dkp gain & loss

This area explains the factors that relate to DKP earning, spending and tax.

dynamic DKP earning

DKP is earned based on the total value of loot distributed, divided by the total number of attendees, on a per event or target basis.

Formula: [ bounty_total / raid_attendance ]

Note:  bounty_total is dynamic, that means constantly changing.  Covered in section below under 'Dynamic DKP Spending'  with fixed minimum opening bid value per item.

All totals rounded to the nearest whole number.

Example 1:

Bounty Total: 500 DKP
Max minimum Bounty Total: 40 DKP (that's 10 DKP per item, 4 items)
Raid Attendance: 35
Win DKP Earned: 14
Fail DKP Earned: 1

Win calculation:

= (500/35)
= 14.28

Fail calculation:

= (40/35)
=  1.14

dynamic dkp spending 

Items being auctioned for DKP, go through an open bid process.  Once done, the highest bid value is attached to that particular item.  This item value is deducted from the winners Current DKP holdings (with appropriate taxes applied).

Auction details are covered in section DKP Loot Ruleset.

dkp tax

See Important note below please.

In order to encourage DKP spending, and help stem off hoarding, all items are subject to a tax.  For every 1 DKP held, ensues a tax of 0.25%.   This tax is applied only on spent items.  So for example, someone with 150 DKP holdings, would pay 37.5% more for an item.

All totals are rounded to the nearest whole number.

Formula:  [ dkp_holdings ( tax_rate ) ] ( item_cost )

Example:

Player_A: 150 DKP holdings
Item Cost: 20 DKP
Player_A Cost: 28 DKP

Calculations:

= (150 (0.0025))(20)
= 0.375 (20)
= 7.5

* Important: Tax is not in effect at this time.  We're still in the early stages of this DKP system, and having tax in place as we're seeding the system is counter productive.  We may need to tweak with the tax rate also, but for now numbers are needed in the system to see how everything works out.

* Be aware:  Tax is calculated only after items are purchased.  This means, don't factor in tax to find out what you have available to bid with.  Simply use your Current DKP holdings as a ceiling during bidding.  It's entirely possible and normal, after tax is calculated from a purchase, to go into negative DKP territory.