An economic foundation for the vision of Neualtenburg

I've indicated that I have prepared a set of proposals, suggestions, and Guild project plans to start off my tenure as Guild Master. I think they're finally now in a somewhat reasonable shape. And with the election over, and a new group of RA members ready to assume responsibility, I offer them to the new RA and here to the community for your discussion and comment.

The whole thing is fairly lengthy (sooory!), so I've split it into three posts. They are:

1) Rationale
2) Proposals/Suggestions to the RA
3) Specific Projects of the Guild

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First... the rationale....
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The Vision…
(from the website)

The Neualtenburg Projekt is a nonprofit cooperative and self-governed community, whose purpose is to:

enable group ownership of high-quality public, private, and open-space land;
create a themed yet expressive community of public and private builds; and
implement novel democratic forms of self government within Second Life.

As a city in Second Life, we have assembled a community of artistic, ambitious, talented individuals who explore the limits of architecture, culture, and politics in Second Life. society is focused around the following elements:

Architecture
The city is modeled after a medieval Bavarian city with postmodern architectural elements in the private sim of Neualtenburg. Most of SL is based upon the precepts of modern architecture, where land and buildings are dominated by the rectangle. One of the goals of this project is to create a city which replaces orthogonality with organic and brings together the medieval and modern.
Culture
The city is a nexus for progressive social experimentation in Second Life including modern art (sculpture, scripting, movie making, role playing), political organizations (a representative assembly, constitution, and bill of rights), and education (classes and meetings are held for all SL residents).
Politics
The city is based on a democratic republic with city planning and group sales to support landmarks, art, and expansion. This sim is very different from other themed builds and groups in SL, as it is owned collectively and governed democratically.




Comment
The vision described on the website is an extraordinary proposal for exploration on the frontiers of human culture. It has moved many of us to devote countless hours and in some cases personal risk to seeing this project happen. The first phase of operation on a sim of our own ownership has resulted in a group of citizens capable of supporting the basic expense of sim rental. The budget is balanced at this time.

The problem is that most of the residents have not discovered for themselves a clear reason for participation. Attracted by the statement of vision, many (if not most) purchase land intrigued by what the vision offers, interested to see what it has in fact resulted in. And, in fact, the vision proves to be very much the statement of a potential, rather than a reality “on-the-virtual-ground”. This is simply to say that the project is very much a work-in-progress; that much of the vision remains un-actualized, and that participation as a citizen does not mean participation in a social/political/cultural environment as described, but rather one which requires the new resident to add their own efforts in order to see it perhaps some day realized.

Most residents do not find the personal “bandwidth” to relate to the project directly in this way. There have been 32 residents of Neualtenburg, fully 19% have left in the 8 months since June 1, 2005. Of those 32, only 15 have ever indicated membership in a faction; there are only 14 faction members at this time. And, indeed, most faction members have had limited time to contribute to the project. Whether for reasons of limited time and energy, or for the feeling that the course and direction of the project are set by others little inclined to share their roles, most residents have functioned on the periphery of the community envisioned in the website statement.

(1) Why is this, (2) does it matter, and (3) how can it be remedied?

(1) I suggest that in fact the vision itself, while compelling and surely qualifying as a blueprint for an exciting society of the future, is insufficient immediate motivation for most potential residents to a long term commitment. Emphasis on “most”, because while surely some members of the SL universe will experience the Neualtenburg vision and be moved to spend the countless hours it will take to assemble, most will experience the vision through a filter to determine what their personal pleasure and/or benefit will be. They have and will purchase land with that question in their minds. And as time passes and their monthly fee comes due each month, they will re-evaluate whether this experience is worth their money, much less their time.

(2) It matters because the viability of the project depends in very large extent on the stability and involvement of the population. On an immediate level, the US$195 must be generated each month to pay the Lindens, and, in fact much else of the progress towards the vision will be crippled by insufficient funds. So a sufficient number of residents must be willing to contribute the needed funds. And further, much of the vision involves the development of community institutions, entities which are only formed by the active participate of the members. Clearly, the vision fails with insufficient numbers of actively participating members.

3) I believe that the problem can be remedied by attention to the motivations which participants possess in other self-organized “governance-by-consent-of-the-governed” social projects; the RL models which inspired this vision. I believe that underlying such projects (the formation of the Athenian democracy, the formation of the US democracy, the evolution of the British system of common law) was individual, economic, self-interest. We in Neualtenburg must re-focus on individual, economic, self-interest as the key bonding element moving this project. We must recognize and attend to a component of human nature which we have overlooked in our enthusiasm for the vision.


Here is a direct example. Kendra Bancroft owns that section of the City called Altenburg, under a standard Neualtenburg deed. She pays the regular monthly fee for the property. On that property she has built shops and at least one civic facility. That property attracts far and away the highest traffic sustained by the sim, and she has claimed that her commercial activities are successful. She is a self-motivated individual merchant pursuing self interest.

Contrast Altenburg with the Marketplatz. The Marketplatz has a far higher traffic potential than Altenburg, since it is the location of the telehub. However, almost the entire property of the Platz is city-owned. Except for visitors who arrive on their way to Altenburg, or Aliasi’s primtionaries, there is no activity there whatsoever. And, since the land around the Platz is city-owned, there is no monthly fee income from it.


Claude Desmoulins posted /103/09/81576/1.html#post839160
this useful question…

"What specific, measurable targets of commercial activity or something else need to be met before expansion is appropriate?"

…. I'm … trying to understand where you hope they will lead, not so much in a conceptual sense, but instead in terms of hard numerical targets, particularly to the extent these constitute a prerequisite for addition of one or more sims.

If I understand your most recent post correctly, you see 'sound commercial footing' as NBurg being a more commerce friendly place that attracts citizens because of its commercial potential. If this is so, how will we know we've arrived at that state?

Right now (January 2006), other than Kendra’s Altenburg and Ulrika’s shop on the Platz, there are only two other shops in the City (of which I’m aware). Amulius Lioncourt sells his swords and staffs in a shop just off the Platz, and Gwyn Llewelyn sells her assorted sundries from a shop tucked away on Gwynethstrasse. I have not discussed their traffic or profitability with either of them, but I will hazard a guess that they receive little business from those shops. Since Ulrika and Kendra are founding members of Neualtenburg, it will be expected that they possess the authority and ability to act in their own behalf in creating and operating these establishments. Other, newer members of the community are not so “empowered”.

My proposals are aimed at providing new residents with ready access to the resources to create thriving businesses in the City. We need to welcome new commerce to the City with every tool at our disposal. I would suggest that instead of a single thriving business operated by a founder of the City, there be 6 or 8 thriving businesses (as a minimum) as a benchmark of a well-established economic base. Such a base sets a firm underpinning for the underlying ‘worth” of the City itself, its real estate, its finances and its reputation. On such a firm underpinning, expansion becomes a natural evolution.

I offer my services to those members of the RA who find their opinions compatible with these positions for the purpose of preparing the proposals needed to implement them.




The goal of these proposals….

To create demand for membership in the City. To ensure that property values are maintained, ensuring occupancy, which ensures a tax revenue flow. These ensure the long term existence of the entity itself, thus providing the environment for the vision described on the website.

The Proposals / Suggestions to the RA for Action……

1) Use the existing resources of the city to establish the value of participation. Pay people for their services.
It is not a new tenet of Neualtenburg organization that those who contribute to the sustenance and development of the city should be paid. We must aggressively implement this concept. A value must be placed on the existing infrastructure; the individuals responsible for its creation must be identified, payment must be made from the city treasury, and the recipients must certify that they have received full compensation. On-going services must be identified (administrative duties, website maintenance and expense, election administration, etc…), valued, and paid for. Naturally, the many upcoming items of infrastructure (buildings, streets, commercial supplies), software (personal resident accounts, bond administration) and services (marketing and public relations, event organizing, government administration) must be priced and paid for.

The purpose of this move is to establish the concept that while all labor might contribute to the furtherance of the vision, it also contributes to the furtherance of the individual’s pocketbook. Of course, we must be on guard against those who would end up stifling furtherance of the vision by excessive attention to their pocketbook. But at this point we are a long way from that problem.


2) Amend the constitution regarding goods produced by artisans…

The existing constitution reads:
“Article 2, Section 5 - Limitations of the AC (Artisanal Collective)
All goods produced by members of the AC remain property of the citizens and must remain with them if a member departs. …. “

Amend to
“All goods and services produced by members of the AC under contract to the City Of Neualtenburg for those specific goods and services remain property of the citizens and must remain with them if a member departs. …. “


Neualtenburg must be configured with a structure conducive to creativity and personal initiative. This means that the fruits of one’s creative activity are “by nature” owned by the creator, and the system must embody this. Only those goods and services performed under the arrangement of “work-for-hire” are owned by the recipient City.



3) Perform modifications on the layout, arrangement and environment that will improve the experience for clients who visit the resident merchants of the City, while at the same time maintaining those features and qualities of the environment which are important to the original vision.

Here’s recent post by Aaron Lightworker regarding this topic. While I may not agree with every suggestion, the basic purpose of making the suggestions is critical to evolving a visitor friendly environment.



I suggest that we aggressively open this discussion to comments and resolve upon modifications.


4) Clarify the financial issues facing the merchant.

(a) Does the merchant indeed own their parcel…, including parcels on the platz?
It is a tenet of RL and SL that a person’s relationship to the real estate they occupy be clearly defined and underpinned by the state’s support. Neualtenburg has made progress in this direction, but in some zones, especially the extremely valuable “Platz” area, there is no definition whatsoever. The map simply states that all the buildings are “city-owned”. Indeed, one of them is operated as a personal shop.

I suggest that first, as already we are in the process of doing, those properties which the city decides to support be zoned clearly and unambiguously as “city-supported”. Certainly the Rathaus falls in this category. The RA has previously approved a measure defining the status of the museum. The RA should do the same with the church, and with any other properties it determines that the City should support.

With other valuable properties, such as those commercial places around the Platz, I suggest that a customized covenant be prepared by which the properties can be sold (deeded) to those who wish to operate businesses there. Such a covenent might be in the form of a franchise relationship, in which the City defines an interest not in cash revenue but rather in business success, traffic generation, and theme compliance.


(b) Are there any funds (tax) due to the city other than land tax. What is our overall tax policy? Should the possibility of special “assessments” be considered?
In the first RA a measure was approved to suspend collection of sales tax. Despite that, there remains confusion regarding the liability of merchants for sales tax, and, indeed, the private shop currently on the Platz does in fact collect and pay sales tax to the city. This is enormously confusing.

I suggest that all tax be eliminated other than the monthly land fee, which I would propose be re-labeled the “tax” that it actually is. As in all RL economies, the sales tax is a regressive tax which harms both consumer and merchant alike. City history has shown that the revenues generated by the sales tax are insignificant.

Further, the deed which defines the relationship between each resident and their land clearly indicates that their monthly fee is subject to alteration by action of the RA. I strongly urge that that concept of “assessment” be instituted, whereby the amount of the monthly fee (the land tax), be subject to re-valuation from time to time depending on an assessed resale value of the plot in question. This is the custom in RL, it is fair, it is transparent.

In addition, should the City be faced from time to time with special money needs which it finds itself unable to raise from regular revenues or from the sale of bonds, the Treasurer may propose, for the RA’s approval, special “assessments” from each resident, proportional to the assessed value of their land, to cover those unusual circumstances.

(c) Economic data collection. There should established a system of economic data collection, through which the revenue flow emanating from commerce in Neualtenburg might be tracked. It is not the intention of this proposal to track the business data of identifiable shops, or to use this data for tax assessments. Rather, the data should be anonymous, and purposed solely to document the revenue base and growth of the businesses of the City as a whole. The revenue stream deriving from Nburg businesses, like the traffic, is critical information needed for the important decisions facing the City; the budget, tax revisions, and expansion to new sims.


5) Provide merchant support materials and services. (a) Pre-made and modifiable premises, signs, storefronts. (b) Advertising packages. (c) A city-paid public relations program to identify/brand Nburg to all SL residents.
There should be an aggressive program to support and promote commerce in Neualtenburg. Currently, merchants seeking to set up shop within the city walls are faced with strict “theme-compliance” rules along with parcels equipped with non-modifiable buildings and limited prim allowances. Other than Kendra’s new project to supply cheap, simple shop “fachwerks”, merchants’ only options have been to hire a builder who was capable of creating a theme-appropriate building.

I suggest that a “Chamber of Commerce” project be initiated by the Guild for the purpose of promoting business in Neualtenburg, assisting merchants with the resources they need, buildings, vendors, storefronts, signs, SL-wide advertising packages. Also, setting up a listing of qualified people ready to support and assist new merchants, sort of mentors, in the ins and outs of Neualtenburg rules and special problems.

In addition, Neualtenburg should establish and maintain, on an on-going, year in and year out basis, a promotion and advertising campaign in the SL universe. It is of utmost importance that the City manage its image in a professional, tuned fashion. This should be done by engaging a top tier, qualified professional organization; it is NOT something which the City should plan to do in house. There must be a serious and long term budgetary commitment to this effort.


6) Review of the covenants, and development of enforcement provisions, to ensure that the unique identity is maintained.
The danger, of course, with developments such as proposed here is that valuable elements of the vision which we have managed to create will be damaged or lost. I suggest that we initiate a review of the covenants as they are now incorporated into the deeds, to make sure that they reflect our current convictions as to the direction of the vision. Then, enforcement arrangements should be created and put into place. Enforcement at this simple stage of our development might be as easy as a committee of Guild members which review builds and other property usage to determine if problems exist and initiate conversations with the affected parties towards resolutions.

Specific projects of the Guild, currently on-going, or approved and ready for implementation. Also, an agenda for new Guild projects.


1) The new Rathaus was completed by Kendra Bancroft just prior to the January 2006 elections. The second half of the payment is pending, as per the resolution which approved the construction.

2) The Marketplatz Fountain was built by Kendra in exchange for donations received by it. Those donations are still being collected. I suggest that the remainder of the construction cost be paid to Kendra from the City Treasury. If we wish to leave the contribution box, proceeds should go to the treasury.

3) Museum. The project to build the museum has been sub-contracted by Kendra to Keltrien Baker. I’ll be speaking with Keltrien to determine where we are in the process and to review the terms of the RA resolution which authorized the museum.

4) Minor improvements. The Guild has been authorized by the RA to perform minor improvements to the sim without further RA approval. Please! Guild members! Before you take it upon yourself to improve this or that, let’s establish a list of projects. This is a perfect use for a wiki page on the site, with new projects added at the top of the list, pushing down the older ones. Then, you can attach your name to that project. If anyone has a problem with an improvement, or just wants to see who did what, it’s there on the list.

The problem right now is that Guild members are showing up and apparently on impulse taking it upon themselves to perform a variety of “improvements”. Most of them are delightful. But, in a community environment, the residents deserve to know who does what and to see overall what’s being done.

5) Citizen resources. The “Warenhaus” (is that “General Store”?) across from the church was originally established to provide free and low cost materials for residents. At the time it was first equipped, the primary concern was to enable folks to comply with the theme requirements of the deed covenant.

I suggest that the need for such a resource is greater now than ever. The residential resources should be expanded. There should be a vendor there for modifiable fachwerks, as there once was. Vendors for house parts… you can now get a door and a stoop, but what about fireplaces, window boxes for flowers, number plaques for your house… There needs to be a much greater array of textures, since these are an integral part of maintaining the theme.

None of this need be free. But it should be low cost and available only to residents. Fees should go to the person who made it.

And, retail/commercial resources are urgently needed. Various signboards, both hanging and flat-to-the-wall, complete modifiable storefronts, vendors… many things are needed.

And I will suggest that this establishment be moved. The current location is far too valuable for a warehouse of supplies for residents. I propose that the City devote a house on one of the sidestreets, tucked away in a residential area, for such a resource. There is one available house on Gwynethstrasse and several on Sudanestrasse which would make good candidates.

5) Vendors. I have proposed that “sales tax” NOT be a part of Neualtenburg life. But the need remains to track the economy of Neualtenburg; to provide data for city planning and budgeting. There are two basic kinds of commercial exchange, products and services. “Products” sold from Neualtenburg could by sold by City provided vendors, which data could be collected in the fashion currently being done by Ulrika on her site. “Services” provided by Neualtenburg-based merchants, such as the Landscaping service that I’ve set up, can be supplied to the city by monthly reporting. The mere existence of city-provided vendors can be a convenience which spurs new merchants.

6) Personal resident accounts. A very important project. This is what Ulrika has recently published about her progress on this project.





I look forward to seeing this new system in place. Long needed.


7) Mapping. The City urgently needs accurate maps; for land sales, citizens records, and city planning. Creating a map by hand is labor-intensive and extremely time consuming. We must initiate a project to produce maps automatically, using the llGetLandOwnerAt() function (hopefully) feeding some kind of charting mechanism.


Guild organization. Many projects.
(a) Keeping accurate and public membership lists.
(b) Developing a system of voting and governance.
(c) Develop a system for admitting new members.
(d) Develop a system to assign City-funded projects to members.
Define the role of the Treasurer/Estate manager in relation to the Guild and in relation to the City.
(f) Define the role of the Website Administrator.


End of the Proposals.

If you got this far through these, thank you! I look forward to discussing these matters with the RA and other interested members of the community.


Sudane

Sudane writes:

" suggest that a “Chamber of Commerce” project be initiated by the Guild for the purpose of promoting business in Neualtenburg, assisting merchants with the resources they need, buildings, vendors, storefronts, signs, SL-wide advertising packages. Also, setting up a listing of qualified people ready to support and assist new merchants, sort of mentors, in the ins and outs of Neualtenburg rules and special problems."

I'd be very happy to get involved with this, I actually think this is something I'm rather good at.

FYI, I'm setting aside some time to work on the museum this weekend, so I'll have something to show you by Sunday night Sudane.

Shamelessly I admit only having read just now that long proposal, which in a sense sounds to me that it's an adequate answer to Frank Lardner's essay on Neualtenburg and its future development.

Sudane, it's hardly surprising that I cannot find any fault or disagreement with your ideas, although I expect some compromises to be needed in a few points. The key issues, as I understood from some comments exchanged on the overall document, are mostly related to "ownership" of shops in the Marktplatz and an eventual "sales tax" on products sold there. These, I believe, will need some discussion as there are different views on how these should be handled. But I also think that they are a minor aspect that can be worked out.

Several major points are much more fundamental, and I think that on these, not unsurprisingly, most will agree with:

1. The principle of "getting paid for your work". As we have seen on recent events, this is currently a cause of much anger and discussion. Kendra, as the Guildmistress, did step up on this issue to the RA, and set an agreement in place: basically, that all public/civic infrastructure, from now on, would have a price tag to it, and the City would have to enter an agreement on how to pay it. Also, that past infrastructure would be "exchanged" for a formal agreement that all future infrastructure work would be contracted to the Guild in the first place (the Guild would have to refuse the contract for the City to hire someone else). This was, in my eyes, an important first step — one that at least managed to get the building aspect of Neualtenburg structured and formalized. Now we need to cover all other areas of "work for the city" as well. Your guidelines seem to be a good starting point.
   
2. Rezoning the Marktplatz area. It follows directly from Frank Lardner's analysis, and the excellent example shown by Altenburg (which is not easy to navigate to) is really what makes us rethink completely how the Marktplatz has to be redeveloped. BTW, Sudane, you're right in assuing that my sales at the hidden-away shop are zero (or below L$100/annum in any case :) ). I only fear a bit about the long time in rezzing textures at the Marktplatz. Beyond that, it's just a question of what I consider "minor details": how many shops, how they will be accessible to citizens, how they will be promoted, etc.
   
3. Providing more base-level items for new shops/homes. I agree with your assessment. Yes, there are a few in-theme textures there, but hardly enough for new residents wishing to start furnishing their homes "in theme". I think that this should be something for the Guild to arrange/promote: set up someone responsible for providing "basic Neualtenburg-style items and textures" — I agree on "low cost" instead of "free" — and keep asking citizens what they would like to see next, while, at the same time, searching among the current citizens ones that are willing to sell their own, themed household appliances for a low cost.
   
4. The Chamber of Commerce and the consequent agreesive advertising/promotion of Neualtenburg. Count me in for the promotion bit :) I'm glad we start giving some serious thought on this issue. We're rather good at the "passive" side on receiving new citizens — ie. information is readily available, when someone actually has some interest in Neualtenburg. From the website to the in-world notecards, we cover much beyond the basics, and informally, we can help newcomers quite well. What isn't working at all is the way we deal with the merchants and the PR bit. I remember asking the Guild what I should do to place my items for sale in the Warenhouse. Since I need to drop them in a "special" vendor (the one tied to the accounting system), I cannot do that by myself. I need assistance. I've asked for it, a year ago :) Still no reply. I didn't complain, because over a year, the concept of "having a vendor in Neualtenburg's Warenhaus" slowly changed towards "the Warenhaus sells specifically Neualtenburg-themed items". So somewhere along the year I lost my opportunity. Now I sell a few items that are not "Neualtenburg-themed" — but that wouldn't be out of place on, say, the Altenburg *Cabaret*, which is a "part" of N'burg as well. So clearly all this has to change — both the rules for what can/should be sold at the Warenhaus, what needs a special shop outside of it, how these shops can be set up (ie. where do I get a city-approved vendor and how is it "tied" to the accounting system), etc. No procedures/rules or assistance are provided at the moment, and this clearly has to change.
   
   On the PR side, we hardly do much more than promote our major events, and well, to a degree, the Civics Classes. Both Aliasi and myself have noticed that the attendance is quite low on those. We seem to get some exposure when LL does a "major" event and N'burg is featured there — during the SLCC, during the Winter Holiday Festival. But our own major events tend to attract as many people. Still, PR/promotion/advertising is not only event hosting :) The embassy in Isenland is a good start. Setting up (and helping with tier) a chain of "Neualtenburg shops" would also be an awesome idea (Kendra wanted to set up the "N'Burger" fast food chain :) ). We definitely have enough Neualtenburg-themed items for sale; and, of course, those items would also be "infohubs" on Neualtenburg. Alas, setting up shops is a "franchise" operation, has land or renting costs, and is not so easily set up — but I still find the idea fascinating :)
   

I also look towards other unique opportunities for Neualtenburg's residents. This is an analysis that has been lacking in the past, but always hinted here and there. As always was the case, Neualtenburg leads the way in terms of discovering problems with SL, converting those problems in opportunities, finding a solution to them, and offering them to the public at large — who ignore us completely, and then reinvent the wheel after a year or so :) This means that we're living in the future of SL right now, dealing with issues that will only be solved in 2007 in SL-at-large, and we only explore those issues sheepishly and without much promotion.

Let me give you a few examples. While SL was in turmoil about the "Government in SL — NEVER!" issue, Neualtenburg was forging out a Constitution. When this was actually in place and we had started to actually use it, the rest of SL was confronted with the issue on "ethical commerce" — while we had a working Guild, which is controlled by a balance of powers set up in the Constitution. Over a year or so, I have seen the rise and fall of at least 8 organisations trying to set up their own "merchant association". All of them failed. People are still trying, though. Neualtenburg, in the mean time, explores the possibilities and controversies of dealing with the Guild as both representing the merchants, as well as generating contracts (and thus income) for their members, while at the same time supervising the quality of products produced. All this we find "natural" and tend to shrug off as being "just part of what Neualtenburg is". Well, not so in the rest of SL. Here, philosophy, politics, and group pressures try all the time to find a viable model. Perhaps they will do that; perhaps they never will (SL lacks a superstructure that controls and oversees a merchants' association; we have all that set in place, and tested it out in practice, saw the problems with it, and compromised on solutions — one year and a half [almost] of experience).

Some months ago, people got mad because of some "shady finantial propositions" that are being offered in SL. The whole discussion on top of the "finantial offerings" in SL, things like accountability, the right of the public to know where the money goes, sprouted all over the place, as residents "demanded" that LL allowed SL to be "more transparent". The drama subsided, but the question was raised: how can a resident get some guarantees on their investments? LL's answer publicly posted answer to that question was: residents can't. Sorry about that. Go back to gluing prims together.

Meanwhile, Neualtenburg had several months on a working bond system, several proposals on expanding that same system, and ideas on installing an Investment Bank in the near future. All these work quite well since they flow naturally on a few principles that are set up in Neualtenburg — the principles of accountability, the balance of powers that check and double-check on each other, using land as a guarantee of your investment but also the City's reputation (instead of a single person's reputation), and a long-term vision (ie. there will be a "Neualtenburg" in five years, even if it looks very different from the one we've got right now :) ). We haven't capitalized on our "discovery" on how to make these things work. In Neualtenburg, all these issues are "easy", since we derive authority from a source: Government by the people, a Constitution, and a law system — whereas on the rest of SL these things don't exist, and its almost impossible to set up a financial system without those. Again, we have a year of advantage here.

A few months ago, a notary system was introduced by Zarf (now a Linden employee) to finally address an issue that has long bothered residents: how can they prove they have a valid contract? This notary system was also surrounded by the ensuring drama, although many welcomed it. It relies, though, on the reputation of a single person (as almost anything else in SL), and the technical guarantees that the system is unbrakeable (except by the notary himself, of course, who can forge signatures easily). This is still an area for much debate in SL. And just because you have a valid contract, how can you enforce it? Again, SL provides no mechanism for enforcement of contracts. You can yell as loud as you can that you have a valid contract, but the truth is, there are no repercussions on violating that contract, if you're prepared to accept a loss of respectability and reputation (just start afresh with a new alt). So, while the Nota Bene notary is a nice technical gadget, and solves the problem of authentication and non-repudiation, it does not "solve" the issue of people defaulting on contracts or payments. Technical solutions can't help that way.

Neualtenburg commemorates one year of its home-brewn, low-tech, half-a-dozen-badly-scripted lines notary system. The technology hardly matters, the N'burg Notary derives its "power" and guarantees not from cool shiny technology, but from a firm system of laws and a court system with appeals. In case of doubt on a contract/deed, the notary is basically an aid towards a legal action in court, and not the means. There are mechanisms for people suing others in Neualtenburg (it didn't happen yet, but almost twice :) ), for presenting evidence as they see fit, for demanding a fair trial, and for appealing. And there is even a way to deal with offenders: in our case, only "exile" is possible (and potentially a loss of income/investment), but it's much more than what SL currently offers.

We totally neglect these things because they are so "common" for us. So common, as a matter of fact, that so far nobody even needed to try the system out :) As soon as we came to the point of acting inside the legal system (it happened a few times...), people compromised instead. Just by having a legal system we actually provide a deterrent to frauds/cheating/abuses. They may still exist (and as N'burg grows, this is inevitable), but people know what they can expect if they go against the rules. In SL, there are hardly any rules, and "unethical behaviour" is just vaguely mentioned in ToS/CS (in the form of "no hate speech"), so, the truth is, LL won't look twice at an Abuse Report that says "I've been defrauded! Help! Here goes a notary-signed notecard with the contract". The ToS/CS does not allow people to petition for a "fair trial" by LL.

Flyingroc briefly suggested once incorporating his real estate business in Neualtenburg (ie. the HQ would be under Neualtenburg's law, although his business would be conducted mostly outside Neualtenburg). For many this was just an "interesting" concept. For me, it's a serious blow in the way business is conducted in the whole of SL. Under Neualtenburg's law system, Flyingroc would provide his customers with accountability, and, for those that are citizens of N'burg as well, a means of getting complains towards first the Guild (who supervises/oversees all commercial activity in N'burg), and, if no agreement could be found, appealing to the court system. Now this is something that no one in SL is able to offer: fair trials, justice, third-party accountability, appeals. The best someone can do right now is getting a "stable" merchant's association (as said, 8 have tried, 8 have failed...) to eject an unethical member from their association and revoke their "seal of approval". That's certainly nice, but how would a customer get reparations/indemnizations from having been cheated? The merchant's association could only shrug, act as mediator, but they would have no "power" to do anything. Alas, such is life in the lawless mainland of SL: tough and unfair.

Enter the model of "N'burg-incorporated" companies. They have to work under a legal system with supervision. People can look at their revenues all the time. Citizens have a way to deal with complains. So there is accountability and transparency. And if you fail to comply with the system, you know what will happen: loss of citizenship, exile, closing up your company in N'burg. For the customers this would mean: "uh-oh, this guy didn't manage to survive a fair trial under a legal system — what kind of reputation do they have, anyway?" For the company, this would mean they'll be giving their customers an extra advantage, for free: the ability to formally complain and sue the company under a legal system that, while limited, works — at least to the extent that your company can be closed and expelled from the City forever if you don't comply with the legal system.

This is, as a matter of fact, an "inverse fiscal paradise". In the anarchic and lawless SL, where anything goes, Neualtenburg provides the only viable source of law, order, fairness, and accountability. This makes us special — and an asset for companies wishing to have their HQ in Neualtenburg. Also, they will have (in the future) access to an Investment Bank that is (at least) City-controlled/overseen. Remember Luxembourg or Switzerland. Switzerland does not make its money with chocolate or cuckoo watches; actually, their wealth comes from steel, tourism, and the chemical industry, but mostly from the financial services. Luxembourg is all about financial services. I think this is one of the greatest advantages Neualtenburg can offer to the big businesses out there. Imagine Anshe's Dreamland headquartered in N'burg! At last, all her customers would have a way to check on Anshe's reputation :) Currently, it's almost flawless, but the truth is, there is no way for a resident in SL to check these claims. A N'burg company, on the other hand, would be able to verify reputation — it would be a requirement, not just a "service".

With companies HQ'ed in N'burg, and the embryo of a financial system, I expect that the next step would be lawyers, accountants, and auditing services :) Well, all of these have to work inside a legal system — the best that SL has to offer are "moderation services", but since they require voluntarily submit to it, they hardly have a chance to work (this mostly means that if people are willing to submit to a moderator, they're probably even more willing to compromise anyway — so there is no "added value" in the moderator, except for calming people down. Important, yes, but not crucial). N'burg, however, can provide a framework for legal action when moderation fails. And the legal system's decisions are enforceable.

So, where am I leading with this long post... in my business experience, the way for "start-ups" to survive, is to concentrate on a niche market, focusing on what they can uniquely provide that others can't. I can hardly expect N'burg to "compete" in its current two major areas: content (ie. commerce centred on selling items, as well as event hosting) and land (ie. deeds and ownership). We're too tiny and insignificant in the midst of 2000 other sims, and grow much slower than other projects. Sim-wide commercial areas, like Midnight City, Rue D'Alliez, or the Teazer's Island, are much better positioned to grow at incredible rates, each one with its own "strengths", which far surpass what N'burg can offer. And there is no possible competition in the real estate business with multiple-sim operations like Dreamland, Hiro Queso, Ginko, and so many others. The only "uniqueness" we have to offer is the vote — not much worth, if you don't have any use for it — and the themed sim (which has its drawbacks, since a few like it, some don't).

But I don't think that we should discard either commerce or the real estate business! Right now, especially the latter, are the ones that fill up our Treasury coffers :) and they are also the ones that anyone in SL can relate with. "Business" in SL is mostly content and land; so N'burg has to provide those, adding its two carrots to make the offering interesting: a vote, and a theme.

What we should also focus is on the areas that don't have any competition at all, and where N'burg is unique. These are all the above areas I've mentioned — the ones requiring a government, a legal system with appeals, accountability, transparency, and enforcement. We have "lived" under all these assumptions for so long, both iRL (of course!) and naturally in N'burg, that we tend to forget how unique and different they are. And only now, in the past few weeks, has the discussion hit the rest of SL: how can SL provide businesses that needs a legal framework to operate? While hundreds of concerned residents have been discussing this for ages, without coming to a solution, N'burg has a solution in place for almost a year and a half. And we don't capitalize on it.

But we should. :D

Sudane, your thesis and its defense thereof is flawless and compelling. So compelling, that I support the proposed changes to the city's mode of operation fully and will do everything in my power to help this come to fruition. I'm so excited about this, I actually wrote this reply on the plane from Frankfurt to Istanbul.

I agree that all land around the Platz should be privatized with governmental structures relocated to less desirable plots. I also agree with your argument that the majority of those who join the group are looking for a vehicle to promote their own personal financial gain rather than wanting to join and contribute to a group project. Additionally, I support the call for compensation as it will retain and reward those who do contribute to the group.

Of course there are a few caveats. First, as Gwyn points out, the focus on commerce has been done in SL and is not a unique differentiating quality that will further our reputation as a cutting-edge project. Provided it does not detract from the project's differentiating qualities and its expansion, I think growing this bread-and-butter side of the project could support the more progressive side of the project by increasing membership and retention.

Additionally, I want to make sure that modifications to the sim's layout maintain the goals of the original layout. It must remain a curvilinear dense medieval Bavarian build. I want to retain a unique build with a strong theme without degrading into a mall with a mild and unchallenging theme. If that can't be done in N'burg, then we should add a second sim optimized for retail.

As an example of what I want to avoid is the replacement of the original Rathaus and SC meeting place. The original multistory structures were razed in favor of three two-story self-similar structures without front doors or walls. To me this is a step away from creating a compelling environment and taking a step towards creating a typical outdoor mall. As evidence, the structures don't have doors and windows, invoking images of larger SL open-air flea markets and their look is only reminiscent of the original Bavarian theme. (Sorry Kendra. )

~Ulrika~

I find that to be a very interesting idea; even though (at heart) the only thing we can ever use to back up those things is exile, as you say... Neualtenburg's been in existence for a fair piece. Get enough businesses involved, who'd want to deal with someone kicked out of it? True, one can start over again from scratch with an alt... but starting again from scratch isn't exactly a welcome occasion for most, I imagine.

I think in the future I may add a bit into any agreement for custom work I do something about using N'burg's legal system if they have a problem with it.

Mostly, Ulrika --because they are not finished --they are simply 7 prim units to build onto as a base.

If you had bothered, however to ASK me about it --you'ld have know that.

Sorry indeed.



PS. They do have windows at any rate --perhaps you didn't bother to look at them.

OK heres what it looks like and only 20 PRIMS!!!

Sorry! I'm just very concerned about those buildings. Given the visual importance of the Platz, the discussions over public versus private zoning of these lots, and the laws concerning RA consultation of reconstruction, I think this should have been approached carefully and publicly. With that said, don't be upset with me -- I'm not upset with others for removing my builds. Let's call it an even wash.

The question is now, was the law passed to rezone those lots? If not, we should do that now (and I support it). When they're reconstructed, could they be created in the multistory auf-dem-Platz Frankfurt-esque style?

~Ulrika~

Given that your proposal has generated great interest and mostly positive repsonses, Sudane, how do you see it fitting in with the recent push for expansion? What's your plan to implement this step by step and how can I facilitate? Will you select the MPP to put forward this platform (it seems logical)?

~Ulrika~

Yes. By all means do so. I think I should consider liquidating my involvement in Neualtenburg.

I, of course would leave Altenburg's buildings and the Eisbahn intact minus my merchandise and personally bought furniture. The City could do with the buildings as they wish, use them or destroy them.

The work I have been doing on the platz, biergarten and Rathaus has all been very public and all under contract with the RA, It has not been a "Tiny Town". The fact is it was all done carefully AND publically.

I expect Neualtenburg to settle it's bills with me upon the same terms that have already been agreed upon by the RA.

I suggest that you:



Cos that's an excellent way to treat the artisan class of Neualtenburg's citizens.

This is not an ultimatum. Neualtenburg will get the infrastructure of Altenburg's buildings, I simply am now considering it best for me to leave. If you like I will finish the schloss on a deadline you set for me, or I will simply refund your money and you can have outside artists either demolish it and finish the job or not.


Obviously, I, have zero idea of what works visually in Neualtenburg. Thank you so much for not personally insulting my artistic vision.

I have decided to leave.

The deeds to my land I give back to the City and will happily sign them back to the City. I do this not in animosity.


I've removed all my merchandise and personal belongings. The buildings (with it's textures) have all been left intact. I also leave the working clocktower on Kendrastrasse.

I hope you will let me retain the name of "Altenburg" (being a whole cloth creation of my own) which I would like to set up in Takalo near the original site of Neualtenburg, and I would prefer you rename Kendrastrasse to something else.


I expect any outstanding balances for work I've done under contract to the RA to be paid according to those contracts. No quicker. No slower.


It has been my pleasure to serve the interests of Neualtenburg, and if my services are ever required as an independant contractor don't hesitate to give me a call.

Gwenyth, your excellent proposal echoes many of the elements of "Towards a Theory for Enforcing Contract, Resolving Disputes and Incorporation"

Neualtenburg has an opportunity in its current political re-organization to focus on making itself "commerce friendly" (which includes offering valuable enforcement structures) instead of "Bavarian architecture friendly."

I suggest that if providing a commerce haven becomes a greater focus, you may find some revenue opportunities in terms of commercial user fees or incorporation fees that can pay for the virtual government experiments.