When you get this, if you agree with it, send it to every Linden you can find with a nice little IM telling them what you think about it and whether you think its a good solution. This will be just as good as a signature on any petition. like the author says, strength and resolution is in the numbers- NOT in the disjointed complaints. This was well researched, sources cited, and a solution offered. If we are professional, sensible, and logical, I feel there IS a solution to what is a problem for both the residents and LL. So please send it on to everyone you can think of. And we can make this better for all. Thank you!
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Protesters in SL concerned about the ban on gaming policy change, are either just sitting around whining and demanding that LL remove the ban or they don't know what the heck is going on. Many of the protests have degraded into American bashing or ridiculing by people who suddenly found something to alleviate their boredom by harassing protestors. I have personally brought people together for protest and watched in disgust, acutely aware that it is getting us nowhere. I've never been bombarded with so much spam and petitions than as has been thrown out by the protesters groups. Everyone and their alt has created a protest group and written a petition based on their own ideas. This is how protests fail - people just get discouraged and move on. I'm willing to bet that every single one of you reading this now who has participated even for five minutes in a protest has been subjected to ridicule or heckling - and received more unsolicited spam from group noitices than all the poker groups combined could possibly conceive of. We have to squash this annoyance and arm ourselves with some facts. I don't pretend to have all the answers but offer my conclusion based on the small efforts that I have made. There are many more of you who can do soooo much more.
One thing I want to point out that is little understood is that corraling protesters to stand around with signs is not supposed to be done in front of Lindens or where Lindens reside or work necessarily. Lindens could really care less how many signs you have or what they say. The only thing they will care about is the size of the protest (how many people ya got behind ya) and whether there is a solution to the problem that they are willing to implement. Corraling protesters to stand around with signs is solely for the purpose of getting the issues out there to the people you want to JOIN the protest and informing them why they need to join. Maintaining an active presense at regular locations, such as landing points and areas where large numbers can congregate. This keeps the momentum going and people feel like they are participating in something worthwhile.
In order to be effective this protest has to unite under one cause, and we need to share information in order to do that. This notecard is the result of my research and conclusions. I recommend reading it, if you want to protest. I also recommend maybe doing some research on your own. Mine is by no means complete and is hurriedly put together. I did it because I believe we can win a protest, but only if we act quickly to organize an already powerful force. Part of the organizing must include a single simple solution - in other words, a WAY for LL to remove the ban and bring gaming back to SL. There is but one single simple solution and I'll tell ya why.
SL's economy is seriously in danger of collapse. The signs are all there. Even the nay-sayers who were happy to see gambling go bye bye are starting to see the huge IMPACT the gaming ban is having on SL. Land prices have dropped dramatically overnight. Now ordinarily that would be a good thing in most of our eyes, but unfortunately its a sign of mass exchange of tier paying residents. I say exchange rather than removal, because you can bet the land barons are grabbin it up cheap and sitting on it thinkin things will turn around. Others are thinkin wow I can finally afford land. Dollar trading and spending are severely depressed! LOOK AT THE NUMBERS!
The numbers have dropped dramatically. On July 26, 2007 these were the figures:
US$ Spent Last 24h: $2,083,621
LindeX Activity Last 24h: $ 261,886
Today July 29, 2007 (just three days later), these are the figures:
US$ Spent Last 24h: $1,061,728 (down $1,021,893)
LindeX Activity Last 24h: $218,512 (down $ 43,374)
Note that these figures are dropping by the minute! Just reload the page and you will see.
There are several websites that track stats for SL! One can be found here: (its very interesting reading, but save it for later)
http://www.tnl.net/blog/2007/01/05/running-the-numbers-on-second-life/
In addition to this dramatic drop in only three days, in-world banks have placed trading limits on accounts and Ginko has frozen accounts because people are rushing to cash in their L either to buy cheap land or they see the death throes of SL. One person I know was lucky enough to get there early and cashed his 600K. Three others were not so lucky, their accounts were completely frozen - over 200K each. no doubt the bigger money players found themselves in the same situation, but I don't know any so I have no personal contact about that to include here.
Did anyone else notice that the LindeX was offline on the 25th and 28th and the log in screen gave us an error message today? What's really behind that? Is LL hoping to keep these drops in numbers from the majority of us, while they try to figure a way to artificially inflate them. Probably not, but that and the dramatic changes beg the question, "Just what the hell is goin on at LL right now?" I think LL is totally freaking out based on their lack of any meaningful response, and the dropping numbers and land values.
What better time to hit them with a solution?
A major theme from lots of protesters are demands that LL move their servers. This is NOT a solution as you will see with the following facts. Also, lots of people are confusing facts in general: The UIGEA did NOT ban online gaming. It only makes it illegal to fund illegal gaming with US dollars. (And no one knows what the hell is truly illegal in the online arena at this moment) Also, LL did not ban gaming because internet gambling is illegal in CA.
[read the law here - http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ347.109 (highlights that the politicians want ya to swallow - yawn!)
or read the whole damn thing here: http://www.house.gov/apps/list/press/financialsvcs_dem/21frank_004_xml_(2).pdf]
(dbl yawn!)
In a nutshell, the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) aka the Barny Frank Bill, came into effect July 2007 with restrictions on operators who "
1) being engaged in the business of betting or wagering (2) knowingly accept (3) proceeds from credit cards, electronic fund transfers and checks (4) in connection with with the participation of a bettor (5) in unlawful Internet gambling, which is the sponsorship of online gambling that violates any other federal or state anti-gambling law."LL isn't in the business of wagering or betting per se, but processing all the proceeds from credit cards over the LindeX makes LL 100% liable for all gaming activity in SL because the L is traded for US dollars through the LindeX. If L wasn't traded for US dollars, it would have no value and just be Lindens play money. That breaks no laws.
This single business aspect (LindeX) of LL precludes any gaming ever being allowed in SL again, unless the law is changed. Changing US law takes years of lobbying and millions of dollars, and you can bet the law was lobbied "for" by real life casinos for whom internet gambling poses a very real threat. So ya not only have to fight the gov, but ya gotta fight a really well established organization with deep pockets.
The UIGEA does not directly address the legality of online gaming, but only the use of US dollars to do it. The bill provides for individual states to determine the legality of internet gaming. That in itself is not bad, but the scary thing is that it places the power to enforce the law into the hands of a single person - The Director of Financial Crimes and Enforcement.
Who was it that said Power Corrupts and Absolute Power Corrupts Absolutely? (http://www.phrases.org.uk/meanings/288200.html). Who really cares except that it is proven over and over again.
It goes without saying that LL watched this process closely and thoroughly investigated what they felt their options were. I guarantee you the US government was knocking at LL's door long before they bothered to post the policy change. Although LL is silent about any ongoing investigation into LL or gaming in SL, look at some of what's been in the news for over a year.
The Barney-Frank bill was passed in Oct 2006 and signed by Bush in Nov 2006. It didn't become law until July 2007, yet in mid-May of 2007, the US Dept of Justice crossed international borders and seized over 9 million dollars of Canadian-based Citadel's assets. Citadel had even stopped processing online payments for gambling in Jan 2007, right after Neteller did. Neteller is a UK based online payment processor that recently forfeited millions to the US, under investigation by the US Attys office (read about them here http://www.neteller-group.com/press/en/126.htm and here http://www.internetnews.com/bus-news/article.php/3689631. )
There are also links on the 2nd url to the widely publicized arrest of UK based BetonSports CEO David Carruthers and his co-founder Gary Kaplan who both faced felony charges for promoting online gambling.
Notice these are all prior to the law actually having BECOME law?
These cases did NOT go unnoticed by LL! They were definitely looking around for options or as the saying goes " to cover their ass."
Moving LL's servers somewhere else, is not a real solution considering the fact that the USAO and Dept of Justice crossed international borders to Canada and the UK to prosecute and seize assets and the law wasn't even in effect yet! Moving the servers to a third world country is hardly enticing since it would require an army to protect you to begin with. Who wants to live like that? Now maybe LL did investigate getting rid of the LindeX, but I seriously doubt it. If they did, why didn't they do it? Did they just want to try to fly this thing without losing any profits? Maybe. If so, they are watching SL disintegrate before their very eyes and will certainly be amenable to a solution that can prevent that without too much more damage. The other interesting thing is that SL's residents being what they are, are rebelling like crazy and continuing to game against the ban. This places LL at risk of having SL shut down and LL's assets seized. Again they are at risk of losing EVERYTHING, so yes I believe they want a solution as much as we do.
So what *IS* the solution for LL?
There is only one!! Remove US dollars from the equation!
Yes, the only solution for LL to stay in business at all is to get rid of the LindeX.
Prior to LindeX's launch in Oct 2005, L was traded by third parties, the most notable being GOM. Even though I wasn't here then, I've learned that it wasn't the most efficient method because the L had to be converted to pounds and then to dollars and the LindeX certainly improved that aspect by using US dollars and linking it direct to accounts. Gom had other problems and good points too (google GOM and secondlife if ya wanna read about it.)
LL practically stole the business from GOM in the first place by bringing them to the negotiating table and virtually milking them for their business model. Then LL chucked the deal with them and decided to do it on their own. Yes GOM didn't accept their ridiculously low offer and could have stayed in the picture had they done so, but that's neither here nor there at this point. The important thing is that L can still be traded by a third party and it isn't necessary for LL to do it themselves. If they just stop doing it, they remove 100% of their liability because it takes US dollars out of the equation for them. We get gaming back and they get to stay in business. Yes there are sacrifices on both sides of the issue, because things will have to be recoded and we will no longer have the efficiency of LindeX and will have to find a way to turn our L into real currency. LL has to give up the profits LindeX has nicely provided and lose a little face by giving in the lowly peasants. Give and take is the way of compromise though.
Look at how the LindeX came about to begin with.
On October 3, 2005, LL announced the launch of LindeX - Linden Labs new currency exchange. (read about this here: http://lindenlab.com/press/releases/10_03_05)
Sep 29, 2005: "Gaming Open Market, which for the last two years has facilitated the sale of $2.76 million in currency from virtual world "Second Life," is getting out of the game." (read about this here: http://news.com.com/Online+exchange+dumps+Second+Life/2100-1043_3-5885924.html)
After opening SL's membership on Sep 8, 2006, LL developed significant membership numbers which helped them attract large companies to SL. Why they thought this was a good idea is beyond me except that they were able to sell lots and lots of private islands. This is now slowing to a crawl.
The thing is, even though SL boasts almost 8.5 million members, there are some things that LL doesn't advertize about that figure. Such as the fact that it includes every single person who logged in one time and never returned, and roughly eleventy gazillion alts. So the figure is highly inflated.
The more telling statistic is the log-ins for any given time. There are never more than 50k logged at peak times and the average is under 30K. Big companies who came to SL I think, were expecting much more. Some are leaving faster than they came. Visit their sites in SL and you will find empty calendars of events, deserted sims, or that they have already closed. Aloft (big hotel chain), Sun Micro Systems, Nissan, Dell, Best Buy's Geek Squad Island, IBM, Reebok and American Apparel to name a few. With such small active membership numbers (30-40K at any given time), these companies are really finding no compelling reason to stay. (Thank goodness.) They either expected big advertising possibilities or just wanted the publicity from being associated with Secondlife. At any rate, they are either expanding to other virtual worlds where the learning curve isn't so high and the benefits so low or they are leaving for them altogether. And with the current crumbling conditions, many members are leaving too.
Read this from a resident who says I'm Quitting Second Life - Here's Why (this was posted right after the ban on gaming)
..."The amount of land owners that put their land up for sale skyrocketed, driving prices for land down. Overnight, Second Life became what they call a “buyer’s market”, in the real estate world. If you take a look at some real world “buyer’s markets”, you’ll see a connection, and see the reasons “why” the prices have dropped so low to be called that.
What was a thriving “seller’s market”, starting in December and January (which, in the real world indicates a great place to live… good jobs, good schools, good opportunities) had suddenly become a place where you could pick up so much land, so cheap, that anybody could afford to own land. Not only did landlords have to worry about a new continent being built, flooding the market and driving prices down (which was one of my original reasons for getting out of that business), but they had to worry about the availability of existing land going “up for sale”, creating such a large drop in prices that their tennants could easily buy land, rather than rent from them, any longer.
There was a run on the in-world banks, with residents withdrawing Linden dollars at a faster rate than ever before. Some of it caused by the instant availability of land, and people pulling out L$ to buy it, and some of it caused by people that saw this as the beginning of the end for Second Life. The value of the Linden dollar dropped to a level that hadn’t been seen in the past eight months, indicating that the number of people “cashing out” was pretty high." (he has much more to say here: http://webfeedcentral.com/)
Something else that many nay-sayers have failed to notice (maybe LL did and just overlooked it) is that the only places jam packed with AV's were casinos, brothels and strip clubs. Now that the casinos are gone, what does that leave us with? Eh? The casino and other gaming operators have lost millions in unrecoverable investment from being shut down with no notice whatsoever. Everything they own related to their now defunct businesses is now worth zero. There have been massive layoffs of employees, not just in gambling but the gaming industry as a whole. Tringo, slingo and other gamers have lost the ability to earn L and now must resort to buying lindens or entering the sex industry if they are otherwise unskilled. Even the scriptors and builders who boast their skills will support them, fail to realize that the very people who buy their products no longer have any ability to earn the L they spent. What? They actually believe other skilled people will buy their products. LOL - skilled people make their own stuff and and are not the big spenders in SL. Only new people and unskilled people are the buyers in SL, beside land purchases and gaming complexes. Without anyway to earn L, the only buyers will be rich people who quite frankly have better things to do with their time - like tend to their real lives in order to stay rich.
So we are seeing the ban on gaming has effected the economy of SL much more than anyone anticipated. The numbers prove that.
We all lose if we don't unite the protest with a solution. LL wants one. I can't believe they don't. That's not to say they aren't complete idiots, but they are the only idiots we have to work with. It really is our world and our imagination, but it won't be soon if we sit back and do nothing. Yes SL has lots of other problems and yes LL is constantly imposing things on us and against our "vision" of SL, but this is the immediate crisis for us all and must be dealt with first.
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"buy order" and similar terms mean a request from a user for Linden Lab to match open sale listings with a requested purchase price and facilitate completion of the sale of Currency. "