Linden exchange rate to USD, and stability of linden dollars as a currency

[iamyourneighbour]

Just wondering how is linden dollar always so perfectly backed by USD at 250:1 ratio? It is pretty interesting to have a virtual community that has an economy more stable than real countries. I actually feel pretty confident keeping my sales proceeds as L$ especially with the current strength of USD/AUD

With the MP sales sink tax at 10% I do not see how there would not be an deflation without manual intervention to inject more lindens to keep the capitalization at a certain level. 

Is there interview or official release on how the value of linden dollar is maintained ? The economy within second life is a pretty underrated for what it has archived, never seen anything like it in other virtual communities or MMOs. 

[Callum Meriman]

 

5 minutes ago, iamyourneighbour said:

Just wondering how is linden dollar always so perfectly backed by USD at 250:1 ratio?

Market Manipulation. 

It was 248 for so many years, then Christmas 2016 went to 270-ish. Christmas 2017 saw it almost back there again. Otherwise there is 100 million or so on sale to keep it pegged.

When the 2016 weirdness stopped, the 100 million seller returned from holidays and placed large blocks of currency for sale to drive the market back.