DEFINITION of Linden Dollar
The term Linden dollar refers to a digital currency utilized in the virtual world Second Life. Second Life was developed by Linden Lab and was launched in June of 2003. Users of the programs are called residents and they interact with other users through avatars. Residents can travel around the virtual world, socialize and participate in activities.
In addition, residents can create and trade virtual property and/or services with other residents. The purpose behind Second Life is to allow users to become immersed in a virtual world through a user-created, community-driven experience.
BREAKING DOWN Linden Dollar
Linden dollars (L$) can be used to buy, sell, rent or trade land, goods and services. Goods include cars, clothing, jewelry and buildings. Services include entertainment, camping and wage labor. Linden dollars fluctuate in value against the U.S. dollar. Linden dollars can be bought using U.S. dollars and certain other currencies on the exchange service provided by Linden Lab.
While L$ is a floating exchange rate, the rate has remained relatively steady, trading between 240 and 270 per 1 U.S. dollar over the past decade. As of 2017, the rate was reportedly at 250-1.