Lindens get the **** off the LindeX!

Player 1: works 10 hours, earns L$ 3000. Goes to LindeX market, puts up L$ for sale at 300 L$/USD

Linden: does nothing (extra), goes to LindeX, puts up L$ 5000 (out of thin air) for sale at L$ 500 L$/USD

Player 2, in need of money, comes, sees the Linden much more bargain, buys money from Lindens. Player 1's screwed.

Great.

If LL sticks to the posted plan of selling no more than $10,000 worth of L$ per rolling 30 day period, the actual volume of LL sales will be about .85%. The other 99.15% will go to everybody else.

I wish they had sticked to the original plan, that said 'LindeX is a place where players will sell players money. Linden will NOT sell money on LindeX'.

I still wish they'd never created the lindex , but that's just me.

Think of Linden Labs as the Federal Reserve and we citizens as Commercial Banks. As the economy grows and demands more currency to conduct business, we have or order more L$ from the Central Bank (ie: LL). Its a great model, the L$'s float only increases as demand dictates.

The problem is if the economy becomes over heated, too many Linden Dollars end up in the Float, sending the valuation into the toilet. We have to wait for all the Sinks to suck up the available supply before we see the light at the end of the tunnel...

Aside from the peanut galley crying about the impact to the economy on n00bs not having L$ to spend on day one, Linden Labs is steering the Monetary Policy of SL in the right direction. I applaud their efforts to get the economy off the welfare stipend system...

In other words, US$1/hour.
Please provide a reference that they are selling for L$500/USD.
Then Player 3 comes along and buys Player 1's money. What's the problem?

Wow, I agree with you. How'd that happen? LOL

Thats because I sprinkled pixie dust on you.. lol

First off, you have always been competing with Linden Labs. The stipend sold for as little as L$361/US$. They have changed this, so that now the stipend sells for at the very least L$288/US$.

In the town hall meeting, it was said that they will sell at market price, so you will not have to compete with L$500/US$1. You will have to compete with their supply of US$10,000/month worth of $L, but that should be less than the L$ leaving the system from reduced stipends and loss of premium renewals.

Linden Labs will always get their percentage as they should for doing all the work it took to run the platform of Second Life in the first place. They used to do this soley through the stipend, now they are doing this through the Lindex directly. The benefit of the Lindex is that they can decide to sell less $L, which they have stated they will do when the economy is falling. With the premium accounts, they must sell as much money as they do premium accounts. There is no choice to just not give some people a stipend.

It was just an example... Could've been US$10/hour



While there's no such reference, they haven't said ANYTHING about their prices. Which leaves space (and possibility) for them to undercut players. They might be selling for L$ 301, 302, whatever, undercutting. Even selling RIGHT AT market rate is a kind of undercutting. If they sell X L$ of theirs, that means players will be able to sell X L$ less.



That would be nice, but no. When Player 3 comes along, there'll be another L$ 5000 (out of thin air) on market for L$ 500/USD, again, undercutting.

Maybe currently such undercutting will only happen for 5% of the time... For now.

Selling at market price might seem better than the mythical L$ 361/USD, but it's actually worse. If now the L$/USD is 300/1, then Lindens win not much by putting up blocks for sale at 288/1, because noone would buy their L$'s (just in special cases, when the market has moved much).

By selling at the market price, they're taking money away from the people. And it's 5% of the money being taken away (or US$ 10,000).

What stops them from increasing the 5%? or the US$10 000 limit?



They get their money from the platform from land tiers. Every square meter (okay, not EVERY, but almost) is being payed for. That's the money for the servers and service.



If premium accounts can be created anytime, the market has/had a wall (like L$ 288/1 USD) anyway, so what's the need to create more disturbance, with direct selling?

Again, they did state what they will do with prices.

/3/93/121623/1.html

They are working to lowering if not eliminating the stipend. Less money is coming in through the stipend. They are not just going to give up the revenue from premium accounts. They are going to make back as much of that revenue as they can without destroying the economy on the Lindex. The important thing is that the more they sell on the Lindex instead of through stipends; the more they can limit the revenue they get from $L. They are expressing to us a desire not to see the $L change value quickly anymore. If it turns out they are lying, and they sell L$ to the point that its worth L$500/US$1, then a huge portion of SL will leave the game, and they will likely lose millions of dollars. It is in their best interest not to undercut you until your broke.

The stipend took money from residents just the same as if it were sold on the Lindex. Both cases had the supply dispersed to the public before residents ever had a chance to sell them $L. If you are against the $L being sold on the Lindex, then you should of been against the stipend ever existing in the first place.

US$ 10,000 is currently less than .85 % of the monthly influx of USD. In the last 30 days the combined volume of the LindeX was $1,241,921 worth of L$.

Doesn't Linden Labs Double Count Volume? They count 1 for the seller and 1 for the buyer in the daily volume numbers..

its called market stability. Finally LL is doing something to try and help stablize the L$ market. What seems evil to some have no clue to the business side of things or the economy itself

You tell'm Dragon... Damn hippies don't know a nickel from a dime..

Exactly like ReserveBank said, LL's playing the Federal Reserve system as a way to keep our money supply stable and valuable. This in theory sounds great, and hopefully will live up to it's premise. After all, after the removal of basic stipends, the sales of the Linden Dollar have climbed and strengthened. Add LL's new "Fed Reserve Policy" and thus the value of the dollar should remain within a nice comfortable bracket.

exactly.... so kudos to LL so far

and F the n00bs "OMG TEH LL IS CUTTING MAH PRICE WWWAAAAHHHHH" obviously have not had economics 101

even though its a game... with a buy/sell market certain things MUST happen to keep it stablized... dont like it, go back to warcraft

wow...wow..wow! hold on, did I misread something? I thought Phillips announced that LL will only sell L$ on Limit Price and not Market price. Isn't it so?

*Sigh* usual hogwash from R&D and a few others. Lets begin here. The stipends for starters are not a welfare system. Secondly anyone that sells anything or has earned any type of L in SL has relied on the stipend. Soley so since dwell was done away with. Sellers on LindEx rely on the stipend as well as they made their money off the stipend. The people who dont understand business or the economy are the ones saying its a good thing. Mabye in the real world it is but reflecting towards the economy of SL its one of the worst moves to do especially to the ends R&D is wishing (doing away with stipends completely)

All this forces people to do is buy off LindEx and its working around the theory that if you force them to they will. Well guess what? They very likely wont. I think you forget that the economy relies on people buying things. All these economic policies change is giving people less money and guess what most people in SL arnt going to like it and those that use the stipend now and dont buy L are going to be lost as customers to developers and quite possibly LL. I think the focus here that most of you are on that think its just fine and dandy or even good is just the business end of things.

Its got nothing to do with the social or economic aspects which by the way tie in heavily to business for developers in SL. I could say this all day but those that actually care enough about SL to want to see it live on already know what im talking about and those that are saying that them shortening the money supply that people can get without forcing it on them is good well they will never see the light.

While it may help the L for now it will only be a short term effect and eventually everyone crying that the economy isnt stable enough now will be crying the same thing when they make jack in SL due to not having many sales because they pushed to try to force people to have to buy L. Simply put its only a good move to those who have alot of money and thats not the majority of SL. Take heed of who your customers and where your profit in SL actually lyes before you say this is a good decision.

Actually no. Thats not neccessarily true. With the market how it is look at what i described. Thats quite simple econ 101 stuff. If people arnt spending money the people making money wont make as much. Its a bad move regardless of what you want people to think. Sadly i dont think many people actually know how SL's economy works and that includes you. I have seen the economy over the last year and i have seen when the dips happened. Most caused by panic and the L has been stable for the last month there was no reason for the change at all really.

There is no reason to push for the stipends going away. There is a small small job market in sl so as it is and that is growing increasingly tighter. I took econ in hs and have taken it elsewhere. I know how economics work but in a market economy people have to be willing to spend money. Regardless what you think that much is true. And there is a change with online games in that people dont often spend more then they see fit and alot of the time that isnt alot. If you force them to buy the money they will be less receptive to it and they will also have no real introduction to the economy which will be totally screwed up.

People whining that the economy is unstable are worse then those yelling about LL cutting the stipends being bad simply because they think they know about everything in SL and think whats good for the minority of SL is good for everyone. But the fact is it only helps those that have money it doesnt help anyone else and eventually it will hurt everyone if the economic changes go to far. Any simple person could tell you that Econ 101 or not.

I don't know how your Fed Reserve works exactly, but I know my country's 'Central' Bank sets a target rate and a range (5-10% plus and minus) for local currency versus USD/EUR.

If the exchange rate is within the given range, no special action is being done (other than raising or lowering the interest rate). Should the exhange rate reach the range limits, the Bank intervenes using it's powers (wealth) to stabilize the rate. Of course, the target rate can also be moved, too.

I don't see Linden Lab's actions similar. They are not setting a target rate + a range (like 270-330 L$/USD), rather, they seem to be continually invervening (at the players' expense).
While Linden Labs can't set the interest rate, it can manipulate sings and sources to an extent.

*sigh* the last paragraph here proves you dont know much about the stipend or sl's economy. The stipend gave money to the residents. As i stated anyone that has something up for sale relies on the stipend and those that are selling on LindEx do to to make fresh money. People are just proving how little they know. The problem with the theories out there that the stipend is at fault is the fact that people need money to buy things for someone to make money. If i have a product for sale for 1000L in SL and the exchange rate is 250L > 1 usd and there is no stipend someone then has to spend 4 USD just to buy my product.

The case there people are very unlikely to be responsive to and they will simply do without when it comes to having to spend a bunch of money just to enjoy a virtual world. LL needs to take the focus away from business and the economy a bit and focus on whats good for all of SL not just the business people. Because the people that a no stipend economy would benefit is a very small minority of SL mabye 5% of the total residents if that. You fail to realize that if i buy your product that money came from a Stipend at one point and was spend on your product and has circulated around some. None the less it still relied on the stipend and you did as well. Getting rid of the stipend takes new L out of SL completely and kills off profits for developers. Forcing prices to go down in SL and unless LL is willing to undercut people at times to balance things out then the economy will very likely become unstable just in the other direction.

Then we will have people whining to put money back in and the whole process just starts over again. Get off the high horse of business and look what is good for everyone not just what is going to fatten a few people's pockets for a very breif period.