Money - Revision history

MakoBot: Robot: Replacing 'OpenSim' to 'OpenSimulator', which is the precise name

2012-03-04T06:43:32Z

Robot: Replacing 'OpenSim' to 'OpenSimulator', which is the precise name

MakoBot: Robot: Cosmetic changes

2012-03-04T03:35:40Z

Robot: Cosmetic changes

Karen Palen: /* Protect Yourself */ emphasis

2011-09-14T23:35:12Z

‎Protect Yourself: emphasis

Karen Palen: /* Are you running a "business"? */ add emphasis

2011-09-14T23:31:23Z

‎Are you running a "business"?: add emphasis

Karen Palen: /* Protect Yourself */ typo (yes I know I can't type so sue me ...)

2011-09-14T23:13:47Z

‎Protect Yourself: typo (yes I know I can't type so sue me ...)

Karen Palen: /* Consumer Protections */

2011-09-14T23:12:41Z

‎Consumer Protections

Karen Palen: /* Consumer Protections */

2011-09-14T23:11:26Z

‎Consumer Protections

Karen Palen: /* Are you running a "business"? */ add Consumer Protection comments

2011-09-14T23:10:38Z

‎Are you running a "business"?: add Consumer Protection comments

Karen Palen: /* Are you running a "business"? */ typo

2011-09-14T17:28:50Z

‎Are you running a "business"?: typo

Karen Palen: /* A Different Idea */ fix typo

2011-09-14T17:27:47Z

‎A Different Idea: fix typo

@@ Line 7: / Line 7: @@
 == OpenSim, Applications and Money ==
-The OpenSim project does not consider providing any kind of functioning monetary system within its scope. Doing so is entirely up to the service provider, as that provider has to be the source of the trust associated with monetary transactions.
+The OpenSimulator project does not consider providing any kind of functioning monetary system within its scope. Doing so is entirely up to the service provider, as that provider has to be the source of the trust associated with monetary transactions.
-The OpenSim platform will provide whatever protocol hooks necessary to implement a monetary system, and reference implementations for demonstration purposes, but not actual implementations of functioning monetary systems. It is essential to understand this when discussing what OpenSim can do with respect to monetary systems.
+The OpenSimulator platform will provide whatever protocol hooks necessary to implement a monetary system, and reference implementations for demonstration purposes, but not actual implementations of functioning monetary systems. It is essential to understand this when discussing what OpenSimulator can do with respect to monetary systems.
 == Are you running a "business"? ==
@@ Line 58: / Line 58: @@
 == Play Money vs. Serious Money ==
 There are two types of financial systems and currencies: one is purely an in-world affair (play money) and supports roleplay, the other is convertible into hard currencies (serious money).
-While it is commonly agreed that implementing a serious in-world currency system (with all the security implications) is out of scope at least for the current phase of the OpenSim development project, there are still some functional decisions to be made.
+While it is commonly agreed that implementing a serious in-world currency system (with all the security implications) is out of scope at least for the current phase of the OpenSimulator development project, there are still some functional decisions to be made.
 There are several possible ways of handling money in a grid:
@@ Line 67: / Line 67: @@
 * in-world play money plus off-world payment capabilities (might be confusing)
-OpenSim should allow for an implementation of any of those alternatives.
+OpenSimulator should allow for an implementation of any of those alternatives.
 == Off-World Implementation ==
@@ Line 82: / Line 82: @@
 == Wallet Plugin ==
-It occurs to me that perhaps it isn't the job of the grid to keep track of every avatars financial transactions. Perhaps this should be left to banks and other financial organizations. I'm thinking that perhaps OpenSim should pull the money out of the grid and develop an independent bank server. Avatars could choose which "wallet" or "bank" to use for a transaction.
+It occurs to me that perhaps it isn't the job of the grid to keep track of every avatars financial transactions. Perhaps this should be left to banks and other financial organizations. I'm thinking that perhaps OpenSimulator should pull the money out of the grid and develop an independent bank server. Avatars could choose which "wallet" or "bank" to use for a transaction.
@@ Line 91: / Line 91: @@
 '''A Currency that Pays a Dividend'''
-The OpenSim project should have a currency that pays a dividend. If users earn a dividend just by using the game currency this will be a great incentive not only to participate in the game but also to use the currency in real life. Thus this increases the possibility that a market of things of value will develop in the game and maybe the currency will be used for real life transactions as well. A currency that pays a dividend will prevail over any other form of virtual currency by means of the strategic advantage of directly benefiting the user. Convertibility to real currencies will depend solely on free market ability of the currency to provide goods and services and not some convertibility obligation undertaken by the company that hosts the server.
+The OpenSimulator project should have a currency that pays a dividend. If users earn a dividend just by using the game currency this will be a great incentive not only to participate in the game but also to use the currency in real life. Thus this increases the possibility that a market of things of value will develop in the game and maybe the currency will be used for real life transactions as well. A currency that pays a dividend will prevail over any other form of virtual currency by means of the strategic advantage of directly benefiting the user. Convertibility to real currencies will depend solely on free market ability of the currency to provide goods and services and not some convertibility obligation undertaken by the company that hosts the server.
 Implementing a currency that produces a dividend would require suitable financial institutions, capital markets, and a mechanism to liquidate a part of current value of financial instruments. Through liquidating a sustainable part of current value of financial instruments the company that hosts the server would earn the game money funds which when converted to real currency would pay for its operational costs plus the funds needed to pay a dividend. It would be in the best interest of the company that hosts the server to ensure that the financial structure operates efficiently for the benefit of the users so that the game currency has maximum value of convertibility to real life currencies.

@@ Line 82: / Line 82: @@
 == Wallet Plugin ==
-It occurs to me that perhaps it isn't the job of the grid to keep track of every avatars financial transactions.  Perhaps this should be left to banks and other financial organizations.  I'm thinking that perhaps OpenSim should pull the money out of the grid and develop an independent bank server.  Avatars could choose which "wallet" or "bank" to use for a transaction.
+It occurs to me that perhaps it isn't the job of the grid to keep track of every avatars financial transactions. Perhaps this should be left to banks and other financial organizations. I'm thinking that perhaps OpenSim should pull the money out of the grid and develop an independent bank server. Avatars could choose which "wallet" or "bank" to use for a transaction.
 == A Different Idea ==
@@ Line 113: / Line 113: @@
 - The Central Bank will have the power to dispense payments through the Special Account to the company that hosts the server, to shareholders and to in-game political institutions such as elected moderators
 - Ideally the Central Bank management would be ellected by users, even better by Invesment Bank managers
 - Any increase or decrease in monetary volume would be achieved solely by depositing or withdrawing funds to/from each user's account
@@ Line 129: / Line 129: @@
 - They would be able to lend money for projects
 - Any user or group of users would able to open an Investment Bank through a console provided by the Central Bank if they provide capital equal to say 10 Central Bank Shares worth
 - An individual who wants to trade the financial markets with his own money, should come up with enough capital to open an Investment Bank
@@ Line 175: / Line 175: @@
 == Simplest In-Grid Money ==
-A unique avatar creates objects that may not be copied, may not be modified, but may be transferred.  The object permission, and asset storage code of OpenSimulator must be very robust and dependable.  The names of the objects are something like "1-gazoon," "2-gazoons," "5-gazoons," "10-gazoons," "20-gazoons," etc.  Players agree to treat these objects as money and trade them.  Making change will be a pain at times.  The reason that the unique avatar gives "gazoon" objects to other avatars is left as an exercise for the reader.
+A unique avatar creates objects that may not be copied, may not be modified, but may be transferred. The object permission, and asset storage code of OpenSimulator must be very robust and dependable. The names of the objects are something like "1-gazoon," "2-gazoons," "5-gazoons," "10-gazoons," "20-gazoons," etc. Players agree to treat these objects as money and trade them. Making change will be a pain at times. The reason that the unique avatar gives "gazoon" objects to other avatars is left as an exercise for the reader.
 == Web Transactions ==
@@ Line 183: / Line 183: @@
 == Reference Implementations ==
-See [[Feature_Matrix#Other_Simulation_Features]] for various currency options.
+See [[Feature Matrix#Other Simulation Features]] for various currency options.

@@ Line 49: / Line 49: @@
 As Mr. Keyt says in one of his articles, the day the process server knocks on your door is one day too late!
-ONE disgruntled user who lost real life money (or "value") to a crook on your sim can cost you everything you own and everything will ever own!
+'''ONE disgruntled user who lost real life money (or "value") to a crook on your sim can cost you everything you own and everything you would ever own!
 == Motivation ==

@@ Line 21: / Line 21: @@
 Your grid may or may not be a business (depending on local law) if it is run ONLY by donations.
-But if you rent "virtual land", charge for uploads, or sell "cute hats" in world then you ARE running a business and a whole new set of rules and laws apply! The details differ everywhere, but that distinction is universal.
+'''But if you rent "virtual land", charge for uploads, or sell "cute hats" in world then you ARE running a business''' and a whole new set of rules and laws apply! The details differ everywhere, but that distinction is universal.
 In addition there are all kinds of licenses, safety laws, taxes, and often other requirements that apply to ALL businesses.

@@ Line 45: / Line 45: @@
 See http://www.keytlaw.com/ for "Information & Articles about Arizona and United States Law"
-Keyt is an Arizona/US lawyer, but the issues he raises are universal. I highly recommend studying his website and especially his section on Internet Law.
+Mr. Keyt is an Arizona/US lawyer, but the issues he raises are universal. I highly recommend studying his website and especially his section on Internet Law.
 As Mr. Keyt says in one of his articles, the day the process server knocks on your door is one day too late!

@@ Line 29: / Line 29: @@
 === Consumer Protections ===
-There are all kinds of laws in every jurisdiction concerning protection of "Consumers" from all kinds of legal hazards and scams. The basic idea is to protect the legendary "widows and orphans" from evil criminals who are intent on stealing their meagre pensions. I exaggerate only a little!
+There are all kinds of laws in every jurisdiction concerning protection of "Consumers" from all kinds of legal hazards and scams. The basic idea is to protect the legendary "widows and orphans" from evil criminals who are intent on stealing their meagre pensions.
 NONE ('''NONE!''') of the "Consumer Protection" laws apply the '''instant you accept money''' (or "value") in a "business" transaction! You are no longer a "Consumer".
 Your "Home-owners" insurance no longer applies, your auto insurance is voided, and in they eyes of many you are now merely a "RICH evil capitalist" (all for selling a US$1 virtual hat online!)
 === Protect Yourself ===

@@ Line 26: / Line 26: @@
 You need to research this before you start. This is not as hard as it sounds, the local Chamber of Commerce and your local city/town government offices will have all kinds of information.
 === Protect Yourself ===
 If you are planning on something that deals in real life transactions IN ANY WAY, then look into setting up a business entity (Corporation, LLC, or whatever) to run it.

@@ Line 76: / Line 76: @@
-'''A Currency that Pays a Divident'''
+'''A Currency that Pays a Dividend'''
-The OpenSim project should have a currency that pays a divident. If users earn a divident just by using the game currency this will be a great incentive not only to participate in the game but also to use the currency in real life. Thus this increases the possibility that a market of things of value will develop in the game and maybe the currency will be used for real life transactions as well. A currency that pays a divident will prevail over any other form of virtual currency by means of the strategic advantage of directly benefiting the user. Convertibility to real currencies will depend solely on free market ability of the currency to provide goods and services and not some convertibility obligation undertaken by the company that hosts the server.
+The OpenSim project should have a currency that pays a dividend. If users earn a dividend just by using the game currency this will be a great incentive not only to participate in the game but also to use the currency in real life. Thus this increases the possibility that a market of things of value will develop in the game and maybe the currency will be used for real life transactions as well. A currency that pays a dividend will prevail over any other form of virtual currency by means of the strategic advantage of directly benefiting the user. Convertibility to real currencies will depend solely on free market ability of the currency to provide goods and services and not some convertibility obligation undertaken by the company that hosts the server.
-Implementing a currency that produces a divident would require suitable financial institutions, capital markets, and a mechanism to liquidate a part of current value of financial instruments. Through liquidating a sustainable part of current value of financial instruments the company that hosts the server would earn the game money funds which when converted to real currency would pay for its operational costs plus the funds needed to pay a divident. It would be in the best interest of the company that hosts the server to ensure that the financial structure operates efficiently for the benefit of the users so that the game currency has maximum value of convertibility to real life currencies.
+Implementing a currency that produces a dividend would require suitable financial institutions, capital markets, and a mechanism to liquidate a part of current value of financial instruments. Through liquidating a sustainable part of current value of financial instruments the company that hosts the server would earn the game money funds which when converted to real currency would pay for its operational costs plus the funds needed to pay a dividend. It would be in the best interest of the company that hosts the server to ensure that the financial structure operates efficiently for the benefit of the users so that the game currency has maximum value of convertibility to real life currencies.
 The financial structure required could be as follows:
@@ Line 86: / Line 86: @@
 '''1. Central Bank'''
-THe Central Bank would oversee the monetary volume, the amount to be liquidated and the keeping of individual money accounts of users free of charge but free of interest as well.
+The Central Bank would oversee the monetary volume, the amount to be liquidated and the keeping of individual money accounts of users free of charge but free of interest as well.
 - All users would be shareholders to the Central Bank, owning no more and no less than one share each
@@ Line 159: / Line 159: @@
 When a new user opens an account and purchases his share to the Central Bank, new in-game money is created up to the value of one Central Bank share. If he buys his share, the money is deposited in his account. If he does not buy a share and starts free the money is deposited to the Special Account for the benefit of all users. In this way the monetary volume is increased as new users come in and all all users benefit from attracting new users. A de facto mechanism for the convertibility of the in-game currency would thus be achieved and setting up a server for the game could prove profitable. Ideally various groups would be able to start different projects but all grids should be interconnected and maybe their currencies floated on a common exchange
 == Simplest In-Grid Money ==