Fighting the L$ downward spiral – a solution:
Not usually talking about the economy, Gwyn attempts this time to see a possible solution to the L$ inflation, as proposed by some very talented residents of Second Life, and discusses the implications.
the problem with this system is that it adapts to and accepts devaluation at a very fast pace. what that means is that it could contribute to rapid devaluation of lindens. so what the lindens should do to prevent that is to put pricestop percentages in so if the linden changes down more than say 5% in a day, the price is frozen for 5 days.
the other thing that they should do is create linden sinks, which take lindens out of the market. the best way to do that would be to tax transactions or sales at some some very small rate after 10l. so under 10 linden things are untaxed and over 10 linden a 1% tax which probably should be progressive after 1000 linden to 2%. the sole goal there is to take lindens out of the system. That will stabilize the currency