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Worm Farming Economic Reforms

Goldtokens Resident Posted by in Announcements - December 2, 2015, 11:10 am

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Before we explain what we've done to improve Fish Hunt for everyone we'd like to define the problems that were plaguing worms market/economy and worm farmers.

PROBLEM 1: Overproduction

In economics, overproduction, oversupply, excess of supply or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment.

In our case the product are worms and it has come to certain conditions on Fish Hunt worms market where worm farmers had to start undercutting prices of each other just so that they were able to sell their grown worms because otherwise their produced worms would stay stuck on the market.

PROBLEM 2: Thinning of profit margins on worms sales

Is very much related to 1st problem to overproduction. Because there were too many worms on market they couldn't be sold and producers started lowering prices. Its basic supply & demand - if the supply is too big it leads towards price of the product getting lower and lower to the point where it isn't worth it to produce due to negative profit. Many of our fellow farmers simply stopped running their farms or paused until the conditions on market get improved again.

Problems in Fish Hunt fishing economy have lead towards some bad blood and spreading of negative sentiment in our gaming community which is against our community ethos. We want to keep conditions in our games and community where all our players can feel productive, useful and achieved so that they can enjoy, be happy and have a sense that they're part of something big (our community consist out of over 95330 people from all over the world that have a gaming account with us). Its on us game providers to find a way how to create optimal conditions to keep everyone happy.

Fish Hunt Worm Farming

SOLUTIONS:

To solve most persisting problems described above we came out with solutions that can improve the worm market and fishing economy on overall for everyone.

To fight overproduction (which is domination of supply over demand) we looked for ways how to temporary artificially decrease the supply of worms hitting the market so that the supply is more in tact with demand. Condition where demand is aligned with supply is called EQUILIBRIUM and it is a condition that we want to reach and when reached it will keep everyone happy.

At worm market equilibrium condition every worm that is produced finds a fisher who needs it for linden fish extraction.

Now all farmers have bought farms (which is a right or license to produce virtual worms to supply to Fish Hunt fish market), farmers have paid money for that right. We can not simply take away that right and tell farmers not to farm for some time as this wouldn't be fair and we also don't want (and we think its not ok) that the farmers simply stop farming on their own because they can't make profit. We have found a way to reduce supply of the worms to the Fish Hunt fish market that is equally fair to all of our worm producers.

The only fair way we can deal with overproduction of worms

We are perpared to increase the growth time of worms in everyones worm farmers worm farms to a point where everyone can easily sell their produced worms at a profit. So that is what we have done. Ofcourse that makes every worm farmer have to wait for their little worms to mature a bit longer but what is important is that a worm farmer can sell what they have produced at a profit. We are aware that some individuals may not like it or not be able to understand why this is needed but we have to deal with market realities and you have to be aware that the only reason why we're fine tunning the supply/demand of worm market like that is to improve the whole game system for everyone.

Ensuring that there is a profit for every worm farmer

To additionally ensure that there is a profit for every worm farmer when they sell their worms we have decreased the cost of worm production by lowering the cost of supplies needed to grow worms. Doing that we can ensure worm farmers that they can make appropriate profit for doing worm farming.

Extending the time little worms need to mature is needed so that worm farmers at the time when they're ready to sell their worms can do that fast and with decreased cost of production they can do that at a profit.

Cost of supplies for worm farming was decreased on our inworld store at Farm Frenzy (near Fish Hunt Headquarters): 
http://maps.secondlife.com/secondlife/Business%20Park/172/222/22

Concretely the cost reduction of worm farming ingredients:

  • Small Worms Pack changed from 10 L$ to 7 L$  (possible to get it at 6 L$ with the use of gold tokens-gts)
    2 units of BIOWASTE instead of previously 3 units of BIOWASTE is needed for Small Worms Farm.
  • Tasty Worms Pack from 15 L$ to 13 L$ (possible to get it at 12 L$ with the use of gold tokens-gts)

*Cost of supplies of Enchanted worms is staying the same as they already provide sufficient profit; Cost of supplies for Magic worms is directly related to cost of supplies for Enchanted worms as Enchanted worms are main ingredient for Magic worms.

It is very important that we get the economy of fishing in Fish Hunt right. I can say that whenever we got the economics variables in Fish Hunt right oin the past we have experienced tremendous growht in the number of Fish Hunt Buoy Owners, the number of Fish Hunt fishers and the number of Worms Producers. Our vision is to lead the biggest gaming community in virtual world (Goldtokens.net) and our goal is to keep providing the tools for Second Life Landowners that enables them to tap into and to be a part of our largest and fastest growing community of users of virtual world and consumers of virtual goods and services.

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Community Comments

Skeghead Resident
December 2, 2015, 6:07 pm -

RIGHT ON Wili ! worms have been  sold at a loss for months. I don't own a farm but i'm buying LOTS of worms at GREAT prices before the price raise :)


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Dom24 Dezno
December 3, 2015, 1:05 am -

maybe a better or another way to solve this is " create demand " 

get more players involved in the game by ( better prices etc ) some competitions get creative here

lower the times for fishing .. more warms used 

 


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sinfull1 Resident
December 3, 2015, 7:42 pm -

Competition is great for causing creators to think outside the box and be creative, but in this case, wouldn't shorter cast times drain the buoys quicker and cause the landowners to have to fund the buoys more often? Creative solutions arent necessarily better, theyre just diffrent.I think more fishers  - players - will come when they see a thriving economy built aound farmers and fishers and landowners needs. I think wili has devised a good solid plan that considers the community as a whole,, and i'm excited to see what lies ahead  


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Thommy6 Turbo
December 4, 2015, 5:02 am -

I wrote following yesterday, but didn't appear here:

Ty Wili for reducing the farming costs. I have another suggestion: What about reducing the casting time again? In former times it was 45 sec with small worms, now it is 60 sec and more... with tasty worms it was about 30 sec, now it is 45 and more. So fishers will buy more worms.


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KriJon Resident
December 16, 2015, 7:50 am -

In response to reducing cast times, it would cost the game land owners.  LGH is a game of balance, with many markets. If any one of these markets fails to be profitable, the rest of the game suffers. Re-stabilizing failing markets always appears to have a negative impact to some players, those who were benefiting from unsupportable higher profits. If you want to the real culprit – it is simple greed.

The reality is, for all fishers, the more copycat games are played, the more they, and LGH, must compete with each other. Inevitably, this means the more demanding landowners can be regarding the price they pay to attract people to their land via these games. This is natural behavior, why should (or would) a landowner pay more than they have to, if they can attract us to a game for less?  Also, we now see many landowners with multiple games on their land.  Playing copycat games increases the odds that landowners do this.  Behind the scenes I have to believe they are negotiation with games owners, lobbying for lower costs (since now they have multiple games to support). And each time they save money, it costs the players profits, not just in LGH. Inevitably, all games must either accept losses or reduce player profits. Games that accept losses over long periods of time eventually go belly up, as do all their player’s investments.

I heard many wonder how “Wili” has lasted so long. But this is why. He tweaks, makes adjustments, and sincerely wants to create a game that is complex, challenging, but mostly community oriented. Players who care only about profits and not the community abound in LGH. They are everywhere, complaining each time it appears their current profits are reduced. They point fingers, whine and create drama in the chat. The reality is, they can’t see the big picture. But they put on quite a show and often convince new players they are right…but the reality is they’re not about community, they are about themselves and they are just greedy.

Many 'greedy' players who choose to fish based solely on what game is offering multipliers at the time. In doings so, they are essentially putting all games, not just LGH, under greater pressure to pay players less. If games fail to be profitable, they go away and all our investments with them. Over the years many of these games have come and gone, LGH is still here. I fish only LGH these days, especially after seeing some of the drama within the other games. They are newer and don't really know how to deal with manipulations of the markets or cheaters (and in some cases were created by cheaters LGH told to take a hike). 

In LGH, I have a game creator (Wili Clip) who listens, considers (and that is key here, he doesn't react) and tries to alter the game to keep it sustainable. Unless you play all aspects (or oversaw the creation of all aspects as Wili has), it's hard to see how they all impact each other, players, landowners and the LGH system as a whole. If you have a suggestion, submit a ticket - Wili will hear about the reasonable ones for sure. Don't assume because you didn't get a response that no one read it. Like LL, Wili and all the GM’s and Elders are super busy - and I would rather they spend their time implementing improvements that make sense rather than listening to me whine about things (yes, I whine sometimes too...we have very tolerant GM's in LGH - smiles).

These same concepts are true when we purchase supplies within the game at less than profitable prices. Buying Magic Powders for unsustainable prices does not benefit the game or, in the long run, the player. It will put other Magic Powder providers out of business (and possibly out of the game) leaving a monopoly (at least for a short time) for those who underbid. It allows them great profits (potentially) at some point. It's not hard to figure out how much it costs to produce Magic Powder. Go see the price of the recipe in the Craft Hut and then price the ingredients. Then add a reasonable profit to it all (10-20%). If you are paying less than that, you are risking significantly higher prices in the future.

LGH has the most complex game on the grid. If you invest beyond a beginner’s rod and small worms, you can LOSE linden. Playing beyond the basics requires careful, global, community based thinking. However, there are also good lindens to be made if you try to consider a sustainable economy instead of quick and greedy profits. Let's be honest, those greedy folks are still playing LGH games -- so they like to take advantage of its profitability despite their complaining and drama promotion in chat.

Don't be fooled - ultimately they are greedy players. They don't care what happens to you, to LGH or your investments. They only care about their own lindens. Remember, we are a community, we must work at being sustainable or risk the consequences.

I look at these vocal few who complain with every change in the game, every tweak Wili does to ensure sustainability, as slick politicians - they are attempting to manipulate the masses to fill their pockets behind-the-scenes. Don't fall for it. 

The way to success is slow and sure - but today we face a new issue. We must be united for the common good of LGH and our community. I never came to LGH to be rich. Look at the top earning players, they are not rich, but they have done very well. Look at any copy-cat games top earners, they are not rich either. We are players of a game, which should be challenging and enjoyable. Greed detracts from both aspects. There are good lindens to be made by wise decisions. Greedy players will never be happy or satisfied, as greed leads only to more greed.  There is no moral compass involved, no thought of community, it's just greed.


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dayz Short
December 16, 2015, 10:55 pm -

I stand up and applaud 


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Deivel Diesel
February 16, 2016, 12:36 pm -

with us in the ruhr area is called greed


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