Stop Inflation

[slavahosting]

Something needs to be done to stop the inflation of F$, I havent been with DNF that long, but I have spoken to member swho have they all say a year ago you could sell DNF for USD at a 0.01 rate.

Today, its almost impossible to sell at 0.0055, practically nobody will buy DNF above 0.005 rate.

Whats going to happen next year? 0.0025 rate, or worse?

More people are signing up, and more people are posting therefor more DNF are in circulation around the forum, some of this DNF needs to be taken out of circulation to slow or stop the local economy from completely crashing.

I propose a sales tax on all transactions including donations between members, yes nobody is gonna like having their hard earned DNF lost to taxes but its for their own good on the long run.

The value of a single F$ will go up, and therefor even though they will hold less DNF, the value might be more then before.

This is the only thing you can do to stop the inflation, over time you might wipe out the black market of sales in teh F$ forum, how much money is being made at your bank from people buying DNF. I bet not as much as it was before when there wasent a black market.

A tax is beneficial to both the forum and the members, it will provide a stable economy that can make the forum an even more prosperouse community.

 

[slavahosting]

True, and DCG is online... Theres still hope.

 

[slavahosting]

The beta testing is over and it should be launched before the week is out.

Still waiting

 

[diverge]

I read every post in this thread, and no one has addressed what I consider to be the REAL reason for the inflation: at least twice in the past year (I may have missed a third), DNForum has lowered the exchange rate at the bank from 0.01 to 0.005 on special buy-in promotions. Those of us who caught these promotions bought tons of DNF for use and for sale. While these "sales" may have made sense to the admins to raise emergency cash, they are the true cause of the inflation, since it flooded the market with F$, which was bought (and therefore could be sold for just slightly higher than) $0.005 each.

What I'm trying to say is, if the local bank started selling US Dollars for $0.50, even if for just a few days, your local neighborhood billionaires would buy like crazy. You had better believe the value of the dollar would take a long time to return to $1 -- if ever.

This type of behavior, while beneficial to those of us who caught these sales (I upgraded to Platinum at half price on one of these deals), is destructive to the F$ economy over time. If the admins desire to create value for their currency, this type of sale should be avoided in the future. Instead, I would advise periodic sales on the STORE items, not the F$ themselves.

Anyway, that's just my 2 cents worth. Oh, and look, I did get F$4 for this post (F$4 ~= US$0.02). Coincidence? Maybe that's why the induced the inflation... Hmm....

 

[damitssam]

The essential monetary dilema isnt simply one of removal of excess currency but rather the usually more complicated issue of employing the currency in useful ways. In this case there is one simple easy and elegant solution. The very best way that I could see to accomplish what you and I imagine everyone would like would be for DNF to ACCEPT f$ FOR DOMAIN REGISTRATIONS!!!! Whatever value DCG decided to peg for acceptance would become the defacto exchange rate. If he took 685dnf$ for 1 years registration/renewal then you would see right away that dnf$ would again be worth .001 -.009x or roughly thereabouts.

I dont see why DNF decides against that. Look at the NP economy. At a huge 0.015-7 rate per np, the benefits of having Domain registrations using NP of deflating a economy is seen. I dont see why this cannot be implimented.

 

[slavahosting]

I asked the same question to DCG and his reply was that there is approximately $25,000 worth of F$ in circulation at the moment, and if the service was offered, then it would dig in way too deep in DCG's pocket, although economy is crashing steps need to be taken to fix it but one person should not take the hit so others can benefit.

I think that if a limit is placed on amount of domains each member can register, then the problem would be solved.

 

[diverge]

...there is approximately $25,000 worth of F$ in circulation at the moment, and if the service was offered, then it would dig in way too deep in DCG's pocket...

Of this amount, most (I am sure) was paid for with $$$, or was received during Exclusive upgrades, which also cost $$$. Some, I'm sure, even back when DNForum DID offer domains regs for [then] DNF$. While some may argue it's DCG's priority to remove / refuse to reinstate the F$ domain registration service, and spend this cash however he wants, it is also not unreasonable to expect that those of us who bought F$ with the intention of using it to purchase REAL (not imaginary) services should find some satisfaction.

Now that DCG owns a domain registry, perhaps he could provide a service to reg, traffic test, and subsequently drop underperforming domains. I've read of registrars doing this, so why not open this service up to DNF members. It won't cost him anything (since his registrar won't be charged for domains dropped within a certain timeframe), but I'd be willing to pay F$ to have this capability, and would pay US$ for the ones I choose to keep.