The virtual world Second Life has its own economy and a virtual token referred to as Linden Dollars (L$). In the SL economy, users (called "residents") buy from and sell to one another directly, using the Linden, which is a closed-loop virtual token for use only within the Second Life platform. Linden Dollars have no monetary value and are not redeemable for monetary value from Linden Lab. However, the presence of a currency exchange has led to the Linden Dollar being recognised as a centralized virtual currency, a fiat currency, or property.[1] A resident with a surplus of Linden Dollars earned via a Second Life business or experiential play can offer to exchange with other users via the LindeX exchange provided by Linden Lab. This economy is independent of the price of the game, which users pay to Linden Lab, not to each other. Linden Lab reported that the Second Life economy generated US$3,596,674 in economic activity during the month of September 2005,[2] and in September 2006 Second Life was reported to have a GDP of US$64,000,000.[3]
In 2009, the total size of the Second Life economy grew 65% to US$567 million, about 25% of the entire U.S. virtual goods market. Gross Resident Earnings are $55 million US Dollars in 2009 – 11% growth over 2008.[4]
- ^ "What Is the Linden Dollar?". Investopedia. Retrieved 13 March 2023.
- ^ Reiss, Spencer (December 2005 – January 2006). "Virtual Economics". Retrieved 24 November 2006.
- ^ Newitz, Annalee (September 2006). "Your Second Life Is Ready". Popular Science. Archived from the original on 16 November 2006. Retrieved 24 November 2006.
- ^ Second Life economy totals $567 million US dollars in 2009 — 65 % growth over 2008