how??
Like I said, ask a Dev. It’s the only answer you’ll be satisfied with…
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probably not satisfied with the answer if they did explain it.
I think you are projecting
Increase of ISK in the game causes inflation, decrease of ISK in the game makes the game go towards deflation.
However, why the big focus on insurance?
Let’s take the January MER:
Total faucets: 177.8T ISK
Insurance source (payouts): 4.3T ISK
Insurance sink (payments): 1.5T ISK
Net effect of insurance on total faucets: (4.3-1.5)/177.8 = 1.6%
Why are you focused so much on something that contributes only to 1.6% of the total isk increase in a month? It’s almost negligible!
Yes, insurance technically increases inflation. Practically it does nothing.
im not convinced that bakster is a real person, more like a chat bot it seems.
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Insurance wont be missed if its removed so its a better step to take than increasing taxes or lowering bounties
Honestly I’ve been thinking the same thing.
The ridiculous rate of new threads, lack of a coherent story, inability to listen and reason well, and if your answers are too long it resets and starts repeating the original question again. Their posts sure do feel like written by a chat bot.
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It’s not terrible though… it’s very easy to set up and use
Bakster may be an idiot, but he got this right for once. Blowing up ships is a materials sink, and the insurance payout is an ISK faucet.
I still don’t see how, when your loss is ten times greater than the insurance payout. It may indeed be a faucet, but in the grand scheme of the EVE economy, it amounts to no more than a few drops…
So let’s say I buy a marauder from you for a billion ISK. I then insure that marauder and then do something stupid and get it blown up, earning a net 100m payout from insurance. There is now 1.1 billion ISK in the economy since the ISK I paid for the marauder still exists, it’s just held by someone else. What gets sunk when things are destroyed is the minerals/other stuff used to make it. The ISK is not removed from the economy.
It’s not a big faucet and Bakster is massively overhyping its inflationary effect but it is a faucet nonetheless.
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Minus whatever it cost you to insure it in the first place. Now if you just got it, insured it, and immediately lost it, then yes you would net 100 million from insurance. But if you had been paying insurance on that ship for months or years before you lost it, you would still end up in the negative because you would have paid far more to insure it than you would be getting back.
Is insurance an ISK faucet? Yes. Does insurance pay out more than what you paid in for it? Yes, but IF and ONLY IF you lose the ship before the amount you paid for that insurance equals or exceeds the amount that you will receive upon losing that ship.
If you receive 100 million ISK from insurance, but you paid 120 million ISK to insure it over the course of 6 months or a year, it’s still an ISK sink.
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Actually…
There was a brief period there where platinum insurance on a dread paid out more that the market price of the hull.
This was a very brief window around 2017’ish iirc.
The market quickly adjusts to such disbalances as the dread price shoots up while people self-destruct their dreads for profit.
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