I dont see that stated or implied in any of the quotes that I posted. What was said in theose posts is that the players control the gem exchange rate, not anet. And reducing that rate, or making it a flat rate, would lead to a hyper inflated economy. Also if you are refering to the part where he says the value of wealth is relative to how much wealth there is, that doesn’t mean less gold means richer people. It means that if there was say only 100,000 gold total in the economy and 200,000 players, the value of gold would be much higher then say if there was 200,000 cheap gw2 gold in the economy but only 100,000 players.
Also having static gold sinks of this nature only works for so long, but is not as effective as having dynamic sinks as well.
I’m not sure if John can, but if not, is someone else perhaps able to elaborate on the implications? Thanks in advance – and thanks John for participating here, love it!
Because most activities produce in-game currency (“gold” or whatever) from nothing, the amount of money in circulation tends to go up as the game ages. Currency sinks like repair costs are a major concern to new players, but a minor annoyance to more experienced players. Inflation of player-controlled market prices is expected, simply because it takes a lot of work to have 10 gold to spare on your toon while leveling, but when you’re at max level for six months you don’t upgrade or repair equipment as often so more experienced players have more gold to spend.
The game works much differently when 5% of the players have recently achieved max level vs. when 50% of the players are at max level and gearing alts. The market reflects this as a natural consequence of players involved in the game over time. The design of the game reflects this, for example removing repair costs makes it easier for newer players to accumulate gold while experienced players barely notice the difference.
Devs have to watch the effect of currency sinks and faucets carefully, and try to balance the amount of money in circulation with the sinks designed to remove it in order to make sure that new players can afford basic equipment as they level but experienced players can still feel as though they have goals to achieve. If either side is too rich or too poor the game suffers.
To add to this. There are many different types of currency sinks, but the most common error when attempting to control for inflation is to apply a set of large static sinks. An example of a large static sink is something like a commander’s icon. You want a bunch of these in the game, but you don’t want them to be your only tool for controlling inflation.
What I call “Dynamic Sinks” are important. These are sinks that either change naturally with the state of the economy, or a sink that designers can modify to pull more or less money out of the total supply. The trading post is an example of a dynamic sink.
Combining multiple types of sinks together allow you to more effectively control the money supply as well as don’t look terrifying to a new player when he sees that there are 900,000 gold worth of stuff he needs to buy at level 80.