Staking cap:
- How and why the ‘bad guys’ got a win here: points 1-7
- Why this was a loss for the legitimate players: 8-13
- Why advocates of the restriction (who aren’t tied to the black-market) largely have nothing to do with this and won’t be effected either way: 14-18
- Closing notes/recommendations: 19-25
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How and why the 'bad guys' got a win here:
1. A black-market for staking was born when Jagex implemented the staking tax and ‘cash only’ restriction. The black market would rationally charge a smaller commission on the staked amounts than the staking tax to incentivise stakers to use their service.
2. This cap will now tempt everyone who wants to stake over 10m to the cesspool which would be that black market, with its own rules, corruption, racketeering, and solicitation - far worse than the predations of the original duel arena.
3 & 4. The commission money that gets pumped into this industry will now increase massively and, worse still, the portion of big stakes which would have otherwise been done and taxed legitimately will now go through intermediaries - so instead of the staking tax being a gold sink here (good for the economy), this excess wealth will stay in game (not good for the economy long-term), going to the intermediaries who will sell it and make far more $ than ever before.
5. Since this industry is now going to boom, those who own/control/run the organisations that facilitate black-market staking can now charge people who wish to be the intermediaries far more for the right to work on their platform (whether it be a clan chat, website, Facebook/WhatsApp group, discord, homing-pigeon service, etc.) and, with so much more at stake, these kingpins will have even more incentive to act in ruthless ways to protect/grow their market share or to cash in on the expanded industry with corrupt actions.
19-Nov-2021 07:51:12