I am re posting here the post on the EUR (E1) markets that was deleted from the main CK thread.
1. Earliest 6 game-days from this notice, every single FUCK will be taken from its owner and consumed with no obvious effect. (Multiple FUCKs are unaffected.)
2. 1*E1=10,000*M peg was removed from the marketmaking. E1 (as well as everything else) floats freely now, infinite ladder by Coinshop.
3. Currently circulating M certificates will retain fixed conversion (EUR 10 in banknotes for 100,000 Markka in certificates received and vice versa).
4. Every time the price of E1 reaches 7,000*M, each M will give 1*M newdividend (ie. item:M quantity doubles and percentage ownership is unaffected).
5. Certificates are excluded from the dividend, so it is possible to keep a part of your stash as darknessmoney (cash), but the lightmoney (changelog) pays dividends over time.
Here are my thoughts on all of this.
Markka, M, is both the ingame currency for CryptoKingdom and equity in CryptoKingdom itself, since it is CK re-denominated. This is like using stock in Linden Labs rather than Linden Dollars as the in game currency in Second Life. Personally I find the idea very appealing since effectively CryptoKingdom is owned by its players.
Pegging M to EUR made no sense at all. This was aggravated by an artificially high price about 3.5x the market rate and highly restricted market for EUR withdrawals. So to say the least I am very pleased that this artificial 1*E1=10,000*M peg was removed from the marketmaking and E1 will be allowed to float freely. Nevertheless E1 is to say the least very inefficient for deposits and withdrawals, especially when compared to M3 and B1. It would make sense to do market making for E1 based upon M3/M and B1/M rates and the EUR/XMR and EUR/XBT rates.
Re-denominating M based upon the market value of E1 makes sense to me provided that that it is based upon proper market discovery, which in practice may involved the M3/M and B1/M rates and the EUR/XMR and EUR/XBT rates.
I fail to see the point of a separate item for E1 certificates unless these certificates charge or pay interest. If someone wishes to hold EUR in CK why can't they just hold E1?
Edit: A stock split and a stock dividend are in reality the same thing, although some tax authorities attempt to distinguish between the two.
I hope this post fares better in this thread.
I also think that having the ownership tied to currency is a neat idea, when tied to a game. I suppose it would also be partially equivalent to using Activision Blizzard stock as WoW gold. Partially because they offer multiple games that use different currency, and because those games don't offer property of value (with title to non-fungible land), though they do offer fungible items.
I'm a little on-edge about non-fungible land (titles to land in chapelries), due to seeing how the Star Wars MMO ended up with so many barren houses, but haven't put much thought to that yet. Maybe if it's designed well then it'll be different.
I'm still a lot confused about the E1 peg, unless it was an attempt at an early buy-out or something. Maybe it was just the act of giving without a fuck? Maybe it was an attempt to confirm the belief that, today the proclamation could be made that he's definitely probably got another million in his pocket (25% outstanding Markka ownership i think is what he's got, and said it won't go below 5M cap). Maybe a lot of things, as instructions seem to come day by day
As far as E1 certificates - maybe a CYA to say 'oh its game items don't pay attention'? Also the exchange for certificates, assuming the reach is greater than that of the current walking ATM's, would allow for digital movement of E1 from one to another without having to exchange for something else. This of course hinges on whether or not physical Euro's can be redeemed IRL. I don't have a passport ATM, and don't have anyone locally in which to guarantee this is the case, so have chosen to assume that the truth has been spoken in regards to there being 800k or so Euros that can be redeemed from walking ATM's and/or depository in some location somewhere in Estonia, probably in or around Tallinn, I'm not familiar with the geography.
Good point about the stock split == stock dividend, hadn't thought about it like that. But dividends typically are given in fiat, and the choice is often (to the point where it's just a checkmark), but not always, to buy stock with that fiat that was divided. In this case, with the stock being the same as currency, they are the exact same.
Here is a snapshot of the CryptoKingdom depository markets and their pricing in terms of Markka (M) and Monero (XMR)
In terms of Markka
M3 (XMR)
32,789 (Ask) 32,464 (Bid)
B1 (XBT)
184,149 (Ask) 182,321 (Bid)
E1 (EUR)
90,000 (Ask) 10,201 (Bid)
Now here is where it gets very interesting. I used the mid market price for M3 (XMR) 32626.5 and recalculated the prices in terms of Monero (XMR) and compared them with the external free markets
M3 (XMR)
1.005 (Ask) 0.995 (Bid) 1.000
B1 (XBT)
56.44 (Ask) 55.88 (Bid) 57.92 (Market price from Coinmarketcap
https://coinmarketcap.com/#BTC)
E1 (EUR)
0.02758 (Ask) 0.00313 (Bid) 0.05181 (Market price from Coinmarketcap
https://coinmarketcap.com/#EUR)
Can someone please explain to me why anyone would sell EUR for 0.00313 XMR each (319.5 XMR/EUR) when the current market value is more like 0.05181 XMR (19.30 XMR/EUR)? We are not talking futures contracts here or are we?
Thank you very much for doing this, I've wanted to do this, or something similar to it, for a few days now.
Stability wrt XMR at this point with these numbers would indicate that B1 should stabilize ~ 60, and E1 should stabilize ~.05.
Seemingly there is unease in owning E1 itself, as its only withdrawal method being physical atm.
Maybe it's just to analyze/measure the rate at which people will pull 'x' currency out of the system, and move forward accordingly?
Add: of course there is the very real possibility that stability with xmr does not happen, or does not happen very long, as I did see the claim somewhere that the costs of depository shares are going down on the return of 100 billion markka.. in which case I would imagine the relentless selling of deposited shares would likely continue .. albeit with less confusion than before.