Topic: [Galactic Milieu] Macro-Economics News... (Read 18 times)

Recently the New Roman Denarius found its spot market prices had far exceeded their treasury-based calculated value.

While their most-immediate response was to drive down their spot market price to bring it closer to their calculated value, this has also opened up an opportunity to take a serious look at adding more assets into their treasury to increase their calculated value.

As readers hopefully are aware by now, the Galactic Milieu's treasury-based assets system is a kind of continuation of, or further layer of, the Milieu's policy of only tokenising half of the coins it actually has, so that half can be used if need be to buy back all its tokens while the other half can sit in cold storage to be the actual coins the tokens represent; that way even after buying back all its tokens the tokens can continue to represent actual coins rather than needing like many other systems do to in essence de-tokenise coins to buy back its tokens.

This policy means for actual coins on their own blockchains not only that trade in them can happen even if their blockchains get clogged up such as by driving their difficulty so huge it takes months or more for them to start moving again (as happened to FairBriX not so long ago for example) but also that for every token available to trade them with there are typically two actual coins rather than one stashed away; this helps keep coins off the market, increasing the relative rarity of "in the wild" coins that could potentially be "dumped" onto spot markets to manipulate prices or outright trash prices.

The treasuries system layers upon that by tying up tokens into "treasuries" from which the game calculates "calculated values" of the tokens.

It does that not only because the spot markets are usually massively insanely "inefficient" but also as another help toward increasing the relative rarity of "in the wild" tokens that could potentially be "dumped".

There is still some "dumping" that happens with various of the coins and tokens of course, but over time this approach should help mitigate that.

Nonetheless we still evidently have enough "dumpers" in the wild that for many coins and tokens the spot market prices have tended to be lower, sometimes quite a lot lower, than the calculated value used in the game.

Thus a time like this, when a Milieu currency has found that its spot market prices have been very much higher than its calculated value, is the proper time to consider adding more assets into its treasury, thus increasing its calculated value.

Accordingly, the proto-Romans (Romans by inclination but not yet having officially created an actual "civilisation" in the Milieu) are in negotiations with various other groups, in particular, apparently, the Ixians, about adding some of their currency into the treasury of the New Roman Denarius.

It should be noted though that most of the groups with whom they are in negotiations are not themselves in the fortunate position of having built up their own currency's buy-side on the spot markets to a value higher than its own calculated-from-treasury value, thus in most cases if a deal does go through the NRD they get from the proto-Romans for some of their own currency will not be eligible for adding to their own treasury; they would be receiving it into one of their "slush fund" accounts instead, hopefully to help them build up the spot market buy-sides of their own currency toward some future day when they too will succeed in building a strong enough buy-side to fully match, or even exceed, their calculated value.

This "slush funds" approach, wherein slush fund assets are not counted toward the calculated value of their currency, and in which ideally the total value of their slush funds should ideally match or exceed the total value of their actual treasury from which their calculated value is computed, acts as yet another factor in favour of viewing the calculated values as by-design under-estimations of value, increasing further the multi-layered depth of value upon value upon value by which the Milieu aims to enhance the value of its assets.


-MarkM-