RE: SIM down again - but now I am president (again)!

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Here's my opinion:

I enjoy the game, and I think the overall development is going in a really good direction. I am also not planning by any means to exit it any time soon.

But that being said, there need to be more knobs and handles in terms of governance because there is an edge case that is currently a problem.

When SIM is close to its peg, of course all is well. When SIM is low, and Hive is low it's also okay because the game delivers little, but it's also cheap to step in.

But the regime we're now in is one with relatively high Hive price and relatively low SIM price. At the moment, the players do earn a few SIMs at least, but what will happen if Hive moons to $2 or more?

When we look at the SIM price in the last 6 months, it has hovered around $0.0006 most of the time. Sometimes it was $0.0004 and occasionally it bumped up beyond the $0.001 mark, but not often.

Now if Hive moons to $2, and SIM is at $0.0005, then essentially the SIM price will drop to 0.00025 Hive. In this regime the following happens:

  1. The president loses control over the tax, as the lower bound is well above 100%.
  2. Nobody is earning SIM anymore (I believe?)
  3. Cards are still not cheap, and the incentive to buy is largely gone because the cards are not earning SIM.

It is this edge case that I am really worried about actually. How do we solve it? Here are my ideas:

  1. Give the president powers to nudge down (or up) the desired SIM peg, which then rescales the Hive prices for cards too.
  2. Create more sinks for SIM, e.g. by selling more cards that give non-SIM benefits.
  3. Ditch the Hive peg, and replace it with a HBD or BUSD peg.

I don't know if any of these ideas are any good, but I do think this problem is large, that it is likely to affect us all soon, and that it does need to be solved rather urgently.

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I appreciate the thought put into this comment!

One thing that we will get in about a month is the new lobbying options. Not only will the ranking rewards be based on different metrics, solving the unfair 'luxury tax' problem I mentioned in this post, but there will also be an option to lobby to reduce the INCOME TAX!

Its also not necessarily the case that 0.00025 sim price means no SIM, it just means a ~95% INCOME tax, further reducing the presidents power to do something other than 'nothing'. Remember that you need ~112% taxes to reduce everyone to zero, as law firm, BTC mining tech and DeFi tech boosts the earnings of the players who use these cards.

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(Edited)

Ah, I thought Gerber mentioned that the 100% income tax threshold was at a value of 0.0001 Hive, and that it goes beyond that if the price goes even lower.

But I may well have recollected that wrongly!

In fact.. I'm asking gerber on Discord about this right now, just to clear up my own confusion ;).

Edit: And Gerber answered... the 100% point is indeed at 0. So my original post is a bit wrong I guess! I'm sorry for wasting everyone's time with that.

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But the regime we're now in is one with relatively high Hive price and relatively low SIM price. At the moment, the players do earn a few SIMs at least, but what will happen if Hive moons to $2 or more?

If the relatively high Hive Monns even higher, you have been plain out cheated.
If you pick one (too high/too low), we can have a meaningful discussion.

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