Increase Stipends.

So, let me go back to the economy question. The Linden Dollar has gone up, recently. That is to say, it has gone down in value in relation to the US$. We made a change to the Terms of Service which was designed to impart a service notice that in the future we might sell Linden Dollars on the Linden Dollar exchange. I wanted to talk about that a little bit.

Part of this is repeating what I said in forum postings, and part of this is new information. The thing that I said prior to the forum postings is 'We are not currently selling Linden Dollars'. We're not, that is to say, we're not making any sales of Linden Dollars on the exchange that basically generate US Dollar revenue for Linden Lab. We did put that advice into the Terms of Service, but it is not something that we are currently doing.

Furthermore, as is pretty self evident, the management of an economy, whether it be the economy of a country, or the economy of Second Life, it's essential that anything that happens be completely documented, so that everybody has the same information as to what's happening to the money supply. If we're selling Linden Dollars, how many Linden Dollars are we selling, why are we doing it. What are the pools from which we are collecting those Linden Dollars, etc. So, in any event where we begin selling Linden Dollars, we will tell everybody what our strategy is and then we'll tell people when we sell Linden Dollars. Furthermore, and I did put this in the initial forum postings, the community should keep in mind that there are really two different ways that one could sell Linden Dollars, from the vantage point of Linden Lab.

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.

The other thing that people have had, understandably, more concerns about would be the case in which we would create new money and then sell it to people. Obviously when that happens, you're increasing the money supply and you don't want to increase the money supply beyond the sort of natural economic growth of the environment. Now for those who follow the growth of the economy, and by the way, there's a new economic statistics page that is in the community section of the website where you can actually see these statistics. The month to month growth in transactions in world is very very substantial, so there are hundreds of millions of new Linden Dollars, each month - there's hundreds of millions of dollars in growth in the amount of overall transactions that go on in world. At present, the new money that we put into the economy which is primarily in the form of stipends is considerably less than the growth of the economic activity in the economy.

So, I just wanted to point out that although their has been some devaluation in the Linden Dollar, and we hate to see that - the amount of money that we're actually putting into the economy, is, from an economic theory standpoint, is probably less than you would expect if you want to put in - so for example the United States manufactures new money at a rate that is approximately equal to the growth of it's GDP, that is, the growth of sales of goods and services to maintain the economy. We're actually doing considerably less than that, so we actually expect our economy to go in the opposite direction - so we expect the Linden Dollars to become more valuable over time, rather than less.

The second thing is, I'd like to advise everybody, that there are a couple of changes that will hopefully have a positive effect on the value of the Linden Dollar. One is that we made the first cut that we announced a couple of weeks ago to the Dwell pool. We made a 50% cut to the Dwell Incentives this week - that translates to a change of several million Linden Dollars in total Dwell payments - that is, that money will not be added to the economy, anymore. The second step will be to remove the Dwell pool altogether, and that will happen on June the 13th.

The second thing that's happening that will happen at the beginning of next week is the introduction of a new way of purchasing Linden Dollars, particular for those people that are buying a lot of Linden Dollars, or speculating on the Linden Dollar currency, and that something called the Linden Buy Order - and that's the ability to set the price at which you would like to buy Linden Dollars if the price reaches the point that you set. It's a capability similar to the way we sell Linden Dollars today, where you set a price, and when the market reaches that point they sell at your price. Well, you're going to be able to do the same thing with buying. That will create more open buy orders and more open buy orders will generally drive the economy toward higher Linden Dollar value. So, that's something that is happening there.

the United States manufactures new money at a rate that is approximately equal to the growth of it's GDP, that is, the growth of sales of goods and services to maintain the economy. We're actually doing considerably less than that, so we actually expect our economy to go in the opposite direction - so we expect the Linden Dollars to become more valuable over time, rather than less.

I myself and the LL team know nothing about economics.

2 steps; simplest:
1-> make Money source = Money sinks.
2-> Unlimited L$ for sale at 249/usd by LL.

LOL, sry Mr. Philip Linden but this really made me laugh I knew you are not an economist, actually you even dont know anything about economy. But i didnt know you were a politician The funniest part is about buy limits:
"That will create more open buy orders and more open buy orders will generally drive the economy toward higher Linden Dollar value."
Yes, it really did 10 points LOWER value hahaha

Come on Kazanture, you should be down with massive price swings and be digging on Philip's jive talking. Unless this really is the last week you'll be selling your texture pack as per the item's description "PAY LAST TIME FOR TEXTURES IN YOUR SecondLifeALL CHOSEN CAREFULLY.ALMOST ALL seamless.
LOW LAG!". I was going to buy the pack months ago, just like I was going to cash out some L$ around the same time but after seeing the massive price swings in the L$ and your texture prices (995L$ to 2,000L$ to 1,500L$), I'm just going to wait on cashing out and buying of certain things.

"SL Anti-Idler v1.1- Stay logged into SL while AFK! - great for camping Now w/Multi-Client Support "

Why are cheat programs allowed and promoted? Surely LL should be cracking down on illegal gameplay.

Lewis

I read through the TOS, and I didn't see anything in there about 'cheat programs', 'macro programs' or anthing as simple as stuffing a penny in your keyboard between arrow keys to not idle out....

This is not a 'game'. There's no such thing as 'farming money'. If the landowner wants to pay you dwell (*until next month), I say let him.

April stipends:
49,935,550

May stipends:
51,738,400

And we still have one more stipend week in May.

This nightmare wont stop till you reduce the stipends/increase the sinks.
You have to reduce stipends. Stop telling us "economy needs more L$ bla bla", if it needs so much L$ why are the people trying to sell for lower and lower rates everyday? Why the L$ stock at lindex increasing everyday? If economy needs so much L$ why it is not buying all of the lindex?
Stop.
2 simple steps:
1-> Money Source=Money Sinks <- will try to pull L$ value up with increasing population.
2-> Unlimited L$ for sale at 249/$ <- will save the balance if SL needs more L$, SL will simply buy it.