Banking system proposal

I have changed the system we are using for the money managment from iConomy to mineconomy. The iConomy system has not been maintained since more than a year now and I wanted to make sure we continue with a properly maintained system.

Most of the money transactions are currently done directly through the database however, not even touching the system. Also, the new system allows for banks to be created, but all of them have the same interest rate (which we are not using at the moment). But the idea of banks gave me an idea of a system that would be fairly easy to program, and I wanted to know if there is a strong interest in that. Please also comment on how the system could work in the respective details, this is only a draft.

The Uncovery Server Banking System: “Uncstreet & the Empire Bank”

The Empire Bank: Users can have accounts at the Empire bank just as now. There is no interest, and you cannot loan money. It’s nothing more than a piggybank with access to the money-tools we have, such as the shop, the lottery etc.

Uncstreet (User-Run Banks): Users, from a certain level on, can make their own banks and define 4 basic parameters, all of which can be zero:

  • Interest on loans
  • Interest on deposits
  • Fee to open a bank account
  • minimum balance

The fee should prevent users from switching accounts too quickly. The minimum balance can work as a guarantee for the bank owner (it can be negative or positive) to make sure the account is worth maintaining, so people do not have to deal with a 1 Unc loan.

There could be also a deposit system that serves as a collateral. If someone takes money (the bank or a user), they would have to deposit (how much %?) a collateral at the Empire bank. If they do not have the cash, it would have to be generated through selling of goods on the market of course. The collateral would be paid if the user owing the money gets banned for example. required deposits would be automatically checked so people cannot take money without a required deposit being available. They also cannot withdraw the deposit as long as there are outstanding loans.

Interest would be always paid out of the lender’s personal account at the empire bank, once a (real life) day. If there is no money available to pay the interest, the account (or the bank) get’s frozen.

There would be credit reports for each user and balance sheets for the banks online so everyone can see what is happening on each bank.

What dynamics would this have?

I can imagine the following dynamics that makes this interesting:

  • There would be a certain risk involved in lending money. Is the user trustworthy? How long is he on the server?
  • Since people have a way to make more money, they can finance larger projects by paying other users to build something (like the user-run contest recently).
  • The server would have a stronger economical dynamic and a stronger “game of life” characteristic.

I would be happy to hear what you think about this

  • Is there something that I overlooked?
  • Is it to complicated?
  • Do we need the collateral deposits?
  • What else could we do (in a second step for example)
  • Would you open a bank? Would you take deposits or give out loans?
  • Would you deposit in a bank with an interest if there was a certain risk?
  • Would you take a loan if it would cost you interest?


11 thoughts on “Banking system proposal

  1. I think there is nothing that you overlooked and it does not seem to be too complicated.
    I think we need the collateral deposits.
    In a second step gold, diamonds and emeralds could be involved as a “hard/stable” currency. Those 3 items could be something like a base for Uncs (so that Uncs could go up and down in value campared to gold (for example)).
    I would open a bank that takes deposits (like uncs or gold ingots) and I would give out loans.
    Sure I would deposit in a bank (with interest) and I think I would take a loan (with cost of interest).

    • What I think is important too, is that everyone who is founding a bank is free to define rules of depositing money (or later items). Like defining how high the fee is for taking away the money from the bank deposit (or how high the fee for managing the deposit is) or how high the interest rate is.

  2. I don’t like the idea of banks. Banks to me are complicated. It would just bring players against eachother too if someone didn’t get their money.

  3. Ooohh, more realistic economy systems, sounds fun and intriguing! I suggest people who don’t understand the concept well enough, such as I, can either stay away from it putting money only in the Empire bank, or learn the economical strategical thinking, which both seems pretty harmless. Either way it’s nice to have the option.

  4. Slightly off-topic but I’d love to build a massive building for the bank.

  5. I would add the possibility of small PVP areas if users built an arena. We could pay to have this ability with uncs, or make it available to donators with your approval.

    Then we could host battles in Kingdom.

  6. Be cool if there could be a type of Stock people could buy when a Bank is made. That they could buy or sell as the stock when up or down. Depending on how the bank is doing. If a Bank crashed so would the Stock.

  7. I think this is a great idea. I personally like the whole risk factor associated with it. It makes for a much more realistic economy.

    • I agree with Pine on this. A bank system would be really cool!

  8. YES YES YES!!! Sounds awesome!! Especially with workers like I have for the school.

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