If our richest citizens are asking for this, we shall make it happen.

[Sauron]

But do it tomorrow

[Benevolent Thomas]

Already made the adjustment. Keep your eyes on the interest the next couple of days and tell me if you think the change is fair.

[Deadeye Jack]

It makes money go up by 5.3 times in a year. I suppose that's much better than where we were at. I think the other side of this "too much money" problem, something Dead West brought up elsewhere, is we need more things to spend it on. Maybe like houses or something.

[Sauron]

The casino.

[TheDeadWest]

The Casino to a certain extent will work once it offers more potential games. That's one big reason I support Kozmix's idea of a XKI like Casino set up because it's an effective Sink. But also I was thinking more of a luxury items. I don't know if anyone played Kingdom of Loathing but they have items that existed just to be "meat sinks" or rare items only for the ultra rich. Like exclusive animals such as a Golden Calf or A Special Achievement that could be purchased for a super high sum of money, maybe on that changes yearly to make it exclusive and attractive. By offering a potential Variety of way to sink money we'd reach more people and equalize the economy easier. We could even ask for Mansions to be added on the Map that require a combination of things to purchase such as owning at least 1 business having 1 of each animal, having at least one of the yearly "money sink" achievement and then purchasing the Mansion. The idea is they need to be sufficiently hard to get as to feel exclusive and important.

Now this is necessary for a few reasons 1) it's equalized the ability to participate mildly equally in the economy. 2) It continues making dollars as rewards for participation in events lucrative and fulfilling to all participants if money is rarer. 3) Solving the interest rate slows growth but doesn't not keep the unbalance from happening as they will still accumulate more money than the rest over time. 4) The money the spend could also be used to other activities to further equalize opportunity between new and old member such as going into event funds or into a New Member Loan program and even further decrease any potential inflation by insuring we aren't just constantly producing more dollars at a massive rate.