Futurismic

Thanks to New World Notes, we get a little more detail about Philip Rosedale’s LoveMachine system, the reputation-based closed economy we mentioned yesterday.

Cory Ondrejka was Linden Lab’s CTO until 2007, and he was instrumental in developing the LoveMachine system as it operated within the company; here he is explaining a little more about how it came together:

One of my tasks was to invent a new system for employees to give each other feedback, one that would be fun, so easy everyone would use it, and that would generate interesting aggregate information about how individuals and the company were doing.

The design that emerged was tipping.

Tipping — via an internal web tool — would be a positive-sum, transparent game, a way to publicly thank a fellow Linden for going above and beyond. Finding a crucial bug, crunching some extra numbers, helping you figure out the right person to take a question to. Think “Twitter plus $1.” The key was to make it a small amount of money, as a payment makes it real but you don’t want to distort behavior with meaningful payouts.

Tipping was designed to solve three problems: help Lindens know what their fellow employees were doing, generate aggregate data on connections within the company, and identify extreme outliers. It wasn’t clear to me if your tipping rank would be important, but it might be meaningful data if you were generally at the top or the bottom of the list.

He also has suggestions on the problems that LoveMachine – or similar systems – may need to overcome if they’re to be of genuine utility:

The challenges that emerge, of course, fall into three broad categories. First, we optimize for what we measure, so unless you know what you are measuring exactly aligns with business goals, there are going to be misalignments. At Linden, people wrote tools to make it easier to use The Love Machine by irc, chat, email, and the web. This created “pile-on voting”, where an employee would thank someone and other employees would also deliver love to the recipient. This made the amount of love received a function of the time of initial delivery and the communication channel used, which may or may not have been desired. Second, people don’t like just being numbers, they want to understand what they can do to improve, so while The Love Machine should provide additional context for peer and manager feedback, it clearly can’t replace those conversations. Finally, with a transparent system like the Love Machine, are those ranked at the top retained? Are employees who leave or who are fired near the bottom? If not, you may introduce more communication and management overhead rather than reduce it.

If there’s one thing that can be said for certain about reputation engines, it’s that they’re not going to be an easy fix. I guess we’ll only really find out if they work once someone builds one successfully…

Oh, to be a CEO of a tech start-up… they can get bored of their projects even faster than the public can, y’know. Actually, that’s a little unfair – Philip Rosedale, the man behind Linden Lab, hasn’t lost interest in Second life so much as he’s looking for a new fish to fry with his new company, LoveMachine Inc. [image by Mrs. Bones]

What does LoveMachine do? Apparently it’s developing a system of the same name that was used by Linden Lab as a points-based incentive tool:

Linden employees gave and received “love” for a job well done. If an employee was well-received amongst his or her peers, their accumulated love currency was redeemable for a cash bonus at the end of the month. Similar to social capital systems like Whuffie Bank, it appears that LoveMachine may become a reputation currency system for businesses.

Interesting to see another outfit chasing after reputation economies as a potential business model… and restricting such a system to the limited and manageable confines of discreet organisations makes sense, as closed economies are inherently easier to manage. I expect they’ve heeded Bruce Schneier’s advice on reputation economies, too:

You’ve all experienced a reputation economy: restaurants. Some restaurants have a good reputation, and are filled with regulars. When restaurants get a bad reputation, people stop coming and they close. Tourist restaurants – whose main attraction is their location, and whose customers frequently don’t know anything about their reputation – can thrive even if they aren’t any good. And sometimes a restaurant can keep its reputation – an award in a magazine, a special occasion restaurant that “everyone knows” is the place to go – long after its food and service have declined.

Details of the LoveMachine plans are understandably sketchy at the moment. However, Rosedale and company have got a public worklist of jobs that they need a contractor to take on, and – if you live in the San Francisco area – they’re looking to hire. [hat tip to Fabio Fernandes]

Once the hype over Second Life died out, virtual worlds kinda disappeared from the high-profile headlines. But there’s still plenty of stuff going on in the metaverse, not least its use as a test-bed for theories to apply in reality. [image by Ramona.Forcella]

Economics is a popular choice; we’ve reported before on the bank runs and currency collapses of EVE Online, and now Edward Castronova – author of Synthetic Worlds, which should be your first port of call if you’re even vaguely interested in metaverse economics – is leading a team who’re examining the economy of EverQuest II. [via SlashDot]

Researcher Edward Castronova, professor of telecommunications at Indiana University, said researchers can learn almost anything about human society in games as they really are human societies.

However unlike real society they can be observed and tweaked.

“We can do controlled experiments in virtual worlds, but we can’t do that in reality,” said Castronova.

“Controlled experimentation is the very best way to learn about cause and effect. We are on the verge of developing that capacity for human society as a whole.”

[...]

After studying 314 million transactions within the fantasy world of Norrath in “EverQuest II,” including trading in-game goods like armor, shields, leather, herbs and food, the researchers were able to calculate the GDP of one of the game servers (the back-end computer that hosts thousands of players in one world).

As more people opened accounts and flocked to Norrath, spending money on new items, researchers saw inflation spike more than 50 percent in five months.

Game economies are, much like real economies, predicated on more than just a currency. Reputation scores are a big part of game economies (and many social networks, too), but the problem with “karma” systems is that they’re usually implemented in a way that renders them pointless, and which leads to the formation of in-game “mafias” [via BoingBoing]:

There can be no negative public karma-at least for establishing the trustworthiness of active users. A bad enough public score will simply lead to that user’s abandoning the account and starting a new one, a process we call karma bankruptcy. This setup defeats the primary goal of karma-to publicly identify bad actors. Assuming that a karma starts at zero for a brand-new user that an application has no information about, it can never go below zero, since karma bankruptcy resets it. Just look at the record of eBay sellers with more than three red stars-you’ll see that most haven’t sold anything in months or years, either because the sellers quit or they’re now doing business under different account names.

A different (though related) kind of reputation will be bothering the business crowd, however, and the Gartner firm of analysts is convinced that in less than five years, 70% of businesses will have issued avatar dress-codes to their employees [via SlashDot]:

“As the use of virtual environments for business purposes grows, enterprises need to understand how employees are using avatars in ways that might affect the enterprise or the enterprise’s reputation,” said James Lundy, managing vice president at Gartner, in a statement.

“We advise establishing codes of behavior that apply in any circumstance when an employee is acting as a company representative, whether in a real or virtual environment.”

This puts me in mind of a recurring motif in William Gibson’s novels, where he repeatedly makes the point that the most powerful and resource-rich virtual environments will be the ones that look subtle and understated, while the low-budget hucksters will dress to impress with excessive bling and extravagant eye-candy. The subtle grunge and mundane decay of reality is harder to simulate than grandiose overstatement; as in real life, it’ll be wise to tread lightly around the ostentatious.

Not interested in playing games or doing business in the metaverse? Well, you could always go learn to speak a dying language.

Cory Doctorow is the latest to join the hallowed ranks of science fiction authors whose ideas have become reality, though not for some cool gadget or super-weapon. The Whuffie Bank is a non-profit start-up that has taken its name and concept from Doctorow’s Down And Out in the Magic Kingdom novel – a currency based entirely on reputation. [via pretty much everyone, though I saw it first from Chairman Bruce]

The startup is hoping to promote change in the web by rewarding users with a positive impact on the web with this karma-like digital currency. The service will monitor your activity across various websites, including things like comments, posts, and more. When you complete positive actions, you gain Whuffies, and you lose them when you do something that the organization deems to be detrimental. The company hopes that as we use the web more and more in our day-to-day life this positivity will extend beyond the web.

[...]

The algorithm takes into account ‘public endorsements’, or the number of times a user’s tweets are retweeted, or a Facebook post is Liked. It also takes into account who is making the endorsement, and the content in the messages that are being posted. You can make offers to other users using Whuffies as payment (for example, I could ask someone to help me draw a logo, offering 100 Whuffies as payment).

It’s a fascinating idea, and running it as a side-supplement to regular currency is far more likely to succeed than a pure reputation economy… indeed, the way The Whuffie Bank are pitching it, it’s more like an attempt to formalise the invisible transactions of kudos that already occur in the web’s interlinking clades and cultures.

But it’s still pretty deeply flawed, I think, because the metrics it’s using are too easily gamed, and have hugely diffferent values from group to group. Think of how the web PR shills on Twitter constantly retweet each other like some acoustically-perfect echo chamber, or how some people in your Facebook network will blithely click the “Like” button on every Mafia Wars announcement they see. I think the problem is one of scale: a reputation currency can only work across a group that’s small enough to have a real idea of who and what every participant is and does. Trying to make it global – or even national – is probably a doomed enterprise; it might work for small city-states or large towns, though, alongside a time-based currency like LETS.

That said, I still believe there’s a useful idea at the core of the Whuffie concept – it’s something I’ve been kicking around ever since reading Down And Out…, and when I finally start squeezing some fiction writing time back into my schedule, a modified version be appearing in my own stories. What do you think – is reputation quantifiable? And how could we measure it accurately enough to trade on it?

Via Bruce Sterling comes yet another example of a science fictional idea brought to life – RapLeaf looks to be a nascent incarnation of the ‘whuffie’ reputation economy from Cory Doctorow’s
novel Down And Out In The Magic Kingdom.