Linden Labs taking a more active role with the economy again?

Sometimes even the standard Linden newsletter, the Second Opinion, contains some interesting tidbits of official Linden policy:

So far, the usual happy Linden position of "all is well, SL is growing". But then ...

Anyone looking at the development of the L$ might chuckle a bit at the last sentence. But it is good to see an official statement that people at LL are watching what happens and are actually thinking about ways to subtly steer the economy and react to changes in the environment.

For a long time has LL been forcing all Premium subscribers to buy 500 L$ per week, though at a discounted rate of (up to) 361 L$/$. It'd be a nice change that they let everyone decide how many L$ to buy in this fashion Maybe they'll propose currency subscription plans + basic 512 sqm tier, and vary the amount L$ printed in the total by adding in L$ bought from the LindeX beyond a given nominal amount ? I'm sure people like RBD would see this as a lobbying success

I'd also like to hear Vasudha's opinion on this: what if instead LL did back up the value of L$ themselves, by selling and bying them back at whatever fixed rate they decide ? I think that would amount to the same as adjusting the premium stipends and the corresponding premium subscription fee. I just want the economic point of view, not the tax / legal situation this would put LL in.

I agree. I would like the choice.

I'd just like to say, after Torley's post yesterday, and the communication I'm starting to see, well done LL for listening! Keep it up!
We gotta remember to tell them when they've done good, as well as when they done bad.

Agreed.

Jesrad, this suggestion is more or less the wel known idea of LL acting like a kind of Federal Reserve Bank (or ECB or Bundesbank or ...) regulating the "temperature" of the SL economy. Modern central banks do it differently (by changing certain interest rates; but we don't have loans and interest in SL) but the idea is the same.

While this is not a bad idea, I guess it could be gamed too easily in the current SL economy - where single players control huge chunks of the economy.

LL has been - understandably - very wary in the past to put USD back in the SL economy. So I don't have very high hopes for this model to be implemented soon.

However I still have to say ANY changes in the current SL stipend plan that amounts to removing or reducing them is a huge mistake unless LL starts requiring all in world employers to PAY thier employees a viable minimum wage and enforcing same with stiff penalties for those employers who do not comply. removing the income of the new folks that all in world businesses depend on spells the death of most new content creation, and ultimately the death of the SL economy as with no one buying stuff, businesses will fail, shops will close and with nothing the buy what will the money mongers do with thier precious L's then that no longer have ANY value whatsoever in world. Problem, a declining in world and outworld economy for the L's..solution..put a stop to the in world corruption and caterring to a certain few by a lot of what is supposed to be enforcement of community standards in game but usually is not responsive unless you are one of those money mongers. Not referring to you Torley, but there are some who are that way. In fact waaaay too many.

So where exactly do we start telling them that the reduction of stipends for new players is the most ridiculous idea yet?

Who do we tell? Does anyone at LL care that the MAJORITY of players do not wish to participate in online cut-throat capitalism, yet are forced to because of the tiny minority who do?

When a game becomes an income, all the fun and purpose of playing it is lost. When players won't put on anything unless they can make money from it, you can kiss goodbye to all the quality events in the events calendar and you'll just be left with casinos and malls advertising ther, and new players will have nothing to do.

Reduce the number of new players, and the game slowly shrinks and dies.

15,000 new members a month is rubbish. That's just how many accounts are created. A member should only count when they are a Premium account - until then, they should be classed as visitors.

You don't know how much I want to talk to certain individuals at LL and wake them up from their fantasy existance and give them a good smack round the head and a dose of reality. Keep this economy crap up and the game will die, because nobody will be able to afford to play any more.

Evidently the recreational pharmaceuticals have been doing the rounds in the office again. It's the only possible explanation I can think of for these stupid ideas.

Lewis

Oh Lewis can we just stop to smell the flowers for a second? Enjoy the sun our faces?

Can we all agree that nobody will be accepting a reduction of premium stipends without a reduction in Premium fees as well ?

Just so it's clear, I was celebrating the fact that more communication was coming from LL, nothing more. And yes, a reduction of fees would be appropriate if premium stipend was reduced.

Lewis I have not quoted your post but I do think you need to wake up and smell the roses.

Business is business and money is money. As debated before Second Life is not a game in the traditional sense, perhaps I can define that further by saying Linden provide a platform as a common carrier in which anyone can express themselves.

Like in real life there are some rules we must obey to live in world. But creativity has a price and a labourer is worthy of his or her hire.

Therefore in any virtual world like Second Life (where residents create content) you need an economy to reward those who spend time creating.

Indeed (and not wishing to wind you up further) I have just initiated a new business that has a direct relationship between First and Second Life. It is called a Merchant Bank and I am nicely set up now in Plush Zeta next to the Dreamland Hub. If it takes off not only will it enable Second Life Residents to receive fair reward in First Life for goods and services rendered but it might even solve the Linden exchange rate issues as well.

(Please be sure to read the risk paragraphs before investing)

Hi Paulismyname. Can you tell us more? That sounds intriguing! Institutions are something I see SL as lacking in, I'd be interested to hear how you've gone about it.

I think it's very worrying that LL are considering the idea, to be honest.

The idea of careful, gradual change sounds quite bad, for instance. If a change is announced in advance, there'll be speculation on the L$, creating unintended effects. If changes are made incrementally and not announced in advance, there may be a crash in Premium memberships, because people will want to wait for all the changes to be done - so that they know what they are getting - rather than paying a 12 month subscription for something that may lose value in 3 months. Same for any business investment in SL. Removing stipend will change the climate drastically - it'll remove the "trick" of selling items cheaply so that they're easy impulse buys with stipend money anyway. Probably the result will be that the price of every item will go up so that even the few sales anyone gets is enough to pay back their costs.

Also, as was pointed out in an excellent post elsewhere - the land cycle has the effect of lowering the L$, even without stipend. A land baron buys an area for a large sum of US$, sells it on for an amount of L$ greater than what they otherwise could have gotten for those US$, but then has to quickly cash out the L$ to pay their increased tier - that's an "under value" transfer and a cash out deadline, both of which act to lower the L$ value.

You don't know how much I want to talk to certain individuals at LL and wake them up from their fantasy existance and give them a good smack round the head and a dose of reality. Keep this economy crap up and the game will die, because nobody will be able to afford to play any more.

Evidently the recreational pharmaceuticals have been doing the rounds in the office again. It's the only possible explanation I can think of for these stupid ideas.

Lewis[/QUOTE]

Oh Lewis, you are giving Londoners and nerds a bad reputation for incoherent thinking, violence, meaningless insults and general ignorance. Maybe you deserve the smack round the head.

Hang on a sec...that was me issuing violent and ignorant threats and insults. *sigh* I guess I'm just as bad as Lewis

Sure... see my signature, drop by my camp fire circle and enjoy yourself. It's all free.

Lewis

IMHO, the day YOU come up with a business plan that attracts US$11m of venture investment.... that's the day you earn the right to tell Linden how to run their business.

Actually with things as they are you're buying 450 L$ per week at a discounted rate of 325L$/$
Quarterly accounts give 450 L$ per week at a rate of ~289L$/$

No thanks. What I meant was LL has started communicating. Let's just savour that a moment, tell them well done, be positive. They have opened a dialogue, let's not throw it back in their faces.

So there you go... "venture investment" ... they expect to make a profit out of their investment, which means that the needs of the users go out the window in favour of lining the pockets of investors.

It's interesting that there has been no official mention of this and what it means for SL. You would have thought that they might have some plans, which is how they secured it in the first place?

Happy customers are informed customers. We are mostly neither.

Lewis

Personally, I'd rather not have to celebrate the fact that something has finally happened that should have been happening all along.

Let's not forget that all of us who pay to play are in reality 'investors' in some way, and deserve the right to hear what is going on. Unhappy investors normally take their business elsewhere, and quite honestly as soon as a serious competitor for SL comes along, I think many may well just do that.

Lewis

Un-f@#king-believable.

Damn right. I'll have my stake rare with pepper sauce please.

Lewis, you have a funny concept of a sucessful business.

Do you really think the easiest way to make this horrible "profit"-thing happen is to not consider the needs and wishes of the customers?

*nods* or at least offer a new incentive to have a Premium Account; just the ability to hold 512m2 of land is not enough. I know of many residents that are on Premium and do not own any land, I can't see that remaining the case if LL do pull or reduce the stipends.