The Cure: A New Economic Model

The structure in which players acquire Linden Dollars is flawed. No matter what people say, you can't ignore the pending problem of too many dollars in SL causing inflation and/or a cronic devaluation of the currency.

The cure to the problem is to create a Central Bank. Starting on Day 0, all Linden Dollars are wiped off the face of the map. Linden Dollar (Mach 1) will be retired from circulation. So sell while you can, because the end of days is near.

On Day 1 (1/32nds of second after Day 0), the New Linden Dollar (Mach 2) is created. Although it will not replace the (L$Mach1) dollar. At this moment in time, the money supply of Second Life is L$0.00. Nobody has any of the new L$ Mach2 dollars. The only way to get a new Linden Dollar is to borrow it from the Central Bank with a mandatory repayment contract that you pay back the borrowed L$ + Interest over a given period of time (52/weeks). Maybe on Day 1, the interest rate is 0.00% to get the money out there and expand the money supply.

What this structure will do is create money from debt. When Player A borrows L$100,000 from the Central Bank, they will spend it however they want. Land, Widgets, Sell it on LindenX, whatever. This puts L$100,000 into circulation within SL for other players to use and abuse. Player A now has to repay that L$100,000 @ 2% interest over 52/weeks. Which comes to L$1961.53/per week. This means Player A has to do "something" within SL to reacquire L$1961.53/per week before the Linden Tax Man auto-deducts Player A's account for the money. If he doesn't have the L$, his account will be in the negative. And any dollar Player A acquires will be auto sent to the Central Bank to repay the loan.

But lucky for Player A, Player B is hiring SLers to run a Casino and the pay is L$2000/wk. Player B is making lots of money off gambling because that originial L$100,000 which was loaned by Player A from the Central Bank ended up into the hands of 500 players through various means. And they are all dropping their money on the Slots.

So thanks to Player A for taking out a loan of Linden Dollars from the Central Bank, the SL money supply expanded from L$0.00 to L$100,000. And thanks to Player B for having a vehicle for Player A to repay the loan back to the Central Bank. And because 300,000 other players (if that many really exist) all do the same thing, the money supply can expand and contract as needed. And the Central Bank can control the supply of dollars in the economy through raising and lowering interest rates.


The Long/Short of this monetary structure is to allow the economy to expand and contract to compensate for economic changes and to create a stable economy in SL. If the Linden Dollar is going to be a Fiat Currency, might as well structure it to be 100% fiat.

Wow, just wow.

Why do we the players need to borrow money from the game? LL only sells it so it can control the price of it. It's no different thean Sonys Exchange. It's just a way to keep the money out of 3rd party sellers and keep the money in LLs hands.

The best thing Linden Labs can do is to stop the exchange of money and just sell it outright....


Just my 1$L

Shouldn't you have posted this while the Linden was losing value instead of during a sustained GAIN in value?

A sustained gain that has stagnated at L$300? PuhLez.. hahahaha...

As long as the L$ isn't going to be backed by anything, it should behave like a fiat currency. With debt being the creator of currency instead of next ending prints of money. Let the the economy dictate dollar demand, not some Linden in his cubicle.

And this is why the forums are going away

Would you please provide evidence the value is stagnant at 300? lol

Ohh well.... Send all blame to PO Box 0000, Who Cares, USA 90210.

Right here: https://secondlife.com/currency/market.php


Stuck in a trading range at L$300 for weeks.. Hit me up when you see it rally to L$290.. I'll call the farm and tell them release the Pigs to begin flying..

lmao... you do see that we are only L$300K away from 290, right? We will be there within the hour most likely.

You mean like this post of yours from a month ago right after the Lindens announced they were going to start selling 10k US a month on the Lindex and there was a brief spike to 310?



Or this one from the same thread?



How come when it was at 310 you scream panic and say "see it's falling!" and when it's at 291 you call being "around 300" and scream panic? If you look at the chart from the last 90 days after various changes in Linden stipend/dwell policy you'll see a steady rise in value

I think you need to reexamine your economic model a bit, it doesn't seem to mirror reality or the facts as they currently exist.

We all know thats all RDB is here to do. Shout the sky is falling. Even if he was right, no one would really listen anymore.

RDB: are you sure you saw a wolf this time?

Well we aren't "certain" why RBD is here but we DO know Pan reported being warned for trying to spreading panic while in his BUY cycle but even at the time of this post Pan has no payment info on file. So who's alt is Pan?

My guess is Jaime as Pan continued with the same SELL! SELL! SELL! posts after is seems Jamie was likely banned from the forums for the above offense I would guess.

Hoahaahah.... Better open your wallet, because L$780/million dollars say otherwise...

Call the farm.


Daily Summary
Last Close Date 2006-08-22
Best buying rate: L$290 / US$1.00
Best selling rate: L$304 / US$1.00
Last trade: L$290 / US$1.00
Last close: L$295 / US$1.00
Change: -L$5 / US$1.00
Today's volume: L$11,396,140
Today's open: L$295 / US$1.00
Today's high: L$307 / US$1.00
Today's low: L$290 / US$1.00
Today's average: L$295.9450 / US$1.00

You sure do seem to have a direct line into Linden Policy Police.. We have no room for lackies around here.. This forum is reserved for us good ole boyz. Be gone.

Total L$ Supply (L$) 792,688,314


Keep on believing your chest thumping. Because when L$792/million dollars tries to escape this market, you'll be left holding the bag.

RBD do you ever give up. I can sell for 291 easily right now because the rate is 290. What happens this weekend after that million and a half at 290 is gone? I think we could see 280s and 270s very easily. We'll need many sell orders to keep the value down. There is basically nothing except new sell orders once it gets to that point. You picked a bad time to say things are going to go bad again for sellers. Come back in January when it does start weakening again like last year.

So what! Better sell some Lindens quick to keep that value down Reserve.

Me give up? Bahahaha... Do you? I'll be here until the death of the forums. An ever lasting icon.. Nobody will remember the babble from Mcgeeb, but RBD will be spoken of years from now as the greatest economic mind that has ever graced SL. Your blindless devotion to the L$ will leave you with lint in your pocket.

Hahahahahha.... I'm stockpiling to create a massive dump... Keep on raising the valuation of the L$, because its just more money for me at zero hour.

Actually, I am a little concerned about a rapid increase in value (against the USD) of the L$. That can be a bit dangerous.

Fortunately, I think the lindens are selling L$ on the market to keep it somewhat stable.

To be honest, I kinda liked it at 300 / USD. It made calculating monthly earnings easy ... just divide your daily earnings by 10.

All you've done is become annoying. Yes you'll be remembered more than me, but for the wrong reason. Oh I was wrong too when I said it would be 300/1 by the Fall. Glad I waited and didn't listen to you when you said it would get worse than 330/1.

Silly man you sold it all at L$330/1.

Supply Linden dumped about 1.2mil L on the market yesterday in controled dumps at 295/1. I think he's hit his tier for the month though so should be a while before anymore Lindens are dumped by LL unless they raise his tier level.