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Is the linden sink really a sink?

LupineFox Paz
Registered User
Join date: 11 Oct 2005
Posts: 60
05-25-2006 21:12
The economic statictics show 59mm lindens entering the economy in April and about 18mm leaving the economy as sinks. All the discussions I read about this talk about decreasing the supply and increasing the sink.

However I think there is a huge misunderstanding about the "sinks". Phillip seems to be saying below that the sinks are actually not "burned" but will be resold by Linden Labs on the exchange.

When I read this it surprised me because I have not seen a single person mention this very large news. If I understand this then there are no linden sinks and no lindens are going to be "burned". The will be sold by LL to raise money to cover expenses. Please read the town hall notes and tell me I'm misunderstanding this.

Quote from Phillip Linden's town hall meeting on 5/18:

One is the case where we charge you for something, like, let's say, we were charging for some new feature in Second Life. Consider, like we charge to create a group today - there's a Linden Dollar charge to create a group. And that therefore are Linden Dollars that we are collecting for providing some sort of capability or service. So, for example, uploading something has a Linden Dollar fee associated with it and it generates a cost to us because we have to buy servers to store the files that you upload. When that happens, in cases like that, there are these pools of Linden Dollars which are essentially just Linden Dollars that we collect from the community by charging for services and you could imagine us potentially selling those Linden Dollars on the exchange.

Now, that type of activity is just sort of using our own micro-currency as an effective way to charge people for things - it doesn't change the money supply. In other words, it doesn't make more Linden Dollars in the world, so it doesn't change the economy if we do something like that. So that's a category of a way to sell Linden Dollars that Linden Lab could do that doesn't have an effect on the - that doesn't change the amount of money in circulation. Wanted to clarify that.
Bloop Cork
This space for sale.
Join date: 27 Apr 2006
Posts: 277
05-25-2006 21:20
Interesting point, LupineFox.

Yes, his statement does suggest that LL collects Lindens for certain services and keeps them instead of destroying them. By saying that it does not change the money supply, he basically is stating that certain collection fees are not sinks.

So, we need clarification on which fees are sinks and which are simply service fees that LL could later sell via the Lindex. He does not say that they will sell them. Instead he says, "...could imagine us potentially selling those Linden Dollars on the exchange."
kerunix Flan
Registered User
Join date: 3 Sep 2005
Posts: 393
05-25-2006 21:29
It mean a 0L$ money sink ?
*ouch*

I tought i misundertstood what Mr Linden said, because english isn't my primary langage.
But if you are right, we're in big trouble.
LupineFox Paz
Registered User
Join date: 11 Oct 2005
Posts: 60
Link to the town hall meeting post
05-25-2006 21:33
I'm including this to make it easier to read the original transcript. It can sort of be read tow different ways.
/3/6b/108906/1.html