Further reflections on Second Life Economics

What does the change in banking policy mean for Second Life? It is a question a lot of people are asking and no one seems to know. One person was told by a Linden that companies will not be able to provide dividends on their stocks. Another person was told that companies will still be allowed to make loans, which pay interest. Exchanges are still waiting for official feedback from Linden Lab.

The bigger question is how do we understand the “currency” of Second Life, which Linden Labs describes as “a limited license right available for purchase or free distribution at Linden Lab's discretion” Can or should banking regulatory agencies be expected to regulate the borrowing or lending of such rights? If so, then these rights should not be controlled at Linden Lab’s discretion.

At 11 AM, SLT, today, Metanomics, together with the Investment Education Team will hold a special event to address Linden Lab’s ‘a radical shift in policy’ regarding banks. I expect it to be a lively discussion and I hope many people attend. Details can be found here.

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