Hi everyone, I think that it’d be a great idea to introduce debt contracts, allowing one player/corporation/alliance to issue a loan to another player/corporation and structure it however they want.
- Maximum amounts
The maximum amount that a player can borrow should be limited by the amount of skillpoints that they have in order to prevent over-indebtedness. Once someone borrows ISK, they can’t extract skillpoints anymore until their debts are repaid.
I think that the maximum amount that a corporation can borrow should be determined by the amount of structures that they own. I think a good maximum amount would be 25% of the value of their structures in high sec and 10% in low sec.
What happens when a player defaults?
The lender should have the option to sell the debt to a 3rd party, either to other players/corporations/alliances or to faction police or concord. The latter should have the ability to set the player’s wallet in the negative and pay the lender 50% (or some other percentage) of the capital owed.
Should a corporation fail to pay their debt, the lender should have the option to sell the debt to a 3rd party or to faction police or concord. The latter would transfer ownership of the structures in high sec that were put up for collateral for a fee. Should a corporation fall under the 25% (or other percentage) debt/equity ratio then they’d be in default automatically.
It should be possible to sell ongoing debt contracts to other players/corporations/alliances.
So why do I think it’d be a great idea? Isn’t EVE perfect as it is?
To be honest I don’t know if it would have a positive or negative impact on the average player. I think it could go either way. If players use debt in a conservative way, then it could have a positive impact by allowing more economic opportunities and faster wealth building. If players are careless and over-leverage, then it could lead to a short term inflation as more and more liquidity goes into the economy, increasing the prices of everything and ultimately forcing players to go into debt to aquire anything, then as players try to pay debts back it would be followed by deflation, reduced or negative profit margins, debt slavery, economic meltdown and the destruction of eve online.