1. Second Life
By The Numbers
Melinda
Byerley

3. Where We Are Today
•! 1 Billion user hours to date
•! $1 Billion in user-to-user transactions
•! 1 Billion voice minutes each month

4. The Community
•! 40 million user hours monthly
•! 100 minutes per login
•! Global audience - 60% outside of US

5. Marketplace Dynamics
Second Life
•! 270 Tb of content
•! 250K new objects each day
•! 100 Million+ items
Web Catalog
•! 1 Million+ listings
•! Dozens of categories
•! Tens of thousands of active
merchants
Long tail or head end?
•! Avatar Appearance #1
•! Catalog is long tail
•! In world shoppers and
merchants head end
Source: http://lindenlab.com/pressroom/releases/22_09_09 / LL internal

6. The Second Life Virtual Economy
Virtual Goods – Resident To Resident content sold to other
residents; on the web (Xstreet SL); and within Second Life
Virtual Land: A specific type of virtual good that refers to
server space in second life; equivalent of a web home page
Linden Dollars ($L) Virtual Currency - a limited license
right to use a feature of our product and are not redeemable
for any sum of money or monetary value
LindeX – a mechanism for purchase and redemption of L$
currency
Marketplaces – All of the above + Classified Advertising

7. The Second Life Economy

8. Second Life Virtual Economy at a Glance
Resident Sources
Consumers Stipends, Supply
Currency Sales
Selling L$ for US$
L$
Purchases
Currency Linden
Traders Lab
In world L$ pays
L$ sales Xstreet Marketplace
Supply
LindeX Currency Exchange
3rd Party Exchanges
3rd Party marketplaces
Virtual
Goods
Resident Currency Sinks
Buys Classifieds, Uploads
Selling US$ for L$ Creators

9. Currency Stability
LindeX™ Exchange
•! Market and Limit buy and
sell orders
•! Buy/Ask spread of ~$.04
•! L$ Buyers pay $.30/tx
•! L$ sellers pay 3.5% of tx
Exchange Rate
•! Sinks counterbalance
inflation
•! Sources relieve upward
price pressure
•! Linden Lab sells L$ only
when demand > supply
•! Automatic Circuit breakers
Source: https://www.secondlife.com/my/lindex/market.php

10. Money Supply
Velocity
•! 2X / month
•! Supply expanding by ~2%/month

11. Virtual Economy
"Once you get a virtual economy that's functioning,
you run into all the problems that we have with the real
economy: taxation, interest rates, inflation. All of the
same problems that cause headaches for the Federal
Reserve come up in the virtual economy -- and the
stakes are the same”
- Charles Hudson

12. Thank you
pink@lindenlab.com