Someone’s gotta write about it…The LindeX and more.

Yesterday there was another Linden Lab Zoom call. I’m not sure what subject to write about frankly, because several topics were covered,but as a fellow blogger said to me; “Someone’s got to, or what was the point?”

I was a bit confused at the start as to the purpose of the call,  because they were talking about the Lindex (Linden Dollar currency exchange). I don’t use Facebook or regularly read the SL Forums so I was unaware some creators have been worrying (complaining maybe?) about the market fluctuating. It’s a financial market, this stuff happens. The problem is (as I understand it) the market is stagnating, as in it’s been stable for too long. The physical world, with tangible currencies has had 20 years of inflation, Second Life hasn’t, apparently the exchange would realistically be nearer 400 than the 250 that it’s been at for decades. As a result the money creators make in Linden Dollars, is worth a lot less than it used to be when cashed out. This isn’t a new problem, the Lab have been struggling with it for some time. In  Brad’s words; “Covid saved us”. Meaning that when the COVID-19 Pandemic came along, there was a sudden influx of new and returning residents, who all needed to buy virtual cash, giving the economy a massive boost. Those residents now seem to have left again.

What’s the solution? It’s a bit tricky to say the least. If creators raise prices, customers are less inclined to spend and it won’t solve anything. If Linden Lab intervenes and sets the value of the Linden Dollar, residents will say they’re interfering. Customers don’t want prices to go up, neither does the Lab, it’d make the situation worse.

I’m no financial expert,so I can’t really speculate on solutions, but one thing that wouldn’t hurt is more people spending money,as in new residents.

One barrier to new residents actually buying anything however is store owners setting their security systems to kick out residents under 30 days old. How can you expand your customer base if you do that? I understand it’s a common practice to reduce spammers and griefers, but the situation the SL economy is in right now, those new residents are the most important ones. Don’t put your prices up, let more customers into your stores.

A few other points that were mentioned before I cease my rambling;

• Creators that were having their products copy-botted will be pleased to hear that the most prolific offenders (that Linden Lab could prove) are in Brad’s words “gone and won’t be coming back. They got more than a stern letter.”
• On the subject of the real-time transactions experiment that went tragically wrong; The more secure an account, the more likely those payments in real-time will be. I interpret that as maybe they might introduce them for accounts that have MFA enabled, but that’s just speculation on my part.
• On new signups; The number of new accounts has gone up x10 more than previously. Of those residents, twice the number are staying around, but it still needs to improve. It just takes one bad experience, like being booted by a stores security system, to leave and not come back. Grumpity Linden gave an example based on metrics of new users arriving at a stores landing point then not going in.
• Random stat revealed by Philip: The average avatar age of regular logins is 14 years old.

Basically we’re all old, getting older, and don’t have a clue how to keep the next generations from leaving after a few minutes on the mobile app.