eUK Income Review and Donations Proposal

Day 5,942, 07:02 Published in United Kingdom United Kingdom by Mr Woldy


The time of the month has come again where Congress huddles up to think about donations. After the challenges of eNK’s massive income subsided following the cessation of their concession agreement, it was someone else’s turn to sign some concessions and give the eUK’s Country Accounts a good shake. It was eAustralia, who signed an ARM concession with Bulgaria in addition to their FRM concession with Serbia. Their income is snapshotted below.

You will see they now have two long-term concessions in place (Bulgaria and Serbia) and that has increased their income. As we own an eAustralian region this has a knock on effect to our income, a snapshot of which is shown below. This is because occupying a region provides you a slice of the country’s income, which we return as per the TW agreement.

In eUK terms this means the headroom created by North Korea ditching their concession is now being eaten into by eAustralia having two (and signing them repeatedly to make them last months). There’s definitely an action here for the MoFA team to find out if the number of times they’ve signed the concession reflects how long they expect the arrangement to last, as it will assist in our planning.

As a reminder we can donate once a day, and the limit is 400k. As such if our daily average income tips over 400k a day and stays there it may be challenging or impossible to withdraw. This is what I think of as the ‘pure maths’ because the reality is it is incredibly unlikely we will launch 30 donate laws, back to back, a month. References to liquidity, liquidable income or liquidation that follow all refer back to this limitation.

I’d suggest that a sensible amount of donations to identify our liquidation ceiling would be 24. Some quick maths : 24*400,000 = 9,600,000, which is how much GBP can reliably be donated out of the treasury in a month. A 30 day average of liquidable income is therefore 320,000. In other words, this is how much we can realistically expect to move out of the country accounts each month, i.e. how much income is liquid, or in simpler terms - accessible for spending. This should be re-evaluated regularly based on the number of donates Congress can easily achieve.

Different time zones and other factors all come into play here for example several proposals made between 01:00 and 07:00 can mean proposing a new one 24hrs later gets harder). Last month we managed 27 donates, the month prior 22. Whereas we should aim for as many as possible, we should plan for a realistic amount.

So what do we do with that 320,000 figure? The most important thing is to be monitoring the eUK’s income, which anyone can do on the economy page, to identify any upward trends in money going into the treasury.

This might look like the below - a 2 month daily average, 1 month daily average, and 10 day daily average.

The 10 day daily average coincides with a peak in eAustralia’s concession-income, and as you can see is above our liquidation ceiling. You can see in these averages the effect of eNK closing their concession and our average daily income dropping below threshold, and then rising again as eAustralia signed theirs. Part of the eAus concession-income is from the Air industry which is volatile in GDP terms because of pollution, so this is definitely something to keep an eye on to see how eAustralia’s new income levels pan out across the month.

In amongst all the donating we also need to remember we have our own costs to cover, so consideration also has to go into what comes in, what we owe others, what we need to pay ourselves, and the balance between donates, reserve spending, and debt accrual utilised to cover all these outgoings.

Proposed Donations Schedule

So with all that in mind (if you haven’t been bored to death!) What does it mean for planning donations? Congress has shown marked improvement in this area and now, typically, agrees how many donations it will make and to where each month, so that people know what to propose, money is a bit more transparent, and to help build consensus around donations.

Because of eAustralia’s recent economic changes having a knock on effect with our national income it is a tricky month to predict how much money will enter the accounts. However the term is starting with well over 2 Million in the Country Accounts, and so we don’t need to be too precise as extra donates can be made to begin to liquidate it (if we can!).

There hasn’t yet been an update on what money the eUK still owes North Korea, but assuming it has been paid off with the Bank of England donations made over the last term, I’d suggest a schedule along these lines :

If this schedule is adopted Australia should be approached to confirm which org to use. It is worth noting that eAustralia’s concession-income will fluctuate, and so I have revised down the amount to donate to them based on the expectation that over the month their average income will drop from that suggested by the 10 day average. We would be well advised to donate these towards the end of term when more data is available. As described above, if at the end of the month the eUK’s daily average income is over 320k then corrective measures may be required.

I look forward to a constructive conversation about our donations!

Thanks for reading,
Mr Woldy

If you’re interested in more income analysis check out previous articles here and here.