Topic: Tyrant: General Tyrant Discussion /
[Revitalize Tyrant] Warbond Stock Market
I propose one final update tp WMT before its closure – a stock market with factions.
Each faction could decide to issue a set amount of shares (which wouldn’t actually represent any stake in the faction, except in a strictly financial sense, as the shares will appreciate or depreciate based on how the faction performs), and then players could buy and sell them amongst themselves. Players would not be able to buy shares of their own faction, to prevent insider trading.
Let’s say the initial offering is 1,000 shares for all factions, and all top ten factions decide to participate.
Currently, PR is ranked 3 and TC is ranked 4. PR is priced 15 Wb per share, and TC 12. I might decide to buy 10 TC shares with 120 Warbonds, hoping that TC will surpass PR and take 3rd.
Sure enough, TC takes 3rd, and they get a new leader, who happens to be a very well-respected player. Both of these factors make TC a desired stock, and it’s share price increases to 18 WBs per share. If I choose to sell my shares now, I just made 60 warbonds! I bought 10 shares at 120 WBs, and sold them for 180.
Q: So, exactly what would drive the market? If investors aren’t actually buying partial ownership, why would they want to spend more on higher ranked factions?
A: Dividends! Shares of factions would generate a very small amount of gold for their owners every day. The amount would increase for higher ranked factions.
Q: Why would anyone ever sell shares of the very top factions then?
A: WBs. By taking advantage of changes in price, traders could game the market for WBs. This is why the dividends would be in gold and not WB – someone with 1000 shares of the number 1 faction could generate WB without any risk, and thus would have no reason to sell.
The gold for WB offers built into the client don’t give a very solid representation of the value of the two currencies in relation to each other. The solution? A currency exchange. Just like the IRL equivalent, Tyrant’s FOREX traders would be able to make money by betting on changes in the value of those currencies – with said value fluctuating because of those very trades.
Types of Orders
To save coding time, only a few basic order types would be implemented:
Market Order – Buy shares at market price
Stop(loss) Order – Buy or sell shares once they reach a specified price.
Sell Order – Sell shares at market price
Binary Up Order – Place a specified amount of WB on a stock’s appreciation in a set time frame.
Binary Down Order – Place a specified amount of WB on a stock’s depreciation in a set time frame.
Q: Eonian, I happen to be a hedge fund manager and day trader for Merrill Lynch, Charles Schwab and BNY Mellon with a lifetime experience trading futures contracts on like 10,000% margin. I was looking forward to making 1,000,000,000 Warbonds a day by making a bunch of short calls on the top factions, bear raiding them, and then selling my short calls for massive profit. Now, I find out you only offer the most basic order types, and binary options? Absurd!
A: While I’m sure Merrill Lynch & Friends appreciate your knack for the markets, but you have to understand $ynapticoin, despite it’s name, doesn’t. Our poor devs will probably feel bad just coding the stuff already here and thinking about how much money they don’t have. Besides, the current stuff might take them upwards of an hour to code and implement as is, so we wouldn’t want to burden any further.
Q: Eonian, I’m too stupid to follow all this stuff, and am afraid if this is implemented I might learn valuable information that might prevent me becoming broke at some point. You can’t do this to me!
A: But learning is fun! And money too! Latinas like money!
Q$yn: Eonian, I’m a $yn dev/employee. I don’t really do anything all day and really don’t want to code this for a dying game. Why should I?
A: Money. Putting in a fun, interactive way for everyone to use WB will encourage people to buy it, despite the game’s fast-approaching shut down. Those purchases of WB are in fact needed – they will act as injected capital, and prevent the market from becoming a zero-sum game.
Q$yn: I’m not convinced. You know I want to milk the last cent out of the WMT community, but if I’m gonna put time into this, why not just implement it in TU?
A: What is the average age of TU players?
Q$yn: Like, 8. Why?
A: Do you really think a stock market sim would make any money in TU?