This week we announced that high end users who were earning a lot in Investment Earnings (dividends) would be subject to a luxury “tax”. Now before people get irate about “taxes” let me tell you how we are going to do this and also why this should happen. In fact our calling it a “tax” in the first place was probably inaccurate on our part.
Most of our top end people have been active on the site for a long time. A lot of income they earned at the beginning came from the market mechanics in existence in the spring and as such, some are further ahead than many newer users. It is unlikely that newer users will be able to reach their level as quickly given the new rules under which the market currently operates. With The addition of our so called “tax” was intended to improve the ability for us to control and grow the economy responsibly without hurting those who are newer to the site by curtailing potentially excessive earnings by a few.
As we continue to grow we will continue to make changes to the market economy of Empire Avenue such that the economy and the site can prosper in the long term with the ability for all users to achieve similar levels of wealth and influence no matter how long they have been part of the site.
Now, we did make a mistake in that we rolled out the so called “tax” change without adequate notice as it affected only six people and that was not okay.
Here is what we are going to be doing in the future, and it is based on what we think is fair for all.
1. Going forward, if you make more than a certain amount in Investment dividends, we will withhold a percentage. You may think of it as a compulsory luxury savings program. The amount before this kicks in is currently 15,000 Eaves a day, though it will likely change to 10,000 Eaves a day once everything is implemented.
2. In the very near future we will establish a “Shop Savings” account where all these saved Eaves will be deposited. In addition, you will be able to move Eaves from your “Current” account to your “Shop Savings” account at any time, but not the other way. Your “Current” account can be used for Share purchases or anything for that matter, but the Eaves in your “Shop Savings” account will be available only for purchasing achievements, upgrades and rewards in our shop or donations to causes, Communities and more.
We think this is a fair and equitable approach. The things you earn on Empire Avenue are yours, we don’t want to take them away and that was never the intention. It is however important to realize the importance of keeping Empire Avenue equitable and fun for all through healthy economic balances!
If you have comments, suggestions, etc. the absolute best way to tell us how you feel is to contact us directly via email (info at empireavenue dot com). We read the email we receive, and it’s certainly a more effective way of sharing your thoughts than posting them online somewhere with a fairly slim chance we’ll find them!
We will let you know when these Bank related changes happen, but expect them in this next release cycle over August.