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There are limits on how much currency an individual can trade on a monthly and daily basis, according to how long they've been in world. Q: Are there any controls in place aimed at keeping the Linden dollar stable?Ī: There are "circuit breakers" at the broad level. We'll pull the levers we have when we can. At this stage, we have limited tools for managing. Q: So Linden Lab does monitor economic activity in Second Life and adjust the money supply accordingly?Ī: As much as we can. So those are the sources and "sinks" that help us manage the money supply. For example, uploading an image or a file - residents have to pay Linden to do that. The third method we have for managing money supply is "sinks." When someone wants to do something in-world, they have to pay a Linden fee for it. Another method we have for managing that is we can actually sell Linden directly on to the exchange. There are Linden stipends we offer to premium users.
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Q: The dollar has been sliding against a broad array of currencies the past month, how has it been holding up against the Linden dollar?Ī: The in-world economy has been growing so rapidly, faster than the money supply, so there's been constant pressure for the Linden to appreciate against the dollar.īut we have ways to offset that. It creates more flexibility, it's more interesting - and more fun. More than half of our new users are from outside the U.S. Q: Has the Linden dollar always been a floating currency? Why not make it a fixed rate currency?Ī: I think the strategy of making it floating - in letting the market set the price - makes sense to us since we have a worldwide customer base.
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Q: Is the LindeX an income generator for Second Life?Ī: It is, but it's a small portion - probably less than 10 percent of revenue. There were a lot of other players doing it out there and we thought consolidating the volume in one place would reduce volatility and improve the tradability of the Linden. John Zdanowski: The Lindex basically facilitates placing value on the Linden in-world currency. asked John Zdanowski, CFO of Linden Lab - the company that created Second Life - what it's like to operate a real market in a virtual world.Ĭ: Why did Linden Lab launch the LindeX Currency Exchange?