minecraft server economy (2)

i'm not the most up to date on the political and economic situation of the Minecraft server i play on. i mean, i just live in my hole with my diamonds and have no idea what everyone else is up to.

i found out today that there is already one independent state, and another coming up. also, i've been informed that i'm the reason the server's economy is in shambles: since i hand out mine products for free, most people don't really bother to go mining so no one has many diamonds (i have all the diamonds). that's why much of the trade involves bartering.