Economy and Linden $

Second Life has its own economy and a currency referred to as Linden Dollars (L$). Residents regularly create new goods and services, and buy and sell them in the Second Life virtual world. There are also currency exchanges where Residents can exchange US$ or other real world currencies for L$. Though the exchange rate fluctuates, as of February 2007 it is reasonably stable at around L$ 270 to one US dollar.These exchanges are open markets, except that Linden Lab sometimes sells or buys Linden dollars to attempt to keep the exchange rate relatively stable. A small percentage of Residents derive net incomes from this economy, ranging from a few hundred to several thousand US$ per month, while a larger percentage derive a gross income large enough to offset most of their expenditures in L$. The currency has become the subject of concern in economic circles in regard to possible taxation.