Why does the $L value keeps going down??

One option IF stipends are part of the problem is for LL to buy $L to pay stipends with. Then, the price on premium memberships would go up, cause LL spends that money currently on equipment, staff, etc. Oh wait, it would be easier for LL to eliminate the stipend and for individuals to buy as much $L as they needed. Oh wait, but LL promised premium members the stipend... Oh hell.

Of course, developer incentive, etc. have gone away too. No guarantees.

I favor eliminating the basic $L 50 stipend, since it serves no useful purpose anymore. But premium members have a point. It's part of their membership package.

I'd like to see LL go to an $L subscription, where you put in an automatic buy order and you get $L once a month based on the $L value at the time ... staggered to minimize dips & spikes... and unrelated to membership.

Meanwhile

The $L is trading well against the Vietnamese Dong.

$L 1 = $VND 5,682.14

These threads.

Actually what I would -love- to see is LL buy a amount per month off the lindex for each premium.

I would suggest 7 US $ mainly because its a median between annual and monthly charges.

This chunk is then broken into each members respective 4 weekly payments.

There would of course need to be some counters to the upload sinks in place..to keep the market stable.

But thats just a suggestion.

Another is cutting the cost of premium if we lose the stipend.

Oh, and Wuv... what happens in RL when the value of currency goes down, is the sale price goes up to offset it. I've been looking around and I see that happening.

Typical October 05 LLX opening figures were actually closer to $3.90 per/1000. October however is probably not a good month to use as a representative figure of L$ value, since it coincided with the first few weeks of GOM-closing-aftermath, and the first few weeks of LLX inception. October also saw the announcement of impending removal of stipend bonuses at the end of that month. There was a lot of uncertainty in October, with the range of daily opening figures jumping wildly from $3.45 to $3.98 p/1000 L$.



That's actually not too far from late September 05 figures. The GOM daily averages 09/15-09/30 ranged from $3.31 to $3.53; $3.39 or below (i.e. under 295 L$ to the dollar) 9 days out of 17. If I recall correctly, the bar room theories of the time speculated the reason being an IGE dump of about 10,000,000 L$ in one shot, with this shortly followed by panic selling with news of GOM about to close its doors. Early September GOM averages ranged $3.45 to $3.59, usually hovering at about $3.50. So like October, September is also probably not a good example of previous L$ value for comparison.

Simply stated, Autumn as a whole had too many aberrant swings from unusually dramatic reasons, occurring back-to-back or simultaneously, to regard any figure of the time as a benchmark for comparison with current L$ prices.

I take last summer to be a good representation of prior, relatively recent L$ value: GOM daily averages were typically in the mid $3.80s per/1000 from mid July to EOM (about 260 L$ to the dollar) and mid $3.70s per/1000 (about 275 L$ to the dollar) through August, with few spikes. More recently, we can look at December/January where opening prices were typically stable in the mid $3.70s per/1000 with a fairly steady gradual decline since.

Certainly, either last summer or the beginning of this year supports an argument that there's been recent decline in value of the L$, but it's not as dramatic as the statment "Back in Oct'05 the L$ was US$4.00=L$1000" would suggest. Citing that figure to argue a decline is as misleading -- unintentional I'm sure -- as would be the counter argument "Back in September 05, the L$ was US $3.31=L$1000." Both are true figures more or less, but neither are representative of the timeframe.

I haven't seen sale prices rise where I shop.

I think part of it comes from people who get so frustrated with changes that they quit.

Insert "lag" where I said "changes", and you might even get a larger percentage.

All of that land gets sold for money, and all of that money gets sold for USD. When you want out of something fast, you short-sell all you have for around 195/1. Thus, the drop.

why would do that.. the bases of a premuim account isnt the 500L stipen. your 10$ a month has no effect on the linden currency what so ever. you do not pay for your 500L it wasnt given as manditory thing just cause you pay 10$ a month.. the whole consept behind the premuim account is to hold land..

if yur on a free account you dont get the right the own land on there servers (unless rented or bought by someone else who paying for it*) being for that you dont pay anything towards the cost of running upgrading and maintaining the servers.

if you want land your gonna have to kick in with the cost of helping the servers run and stuff.. so now you get a premuim account and pay 10$ for really only a small chunk of tier aint much you can do with a 512.. and the more space you want to own on there servers the more you will pay..

the 500L stipen your recieve is more of a thank you for contibuting money to the cause it is also an insentive cause not everyone needs land so if buying or wanting to own land dont appeal to you how about this instead of the messly 50L you get we will give you 500L.it was not given as well one group of account holders have more right to free linden then the other. no was given as your intitled to have linden more so then basic account users. f that was the case you would have every people who pays 80$+ in land fees screaming they are intitled to more stipen then those who only pay 10$ a months cause we pay more!

i also read in one of these forums someone said if they take stipen away form premuim holders it would hurt LL.. which in all actually would hurt them alot less then you think.. being that there still alot of paying memebers who use the premuim accounts to own land.. and i doubt most are gonna give up there land give up there stores give up there homes just becuase they dont get 500L now..

Yes, it is.

if that was the case then you premium users are getting ripped off since isnt 500L x 4 weeks is 2000L which is only around 8$.. so if the 500L is the bases around the premuim account that doesnt make much sence why pay 10$ for my account and only get 8$ a month worth of linden, when someone can just stay with a free account and just spend
10$ on lindenx and get more linden for there buck

Because its a guaranteed no entry transaction..convenience. Also note the discounted prices of the other premium plans. Yearly amounts to 6/month, quarterly to 7.50/mo.

The land isn't that big of a deal to me..more of a bonus.

which i said yes to some people the land owning isnt a big deal to them and yes probably do upgrade just to get 500L a week but that wasnt the main consept of the premium account the 500L was an add insentive given in hopes people would upgrade for yes just the sole purpose of getitng 500L a week..

im saying had the sole purpose to being a premuim member just for 500L been the idea behind it then al account basic and premuim would have the same rights to land owing and the only diffrence would be the amount of linden you get

The stipend was the main reason I paid for premium. I don't want to work two jobs, so the 500 stipend to me symbolizes time spent in the prim mines, or stocking dwellget..whatever my avatar decides to do for a job while I am offline.

The land being premium only is a added bonus, an incentive.

the L$ has been "stable" for almost two years now, during which time it went from trading at less than 200L$/USD up to the current 280L$/USD.

please define stable!

Where horses sleep.

Another voice of reason in the sea of "everything is ok, the L$ is stable".

Welcome, Capitalistic Hero.

I think it is stable specifically in the past month or so. I would define something as stable if I can trust that it will be near the same point in the next month. Right now the 280 isn't great for sellers, but it has been worse. I have a feeling it will drop back into the 270s again this week based on the largest road block over 1,000,000 is at 278. Anyone notice the 10,000,000 block at 261L is now only 2,000,000 or so?

Yah I did, mentioned it on another thread

Ok, well I do keep hearing about "Because LL added more L$ it's worth less." OK! If this is true. I am guessing that this is happening because the money is QUICKLY being drained from there hands. And apparently. Not being sold...... (Dont need to go on for this. DOnt want to sound like i am accuseing anyone since you should all be able to figure it out from here)

~Tone Out~

I've been monitoring the prices of our competition since we started almost two years ago. I've watched them rise and fall. Currently they're rising. Not by much, but then the $L isn't moving by much either.

There is no reason for most to adjust pricing. Since the widgets
they are selling cost them nothing to produce in the first
place.

Now if we had Prims as Commodities and there was a baseline
of intrinsic L$ value to a widget, then changes in the US$/L$
would motivate widget sellers to adjust pricing...

But right now, lack of pocketbook motivation will keep prices
stable in-game...Although allowing Inflation to run unchecked
and blinding people to the growing problem of oversupply of
the money supply.

We've had a prim tax before. Didnt work. Stifled creativity. Stifled new product. Cut interest in new designs.

There isn't inflation. there is only a changing foreign exchange value..completely different. Gos ell your Linden $ in viatnamese dongs (if I have the name right), reserve..its about 1L$ to over 3k VTD if I remember right.

You're still wrong.

I pretty much think that the drop, like at Christmas and other times, is based in part on RL holiday seasons and such. In this case, people selling off their excess Lindens during Spring Break, which started this week for many.

Excuses to ignore the obvious. Linden Labs has a lack
luster economic policy. Which has caused a continued
decline in the Linden Dollar Valuation.

Assign blame to the obvious, not a crazy seasonal
theory of possible selling reasons.