“Although we currently do not accept L$ in lieu of land sale and maintenance fee payments, we could. Acceptance by Linden Lab of just one month of land sale and maintenance fees in L$ denominated payments could cut the in-world money supply by more than 50%.” – Zee Linden, 14th August 2007 – Second Life Economy Blog Post.
I’ve quoted Zee there, who was the chief financial officer of Linden Lab a while back, because The Marketplace arguments are tied tightly to the tier being too damn high arguments. I’ve argued in the past and continue to argue, that Linden Lab can’t cut tier until they find alternative revenue sources.
Inara Pey has an excellent blog post explaining why slashing tier would be problematic: Tier Cuts : Looking From The Lab’s Perspective. There are some eye watering figures on how much income Linden Lab would potentially lose from slashing tier by a third: “However, were the Lab to cut tier by one-third, they immediately slash monthly private region revenue by $1,400,520. That’s equivalent to 4,747 full private regions vanishing from the grid – 1.6 times more that the total number of private regions (full, Homestead and OpenSpace) lost in 2012.”
This is the stark issue facing Linden Lab and one which explains why tier is unlikely to be slashed anytime soon. However this doesn’t mean nothing can be done, Linden Lab need to get their thinking caps on but a couple of areas which could be investigated are with regards to timed usage and greater use of Linden Dollar sinks.