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Post by debatesmith on Jul 24, 2017 18:11:00 GMT
Sadly it doesn't work. An interest based loan system doesn't work inside the fixed resource world of MC. There is no object/purchase that a person can buy today that they can't buy tomorrow. By taking a loan with interest they essentially make whatever they are purchasing cost more than it would have, if they had just spent a couple more days mining dias. Especially in your system where it's 1% every day, even the smallest and fastest loans would exceed a rational payback instead of just mining for a couple days. Even more so, if it's compounded interest. Now with your "bonds" system, the main problem is an impossible rate of return to keep up with. It's a good idea in theory (one that my bank tried to do with "accounts"), but when the loan system doesn't work, you end up just costing yourself dias to have other peoples dias sit in chests. I would love for a banking system to work, it adds an economics aspect that MC doesn't have, but sadly the systems just don't work. I heard you had a banking system, what specifically went wrong? I personally heard something about how stacks of Db went missing. This is a coming soon project. I understand the problems, which is why I am doing everything ever so slowly, changing interest rates, calculating specifically how much this or that would gain me, or if it will work. This is not in any way, going to be rushed. This could take over a month to fully set up. I am opening systems 1 at a time, so that I can manage that. I will also not be going inactive so that all the loans and bonds mess up, which I've been told other bank system owners did. I personally find it annoying when people say "It won't work". I like challenges, and I feel that if this was done properly, it won't flop. - Loans exeeding how much a person with a rank (Not ingame, I will be making bank ranks) can get, a rare will have to be traded to make sure that player doesn't just scam. The rare will be given back after the loan has been repaid. - Bank ranks. As said previously, People will have bank ranks. Level one, for example, can only be loaned a certain amount. How do you level up? By completing more successful loans / bonds or other facilities that we will be offering. Just 2 ways security will be enforced. Now, I have to disagree with your statement " There is no object/purchase that a person can buy today that they can't buy tomorrow". People sell items, yes? Well, that item will be gone tomorrow, as it will be sold to someone else! Oh no, what do you do! You really want that rare, but you are only getting your money tomorrow as your friend has it. What do you do!?!?!? Take out a loan. Buy the rare. When you get the money from your friend back, you pay the bank + Small interest. 1 of many ways loans are useful. I ended work on my bank when I took a different role on the server. Couldn't do both lol. But no dias ever went missing? We had a spreadsheet to keep track of everyones accounts. As far as I know, they are probably just still sitting in chests in the vault lol. Maybe Knootmare could look into that? EDIT: I just checked and yeah, Stoner's and brL's dias are still sitting in their chests lol. Knight, when you read this, could you please get those dias back to those players if they still play? Thanks. Like I said, I would love for it to work, it's a great idea I just don't think the systems work out.
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Post by Knootmare on Jul 24, 2017 18:24:36 GMT
Never knew the bank wasn't emptied out I'll return the investments whenever I'm online later on tonight.
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Post by Michael0z0 on Jul 24, 2017 19:05:41 GMT
I cant see this going well. Cheers for the good words my friend. Guess you won't be needing these services, will you now? nope I'm not interested in spending more for less
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Post by Nick on Jul 24, 2017 19:23:13 GMT
Cheers for the good words my friend. Guess you won't be needing these services, will you now? nope I'm not interested in spending more for less Doesn't even know what Interest is. Oh dear, deary me.
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Post by Kermie on Jul 24, 2017 19:29:46 GMT
could there be an option to open up a savings account? Like I store twenty diamonds at SquareAngle Central Bankā¢ and after a week I can withdraw twenty one diamonds? That's a pretty high interest rate but you get the picture.
I'm all for it either way.
didn't read the bit about bonds, sounds awesome.
double edit,
"To prevent scamming, the amount people can be loaned will be capped at 10 diamond blocks, or depending on who you are. This will double after each successful loan.
10 - 20 - 40 - 80 ect."
so this is like a credit system? AAA+, BBB, etc?
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Post by racecartacocat on Jul 25, 2017 0:51:41 GMT
As it'd be interesting to see this work for once, I'll put in 32 DB, but you won't have to pay me the usual bond interest. Only because I seem to lose a lot of diamonds when I keep them myself, I think free, safe storage would be great(for me). I'd recommend making the interest rate not be 1% a day because people who have to take out a loan probably can't afford that. A better plan might be, based on the amount borrowed, a set period of time before interest takes effect, give them a deadline and give them an amount of interest not subject to change if they pay by the deadline, or set weekly payments. The problem is that the interest rate is super high. A real-life loan would be set over months over years, and the person would have more time to make money. However, people don't live inside minecraft, and they can't spend all their time on mc making diamonds.
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Post by Nick on Jul 25, 2017 1:05:17 GMT
As it'd be interesting to see this work for once, I'll put in 32 DB, but you won't have to pay me the usual bond interest. Only because I seem to lose a lot of diamonds when I keep them myself, I think free, safe storage would be great(for me). I'd recommend making the interest rate not be 1% a day because people who have to take out a loan probably can't afford that. A better plan might be, based on the amount borrowed, a set period of time before interest takes effect, give them a deadline and give them an amount of interest not subject to change if they pay by the deadline, or set weekly payments. The problem is that the interest rate is super high. A real-life loan would be set over months over years, and the person would have more time to make money. However, people don't live inside minecraft, and they can't spend all their time on mc making diamonds. So will the 32DB act as a sort of donation - while still paying you back the DB in the near future. If so, then sure! It will only be going towards loans when people can start taking them. However, as this is a WIP, please do not expect to receive this money very soon. Keep this in mind. As for donations, I am setting up a donation system which will come into affect shortly. Also, 1% interest isn't expensive in any way. if you were (Just example, of course not possible) to borrow 1 diamond, it would take 100 days for you to have to pay an extra diamond as interest.
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Post by Kermie on Jul 25, 2017 1:09:37 GMT
As it'd be interesting to see this work for once, I'll put in 32 DB, but you won't have to pay me the usual bond interest. Only because I seem to lose a lot of diamonds when I keep them myself, I think free, safe storage would be great(for me). I'd recommend making the interest rate not be 1% a day because people who have to take out a loan probably can't afford that. A better plan might be, based on the amount borrowed, a set period of time before interest takes effect, give them a deadline and give them an amount of interest not subject to change if they pay by the deadline, or set weekly payments. The problem is that the interest rate is super high. A real-life loan would be set over months over years, and the person would have more time to make money. However, people don't live inside minecraft, and they can't spend all their time on mc making diamonds. So will the 32DB act as a sort of donation - while still paying you back the DB in the near future. If so, then sure! It will only be going towards loans when people can start taking them. However, as this is a WIP, please do not expect to receive this money very soon. Keep this in mind. As for donations, I am setting up a donation system which will come into affect shortly. Also, 1% interest isn't expensive in any way. if you were (Just example, of course not possible) to borrow 1 diamond, it would take 100 days for you to have to pay an extra diamond as interest. yeah, this is a problem. you see, you won't be able to collect interest on small loans assuming the debt is cleared before the interest adds up to a full diamond. If I borrow 10 diamonds, and pay you back after 9 days, before the 10 day mark, I technically don't owe interest. It would work just fine for iron/gold because the whole bars can be divided into ingots nuggets, but not so well for diamonds and emeralds.
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Post by Nick on Jul 25, 2017 1:17:01 GMT
So will the 32DB act as a sort of donation - while still paying you back the DB in the near future. If so, then sure! It will only be going towards loans when people can start taking them. However, as this is a WIP, please do not expect to receive this money very soon. Keep this in mind. As for donations, I am setting up a donation system which will come into affect shortly. Also, 1% interest isn't expensive in any way. if you were (Just example, of course not possible) to borrow 1 diamond, it would take 100 days for you to have to pay an extra diamond as interest. yeah, this is a problem. you see, you won't be able to collect interest on small loans assuming the debt is cleared before the interest adds up to a full diamond. If I borrow 10 diamonds, and pay you back after 9 days, before the 10 day mark, I technically don't owe interest. It would work just fine for iron/gold because the whole bars can be divided into ingots nuggets, but not so well for diamonds and emeralds. Stoner's already brought this up, and when I come round to editting (2 am for me rn) I will be introducing flat interest rates. Also, interest rates will always be 1% EACH day. When the player states how long it will be until they can pay, is only so that I can get an idea and carry out the loan well, and so I know went to double (After the time they said they would pay) the interest rates. 1% will be added on each day. So lets say you say 10 days. you will have to, in theory, pay 110% at the 10 days (Original money and 10% interest). If you were to pay on the 11th day, it would be 112%, as it would be 2% each day. if you pay on the 5th day, it will be 105%. I am also setting up a system so that you can't just pay the day after and pay only 1% interest. This will also come into play soon. I of course, will be changing interest rates, seeing what works best and getting everyone's opinion, so this is all in theory. Also, depending on your Bank rank, interest rates will be lower. if you are a regular person, it will, for example, be 0.5% each day. let me know what you think.
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Post by Kermie on Jul 25, 2017 1:31:56 GMT
yeah, this is a problem. you see, you won't be able to collect interest on small loans assuming the debt is cleared before the interest adds up to a full diamond. If I borrow 10 diamonds, and pay you back after 9 days, before the 10 day mark, I technically don't owe interest. It would work just fine for iron/gold because the whole bars can be divided into ingots nuggets, but not so well for diamonds and emeralds. Stoner's already brought this up, and when I come round to editting (2 am for me rn) I will be introducing flat interest rates. Also, interest rates will always be 1% EACH day. When the player states how long it will be until they can pay, is only so that I can get an idea and carry out the loan well, and so I know went to double (After the time they said they would pay) the interest rates. 1% will be added on each day. So lets say you say 10 days. you will have to, in theory, pay 110% at the 10 days (Original money and 10% interest). If you were to pay on the 11th day, it would be 112%, as it would be 2% each day. if you pay on the 5th day, it will be 105%. I am also setting up a system so that you can't just pay the day after and pay only 1% interest. This will also come into play soon. I of course, will be changing interest rates, seeing what works best and getting everyone's opinion, so this is all in theory. Also, depending on your Bank rank, interest rates will be lower. if you are a regular person, it will, for example, be 0.5% each day. let me know what you think. okay. so let's go through this scenario again. I borrow 10 diamonds, and I pay you back on the 5th day. As you said, the amount due will be 105% of the original loan. Still with me? Okay, so what's 105% of 10? The answer is 10.5. So how do I pay you back half a diamond? I can't. It has to be rounded to the nearest whole number. So I either have to pay you 11, which would mean I'm paying back 110% of the original loan, or I pay you 10, which is 100% and you make no profit. So how do you account for small loans which are paid back before the interest adds up to a whole number (or a whole diamond, if you would)?
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Post by Nick on Jul 25, 2017 13:21:35 GMT
Stoner's already brought this up, and when I come round to editting (2 am for me rn) I will be introducing flat interest rates. Also, interest rates will always be 1% EACH day. When the player states how long it will be until they can pay, is only so that I can get an idea and carry out the loan well, and so I know went to double (After the time they said they would pay) the interest rates. 1% will be added on each day. So lets say you say 10 days. you will have to, in theory, pay 110% at the 10 days (Original money and 10% interest). If you were to pay on the 11th day, it would be 112%, as it would be 2% each day. if you pay on the 5th day, it will be 105%. I am also setting up a system so that you can't just pay the day after and pay only 1% interest. This will also come into play soon. I of course, will be changing interest rates, seeing what works best and getting everyone's opinion, so this is all in theory. Also, depending on your Bank rank, interest rates will be lower. if you are a regular person, it will, for example, be 0.5% each day. let me know what you think. okay. so let's go through this scenario again. I borrow 10 diamonds, and I pay you back on the 5th day. As you said, the amount due will be 105% of the original loan. Still with me? Okay, so what's 105% of 10? The answer is 10.5. So how do I pay you back half a diamond? I can't. It has to be rounded to the nearest whole number. So I either have to pay you 11, which would mean I'm paying back 110% of the original loan, or I pay you 10, which is 100% and you make no profit. So how do you account for small loans which are paid back before the interest adds up to a whole number (or a whole diamond, if you would)? You won't be able to borrow 10 diamonds. What's the point in that? You could just go mining. Loans are meant for bigger amounts of money, so there will be a cap for minimum and maximum that can be borrowed, so we don't get this problem.
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Post by racecartacocat on Jul 25, 2017 13:33:44 GMT
Anyways, regarding the interest rate, it's still pretty high. With the 32 DB, it's like I'm setting up an irl bank account, but the bank is not paying any interest on my money.
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Post by Kermie on Jul 25, 2017 15:05:41 GMT
okay. so let's go through this scenario again. I borrow 10 diamonds, and I pay you back on the 5th day. As you said, the amount due will be 105% of the original loan. Still with me? Okay, so what's 105% of 10? The answer is 10.5. So how do I pay you back half a diamond? I can't. It has to be rounded to the nearest whole number. So I either have to pay you 11, which would mean I'm paying back 110% of the original loan, or I pay you 10, which is 100% and you make no profit. So how do you account for small loans which are paid back before the interest adds up to a whole number (or a whole diamond, if you would)? You won't be able to borrow 10 diamonds. What's the point in that? You could just go mining. Loans are meant for bigger amounts of money, so there will be a cap for minimum and maximum that can be borrowed, so we don't get this problem. gotcha. that makes sense.
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Post by Nick on Jul 25, 2017 17:47:06 GMT
I've borrowed 100DB at 5% interest for a month before. I'd have to pay way more with this system As I have already stated, this is a WIP. Also, we have ranks, meaning you must be a certain one to be able to borrow such amount of DB. Higher the rank means lower the interest. Please read the thread before commenting. Of course I'm not expecting you to pick out 100DB + lots of interest out of your pocket within a day. That's common sense - why would you borrow in the first place? I have been setting up a system for this (Loans of over 64DB).
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Post by Nick on Sept 3, 2017 15:13:03 GMT
THIS ISNT DEAD I JUST DON'T HAVE THE MONEY YET TO START DOING ANYTHING. I've built the bank though... Come see, Straight from PVP 2! If you can, put donations in the hopper there. All profits made will be put towards the bank. I really don't have the energy for this; Last year of High schools, and thus last year of my GCSES. I'll be taking this slow, as sorry, but School > Minecraft Priority wise to me right now. gyazo.com/dffea084588b93125f7006ef6c7a829dgyazo.com/7b4f4ef582a132e6908d58c715c44890
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