Second Life Forums Archive - Virtual gaming's elusive exchange rates

Renegade Archer

Registered User

Join date: 5 May 2005

Posts: 28

08-05-2005 10:56

http://news.com.com/Virtual+gamings+elusive+exchange+rates/2100-1043_3-5820137.html?tag=nefd.lede

Check out this article. I wonder what these same experts would think about the Second Life economy if they analyzed it.

Jesrad Seraph

Nonsense

Join date: 11 Dec 2004

Posts: 1,463

08-06-2005 23:45

Yeah ,checking the L$ exchange rate is almost as easy as checking the value of SCOX stock on Yahoo Financial

They are right about the inflationary tendency of most MMOGs, though. Whenever you have an automated mean to create the virtual money, like hunting wabbits for hours on in Slash-Those-Monsters-Generic-MMORPG™, you effectively give each player a banknote press, and the value of the money drops down to the players' lowest value for time spent playing.

LL is our central bank here. Stipends are our interest rates. Brace for tax-impact...

_____________________

Either Man can enjoy universal freedom, or Man cannot. If it is possible then everyone can act freely if they don't stop anyone else from doing same. If it is not possible, then conflict will arise anyway so punch those that try to stop you. In conclusion the only strategy that wins in all cases is that of doing what you want against all adversity, as long as you respect that right in others.

Surina Skallagrimson

Queen of Amazon Nations

Join date: 19 Jun 2003

Posts: 941

08-07-2005 02:41

From: Jesrad Seraph

LL is our central bank here. Stipends are our interest rates. Brace for tax-impact...

Similar statements have been made in other threads, but it is not technically correct.

LL aims to keep the available money in circulation at around L$4500 per account. So each time a new account is created, LL gives L$750 to the new account and adds L$3750 to the overal pot.

Due to this policy the money supply is effectively fixed. The stipend being a re-distribution of the L$ lost to sinks such as texture upload charges and first land purchases.

_____________________

--------------------------------------------------------
Surina Skallagrimson
Queen of Amazon Nation
Rizal Sports Mentor

--------------------------------------------------------
Philip Linden: "we are not in the game business."
Adam Savage: "I reject your reality and substitue my own."

Jesrad Seraph

Nonsense

Join date: 11 Dec 2004

Posts: 1,463

08-07-2005 06:18

Where did you find that L$4500 figure ? Also, I doubt the existing L$ sinks -> redistribution through stipends system is enough to cover the wealth creation that goes on in SL all the time...

_____________________

Either Man can enjoy universal freedom, or Man cannot. If it is possible then everyone can act freely if they don't stop anyone else from doing same. If it is not possible, then conflict will arise anyway so punch those that try to stop you. In conclusion the only strategy that wins in all cases is that of doing what you want against all adversity, as long as you respect that right in others.

Stephane Zugzwang

Brat

Join date: 26 Jun 2004

Posts: 192

08-07-2005 07:15

LL controls ALL sources of money creation / destruction... The fact that the L and land prices remain about stable is a testament to the fact they are closely aligning money supply to value creation.

Just like a real country, they control money supply, and measure value creation... contrary to all the other MMORPGs out there that control content (value), and have no control on money creation (which is just a part of their revenue, so by definition inflatioanry if they want to earn cash).

_____________________

Stephane Zugzwang
--
To see a world in a grain of sand and heaven in a wild flower
Hold infinity in the palms of your hand and eternity in an hour

Surina Skallagrimson

Queen of Amazon Nations

Join date: 19 Jun 2003

Posts: 941

08-08-2005 01:46

From: Jesrad Seraph

Where did you find that L$4500 figure ? Also, I doubt the existing L$ sinks -> redistribution through stipends system is enough to cover the wealth creation that goes on in SL all the time...

The L$4500 figure was quoted by the great man himself during an economic townhall back in Jan or Feb.

As LL have stated that this is how they control the money supply then clearly the existing sinks are enough.

_____________________

--------------------------------------------------------
Surina Skallagrimson
Queen of Amazon Nation
Rizal Sports Mentor

--------------------------------------------------------
Philip Linden: "we are not in the game business."
Adam Savage: "I reject your reality and substitue my own."

blaze Spinnaker

1/2 Serious

Join date: 12 Aug 2004

Posts: 5,898

08-08-2005 19:05

And here I thought I was the only one who caught that.

_____________________

Taken from The last paragraph on pg. 16 of Cory Ondrejka's paper "Changing Realities: User Creation, Communication, and Innovation in Digital Worlds :

"User-created content takes the idea of leveraging player opinions a step further by allowing them to effectively prototype new ideas and features. Developers can then measure which new concepts most improve the products and incorporate them into the game in future patches."

Virtual gaming's elusive exchange rates
Renegade Archer Registered User Join date: 5 May 2005 Posts: 28	08-05-2005 10:56 http://news.com.com/Virtual+gamings+elusive+exchange+rates/2100-1043_3-5820137.html?tag=nefd.lede Check out this article. I wonder what these same experts would think about the Second Life economy if they analyzed it.
Jesrad Seraph Nonsense Join date: 11 Dec 2004 Posts: 1,463	08-06-2005 23:45 Yeah ,checking the L$ exchange rate is almost as easy as checking the value of SCOX stock on Yahoo Financial They are right about the inflationary tendency of most MMOGs, though. Whenever you have an automated mean to create the virtual money, like hunting wabbits for hours on in Slash-Those-Monsters-Generic-MMORPG™, you effectively give each player a banknote press, and the value of the money drops down to the players' lowest value for time spent playing. LL is our central bank here. Stipends are our interest rates. Brace for tax-impact... _____________________ Either Man can enjoy universal freedom, or Man cannot. If it is possible then everyone can act freely if they don't stop anyone else from doing same. If it is not possible, then conflict will arise anyway so punch those that try to stop you. In conclusion the only strategy that wins in all cases is that of doing what you want against all adversity, as long as you respect that right in others.
Surina Skallagrimson Queen of Amazon Nations Join date: 19 Jun 2003 Posts: 941	08-07-2005 02:41 From: Jesrad Seraph LL is our central bank here. Stipends are our interest rates. Brace for tax-impact... Similar statements have been made in other threads, but it is not technically correct. LL aims to keep the available money in circulation at around L$4500 per account. So each time a new account is created, LL gives L$750 to the new account and adds L$3750 to the overal pot. Due to this policy the money supply is effectively fixed. The stipend being a re-distribution of the L$ lost to sinks such as texture upload charges and first land purchases. _____________________ -------------------------------------------------------- Surina Skallagrimson Queen of Amazon Nation Rizal Sports Mentor -------------------------------------------------------- Philip Linden: "we are not in the game business." Adam Savage: "I reject your reality and substitue my own."
Jesrad Seraph Nonsense Join date: 11 Dec 2004 Posts: 1,463	08-07-2005 06:18 Where did you find that L$4500 figure ? Also, I doubt the existing L$ sinks -> redistribution through stipends system is enough to cover the wealth creation that goes on in SL all the time... _____________________ Either Man can enjoy universal freedom, or Man cannot. If it is possible then everyone can act freely if they don't stop anyone else from doing same. If it is not possible, then conflict will arise anyway so punch those that try to stop you. In conclusion the only strategy that wins in all cases is that of doing what you want against all adversity, as long as you respect that right in others.
Stephane Zugzwang Brat Join date: 26 Jun 2004 Posts: 192	08-07-2005 07:15 LL controls ALL sources of money creation / destruction... The fact that the L and land prices remain about stable is a testament to the fact they are closely aligning money supply to value creation. Just like a real country, they control money supply, and measure value creation... contrary to all the other MMORPGs out there that control content (value), and have no control on money creation (which is just a part of their revenue, so by definition inflatioanry if they want to earn cash). _____________________ Stephane Zugzwang -- To see a world in a grain of sand and heaven in a wild flower Hold infinity in the palms of your hand and eternity in an hour
Surina Skallagrimson Queen of Amazon Nations Join date: 19 Jun 2003 Posts: 941	08-08-2005 01:46 From: Jesrad Seraph Where did you find that L$4500 figure ? Also, I doubt the existing L$ sinks -> redistribution through stipends system is enough to cover the wealth creation that goes on in SL all the time... The L$4500 figure was quoted by the great man himself during an economic townhall back in Jan or Feb. As LL have stated that this is how they control the money supply then clearly the existing sinks are enough. _____________________ -------------------------------------------------------- Surina Skallagrimson Queen of Amazon Nation Rizal Sports Mentor -------------------------------------------------------- Philip Linden: "we are not in the game business." Adam Savage: "I reject your reality and substitue my own."
blaze Spinnaker 1/2 Serious Join date: 12 Aug 2004 Posts: 5,898	08-08-2005 19:05 And here I thought I was the only one who caught that. _____________________ Taken from The last paragraph on pg. 16 of Cory Ondrejka's paper "Changing Realities: User Creation, Communication, and Innovation in Digital Worlds : "User-created content takes the idea of leveraging player opinions a step further by allowing them to effectively prototype new ideas and features. Developers can then measure which new concepts most improve the products and incorporate them into the game in future patches."

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Virtual gaming's elusive exchange rates