"Currency" Inflation in the Gulch
Posted by freedomforall 10 years, 1 month ago to The Gulch: General
"Currency" Inflation in the Gulch
Consider for a moment the point system in this online Gulch.
What is it's purpose?
Does it's purpose support the ideals of objectivism, the free market, and value for value trade?
Be assured that my purpose of posting this is to encourage discussion so by all means feel free to disagree and to add your ideas, too. Everything here is open to discussion.
The existing point system appears to me to be a Gulch function similar to "likes" on another social networking site. That serves a social purpose as far as it goes, but it's not what I think of as particularly objectivist.
In my opinon, the Gulch point system should have a goal of encouraging discussion and encouraging rational thinking by digitally rewarding the members who make rational posts and comments, and other members of the Gulch should be able to do this of their own free will.
I think the existing point system does accomplish this to a certain degree.
BUT ...
I have been thinking for some time that the "point" system in this online Gulch has something in common with the current unstable western economic system: inflation.
The issuance of currency (points) has no cost, the supply is unlimited, and therefore the supply is growing. There is no value paid-in when we award points to others so the value of each of those points is diminishing. As the Gulch grows in population this effect will be even more pronounced.
I think the free market has shown one way to make this better.
(For purposes of discussion, I call the new points GaltsGold points.)
I think that every GaltsGold point that I award to another member should reduce the number of GaltsGold points that I have earned that appear in my Gulch account. I should give value for value. If a post is really valuable, I should be willing to acknowledge that via a digital payment of a point I have earned.
I think the Gulch experience could be improved with a more objectivist, value for value GaltsGold point system.
Here are some ideas for discussion:
- In a real Gulch those arriving would be able to bring some property they earned through production, and will have to earn any more to trade and survive.
- In any trading system there must be enough currency to enable and encourage free trade. Limiting the amount of currency stifles trade by giving the impression of scarcity.
- In the digital gulch I think new arrivals must be assumed as productive members unless they act otherwise.
- Therefore, in order to encourage valuable posts and encourage free trade, I think the Gulch should make a one time loan of GaltsGold points to every member. The loan can be revoked at any time by the Gulch, of course.
Suggestions on how GaltsGold points could be earned:
1) GaltsGold Points paid by other members to a topic or to a comment. (This is paid from the paying member's bank of GaltsGold points and reduces that balance.)
2) 1 point (from the Gulch's Mulligan Bank) paid to a member for a topic posted that earns at least 3 points paid by other members
3) Members are loaned 20 points for joining the Gulch
4) 1 point (from the Gulch's Mulligan Bank) paid to a member that has earned 5 GaltsGold points from other members in a month
5) Producers are awarded 1 point for each month they are paid producers
6) Any other value for value award that the owners of the Gulch site should choose.
Please consider that the above system might be gamed via collusion of members.
The current point system also allows down-votes. I don't think that will work fairly in a value for value point system. Points that have been earned (and paid for by another member) could be considered the property of the member. Taking away someone's earned property might be considered stealing.
Allowing uncontrolled down-voting could also make it possible for a terrorist troll to attack and destroy property in the Gulch. I think it is the duty of the very limited government in the Gulch (the site owners and designers) to protect property of the members. Recovering points correctly in such a case would be a complex problem programmatically.
The Gulch owners and marketplace vendors may consider offering discounted products as a reward to members who have earned specified GaltsGold point levels in the Gulch.
All of the above is just a suggestion.
I look forward to your rational comments, suggestions, improvements, and criticism.
Consider for a moment the point system in this online Gulch.
What is it's purpose?
Does it's purpose support the ideals of objectivism, the free market, and value for value trade?
Be assured that my purpose of posting this is to encourage discussion so by all means feel free to disagree and to add your ideas, too. Everything here is open to discussion.
The existing point system appears to me to be a Gulch function similar to "likes" on another social networking site. That serves a social purpose as far as it goes, but it's not what I think of as particularly objectivist.
In my opinon, the Gulch point system should have a goal of encouraging discussion and encouraging rational thinking by digitally rewarding the members who make rational posts and comments, and other members of the Gulch should be able to do this of their own free will.
I think the existing point system does accomplish this to a certain degree.
BUT ...
I have been thinking for some time that the "point" system in this online Gulch has something in common with the current unstable western economic system: inflation.
The issuance of currency (points) has no cost, the supply is unlimited, and therefore the supply is growing. There is no value paid-in when we award points to others so the value of each of those points is diminishing. As the Gulch grows in population this effect will be even more pronounced.
I think the free market has shown one way to make this better.
(For purposes of discussion, I call the new points GaltsGold points.)
I think that every GaltsGold point that I award to another member should reduce the number of GaltsGold points that I have earned that appear in my Gulch account. I should give value for value. If a post is really valuable, I should be willing to acknowledge that via a digital payment of a point I have earned.
I think the Gulch experience could be improved with a more objectivist, value for value GaltsGold point system.
Here are some ideas for discussion:
- In a real Gulch those arriving would be able to bring some property they earned through production, and will have to earn any more to trade and survive.
- In any trading system there must be enough currency to enable and encourage free trade. Limiting the amount of currency stifles trade by giving the impression of scarcity.
- In the digital gulch I think new arrivals must be assumed as productive members unless they act otherwise.
- Therefore, in order to encourage valuable posts and encourage free trade, I think the Gulch should make a one time loan of GaltsGold points to every member. The loan can be revoked at any time by the Gulch, of course.
Suggestions on how GaltsGold points could be earned:
1) GaltsGold Points paid by other members to a topic or to a comment. (This is paid from the paying member's bank of GaltsGold points and reduces that balance.)
2) 1 point (from the Gulch's Mulligan Bank) paid to a member for a topic posted that earns at least 3 points paid by other members
3) Members are loaned 20 points for joining the Gulch
4) 1 point (from the Gulch's Mulligan Bank) paid to a member that has earned 5 GaltsGold points from other members in a month
5) Producers are awarded 1 point for each month they are paid producers
6) Any other value for value award that the owners of the Gulch site should choose.
Please consider that the above system might be gamed via collusion of members.
The current point system also allows down-votes. I don't think that will work fairly in a value for value point system. Points that have been earned (and paid for by another member) could be considered the property of the member. Taking away someone's earned property might be considered stealing.
Allowing uncontrolled down-voting could also make it possible for a terrorist troll to attack and destroy property in the Gulch. I think it is the duty of the very limited government in the Gulch (the site owners and designers) to protect property of the members. Recovering points correctly in such a case would be a complex problem programmatically.
The Gulch owners and marketplace vendors may consider offering discounted products as a reward to members who have earned specified GaltsGold point levels in the Gulch.
All of the above is just a suggestion.
I look forward to your rational comments, suggestions, improvements, and criticism.
