Step 1: Eliminate the Basic Membership lindens giveaway effective now!

Okay, so... Let me make a guess, here. The people that want to cut the Basic Account stipend out are 'Haves' right?

Give all accounts (including Premium) the option of auto-buying L$ from LindeX each week. There would be a monthly US$ threshold that you would set. This is purely an account-side change, and would require a CC as normal in Premium (or prepaid via PayPal or some such).

For example, I'd like another US$5 each month in L$. So an auto-buy of US$1.25 each week would be done. That's something around L$350 currently; To a Basic account this would be a *huge* improvement for them - and only for the cost of one small soda each week.

I could see enough Basic members going along with this (remember, this is voluntary) to greatly increase the turnover in L$ under LindeX. Would help fix the whole dropping L$ too I'd suspect.

As much as I'm enjoying reading the flaming back and forth... </sarcasm>

The OP does have a point. The $L 50 a week to free accounts has been going on for awhile and has likely come to the end of it's usefulness in terms of Linden Lab's purposes. It also appears to have had a negative effect on the economy. Printing more money, at least in the RL which SL tries to model, is always a bad idea.

The premium stipend is part of what you pay a fee for every month.. right there with tier. I don't see LL discontinuing that.

Maybe one answer is to end the free accounts and have a new type. Perhaps you pay $5, $10, $15 a month automatically on your credit card. That $USD goes to the Lindex to buy you however many $L it would buy at the rate that day. You get it automatically in game. Have bill dates randomized through the month so you don't get Tuesday spikes like we have now. No new money is created. Existing money stays in circulation. The new basic account still doesn't contribute directly to LL's being able to pay it's expenses, but it would contribute indirectly through rentals, sales, etc. allowing other people to hold land and pay tier.

Don't know if that idea would work, but coming up with at least tenative solutions (based in some understanding of basic economics) beats screaming about the problem.

Wow... so much hostility in this thread!

I'm all spun up... I gotta gotta gotta get my hands dirty over this one:

Q: Who is really at fault for the dropping value of L$'s compared to US$?
A: The same people panicking and screaming about the dropping exchange rate.

If L$ were 'devalued' in SL, prices would increase. I'm not seeing that happening.

So, the real blame for the slipping exchange rate lies only with the people selling their L$.
There's too many of you selling too many L$ for the market to support.

Naturally, this is fantastic for people buying L$... it's a buyer's market! Bully for them!
At least they're doing their part trying to bring the exchange rate back up.

Personally, I want the basic stipend BACK. Without it I think that new players won't get enough of a taste of what SL offers. I think that without some starting 'play' money we are at risk of many newbies never buying L$ or upgrading their accounts at all. Sure some folks are abusing the system... I hope LL finds some way to crack down on them for it!

New ideas are as vital as new players are for SL's long survival. If LL avoided any changes that might have any short or long term impact on the SL economy... it would bring a very lethal stagnation to our world. What's bad for SL is bad for its economy too. You could try to say "well just don't implement ideas that are detrimental" but benefits have costs and one person's profit is often another person's loss. It's all relative to where you stand.

Sure, it would be amazingly cool if we could recruit Alan Greenspan to come and manage the Linden Reserve as fun retirement project... but it is way too early for LL to make stabilizing the SL economy one of their highest priorities.

So, How do we 'protect the L$ to US$' value?

Discourage folks from selling L$'s, up the currency sales taxes!

Establish some sort of 'L$ interest rate' encouraging folks to save up and keep their L$ in game instead of cashing out. Of course, they may end up spending less too... c'est la vie.

Face it... any plan that results in an increased value of L$ to US$ will probably result in fewer players buying L$'s... fewer players shopping/renting and fewer profits for you. Take your devalued L$ and come up with ways to increase your volumes instead.

And, only because a post in this thread just wouldn't be complete without some sort of ad hominem attack: I find you and your argument against basic stipends distasteful, mean, and as absurdly discriminatory as males making laws against abortion... or straights wanting to prevent gay marriage. Chicken Little, you meddlesome little rabblerouser, this is not a crisis.

--
(p.s. to 'break even' in SL at this point... I would need half a million L$. My viewpoints are skewed as a result. However, I do remember a very long and conscious deliberation over whether or not to upgrade from basic to premium. I almost didn't, but am still glad that I did... despite having invested so much $ in both LL and SL in the last 2 years. I'm here for the whole experience, not for how much profit I can stuff in my pockets.)

It cost the Lindens NOTHING to create play money. And there is no real world gold behind the actual Linden. The Lindens could give eveyone 100,000 lindens a week and it would be no skin off their backs, or would it cost the Lindens a thing.

That's an interesting concept. Let's consider it.

LL gives everyone L100,000 a week. In 24 hours, the L$ drops in RL value from about $3.50 /1000 (at this time) to nothing per 1000... because everyone has more L$ than they could possibly spend.

Instantly, the primary reason merchants have for merchanting... is gone. They can then either keep shop open for reputation (which would be nice, but face it, just isn't going to happen)... or a third party company comes in and presents an alternative currency source-- one that has some intelligent control behind it. They don't flood the market. They don't glut the market. They just create a viable currency exchange and within a couple of months, it's business as usual... with LL cut out of the economic deal.

Another scenario would be that all transactions start going through PayPal... which would be cumbersome, time consuming, and since direct money is involved, likely greatly cut the overall busienss of LL and everyone goes "bankrupt".

Another scenario...

Merchants, no longer having any financial reason to keep shop open, close shop. Landholders, no longer able to rent land due to the elimination of the L$ as a viable commerce item, require PayPal for rental payments. Forseeably 50 to 75% of all privately owned rental land shuts down.

The most predictable outcome would be that the entire face of Second Life would change. Whether Linden Lab was even to remain in business or not would be the first issue of question. If they did, SL would likely mutate into something quite a bit different than it is now.

Shoot, Linden Lab might even have to add some company-generated content just to stay in business. It's difficult to forecast. Might be better. Would most likely be worse. The population could drop tremendously. Suddenly, SL is nothing but a glorified chat board (which in truth, with the reduction in general non-club events, it's pretty durn close to being right now).

OK, me done.

It cost the Lindens NOTHING to create play money. And there is no real world gold behind the actual Linden. If they lindens had not lifted their restriction on trading Lindens for Dollars then the Lindens would be only worth somethng in the game.

The Lindens could give eveyone 100,000 lindens a week and it would be no skin off their backs, or would it cost the Lindens a thing.

That's an interesting concept. Let's consider it.

LL gives everyone L100,000 a week. In 24 hours, the L$ drops in RL value from about $3.50 /1000 (at this time) to nothing per 1000... because everyone has more L$ than they could possibly spend.

Instantly, the primary reason merchants have for merchanting... is gone. They can then either keep shop open for reputation (which would be nice, but face it, just isn't going to happen)... or a third party company comes in and presents an alternative currency source-- one that has some intelligent control behind it. They don't flood the market. They don't glut the market. They just create a viable currency exchange and within a couple of months, it's business as usual... with LL cut out of the economic deal.

Another scenario would be that all transactions start going through PayPal... which would be cumbersome, time consuming, and since direct money is involved, likely greatly cut the overall busienss of LL and everyone goes "bankrupt".

Another scenario...

Merchants, no longer having any financial reason to keep shop open, close shop. Landholders, no longer able to rent land due to the elimination of the L$ as a viable commerce item, require PayPal for rental payments. Forseeably 50 to 75% of all privately owned rental land shuts down.

The most predictable outcome would be that the entire face of Second Life would change. Whether Linden Lab was even to remain in business or not would be the first issue of question. If they did, SL would likely mutate into something quite a bit different than it is now.

Shoot, Linden Lab might even have to add some company-generated content just to stay in business. It's difficult to forecast. Might be better. Would most likely be worse. The population could drop tremendously. Suddenly, SL is nothing but a glorified chat board (which in truth, with the reduction in general non-club events, it's pretty durn close to being right now).

OK, me done.

You do know, that the markets thrived and grew (Better I think than now) before the Lindens gave the ok to exchange Dollars for Lindens....

Zapp try again.

It cost the Lindens NOTHING to create play money. And there is no real world gold behind the actual Linden. If they lindens had not lifted their restriction on trading Lindens for Dollars then the Lindens would be only worth somethng in the game.

The Lindens could give eveyone 100,000 lindens a week and it would be no skin off their backs, or would it cost the Lindens a thing.

You do know, that the markets thrived and grew (Better I think than now) before the Lindens gave the ok to exchange Dollars for Lindens.... Zapp try again.

You do know, that the markets thrived and grew

The point is, everyone worked there for nothing more than honor, reputation and the occasional compliment or thanks. And it was great. I have no doubt that if economy had never been a part of SL... if people built and designed and scripted just for the joy and reputation of it-- SL would have still thrived.

But it wasn't, it isn't... and now it's too late. Reality bites sometimes. Still, it would have been glorious.

Before I came to SL I was a member on a small board called Worlds.com. Not a whole lot of users. Lagged like a fiend. Difficult to build there. Not a lot to do. It was basically a virtual chat board. But one could walk around and explore "worlds", look at artwork and collect avatars like mad (all avatars were free).

There was no virtual economy, no RL economy. People did what they did for the rep it got them. I was a poet and made a decent rep helping out at poetry events. A user called Blue Knight was a recognized excellent world builder. Other users were adept at creating avatars or functioning as tour guides.

The point is, everyone worked there for nothing more than honor, reputation and the occasional compliment or thanks. And it was great. I have no doubt that if economy had never been a part of SL... if people built and designed and scripted just for the joy and reputation of it-- SL would have still thrived.

But it wasn't, it isn't... and now it's too late. Reality bites sometimes. Still, it would have been glorious.

One thing that's really funny. Back when they more less took all forms of income away from those without a masters degree in computer design by eliminating the ratings bonus' according to the greedy money changers that was going to cure the linden value. Hemmm that didn't work. Now you're saying take something else away from the normal gamer that isn't using this game to support their drug habits so you can sell your lindens for more real cash. So what's next after they take this away from us? Are you people to thick to realize the simple reason the linden price is falling is because normal adults are mature enough to realize it's a bit childish to spend 100's a month on a game for no other purpose then to feed your greed? All it is from you people over and over and over is screw those uncreative slugs I want to sell my lindens to them for more and more and more. Would be nice if your efforts would go to suggestions on IMPROVING the game rather then taking form everyone else so you can get more. Fat chance of that. You know McDonalds right down the road from you is probably hiring burger flippers. Why don't you run down there get a job for cash and use this GAME for what a GAME is ment for. An escape from real life, time waster, good laugh, reason to ignore your wife or whatever other demented reason you can come up with. What a concept huh. Lindens screwed up from the get go allowing game money to be sold for real money. Like a magnet it attracted you people that don't see this game as a game rather an income source and you're working your best to run off all that want to see it for what it really is. A damn game with cartoons running around.

It's all good in your greedy opinion to take from everyone else, but touch yours and it's hell on wheels heh. You know what I and I'm sure many more would buy more of the crap you make if we all had no idea how greedy you are.

. It also appears to have had a negative effect on the economy.

You're not making entertainment for me.

As stated I could care less about your stuff you sell so you can sell the lindens I give you on the market.

Linden Labs makes the entertainment for me by providing the game.

I can right click and make boxes and stuff

(... I had a premium account for several months until they took all sources of income from me by taking the rating bonus...).

Funny how there's been no response about you and the rest of you greedy money changers burning 95% of your lindens to make less lindens out there.

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You're not making entertainment for me. As stated I could care less about your stuff you sell so you can sell the lindens I give you on the market. Linden Labs makes the entertainment for me by providing the game. I can right click and make boxes and stuff or sit back and watch other cartoons do stuff and gain entertainment value without giving you a dime. I paid Linden Labs 10 bucks (well I had a premium account for several months until they took all sources of income from me by taking the rating bonus). Oh by the way I used to use a good deal of that money to buy your productions. Funny how there's been no response about you and the rest of you greedy money changers burning 95% of your lindens to make less lindens out there. I guess it's a good idea in your opinion to take from everyone else to 'cure your exchange rate' but taking your billions would not help huh. You know the problem isn't them giving use uncreative people a few bucks to buy something here and there the problem is your greed will never be satisified. It's a never ending cycle. Lindens blew it from the get go buy making this whole money changing thing possible. Another question I have is what will be next? What will you propose they take from everyone else once you see taking my 15 cents a week isn't going to buy you 10 more crack rocks a week? What will it take for you to realize rational adults are smarter then to spend 100's of hard earned real money a month buying your GAME MONEY to buy cartoon clothes? Well that's 2 questions, but I'm more then sure neither will be answered. This is actually fun to me. I'm now as I've been from my start in SL amused how hard you people try to make this GAME sound more like real life. I get a kick out of people so detached from reality. Also quite amusing seeing how hard you argue to make your game money sell for more more more at the expense of those that don't posess great computer design skills. It's almost as funny as watching these nerds that are more then likely 2 men act as if they're in love and all the cheezy kissy kissy SL stuff.

I get a kick out of people so detached from reality.

One thing that's really funny. Back when they more less took all forms of income away from those without a masters degree in computer design by eliminating the ratings bonus.