This is the truth, it is very simple to return it if it is found.
Having it marked into location "Unknown" doesn't have a negative impact on anyone but it does reflect the actual state of affairs. It isn't complicated at all, it is very straightforward.
Cache owners and TB owners should mark that items are in locatoin "unknown" as soon as they can confirm the item is not in the cache, even if it is sitting in a cachers pocket or in the back seat of a van on holidays.
I do plan maintenace visits around reports of missing bugs because a lot of cachers do choose caches that contain trackables, trackable items are one of the two basic gamepieces in geocaching and they are the focus of the adventure for many, as they should be.
So even though you would never visit a cache for a trackable item the fact that many people do should be clear to everyone, look at this thread and many other threads that deal with the same issue.
Wavector, I agree that if it is so simple to return a TravelBug or GeoCoin from the 'unknown' status, why don't the Cache Owners just move them to 'Unknown' area after they hear from two or three cachers that the TB/GC are no longer in the cache!! Some of us do use the indication that a travel bug is in a cache to go visit the cache to see it and move it along.
Please if you are a Cache Owner, please more it to 'Unknonw' to make sure that your cache's home page it accurate.
Please if you are a TB/QG Owner, please move it to 'Unknown', so when the cacher does go to log it, they can use the key code and say they found it, and can get ready to place it in the next cache.
I like Wavector's idea of 'greying' out a TB/GC by a cacher response, maybe 'Item not in cache', like a 'needs maintenance' is appropriate. It would not move the TB/QG from the Cache, but at least it would not show up in the Pocket Query. We need accuracy on the home pages so people can trust what they read and what is used in the automation process. This could also cut down on the amount of data that is being processed, and may speed up the website processing
The most important thing is to be accurate in all we do, so the new cachers do not get discouraged and can believe what they read on the cache home pages.
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