Legal Definitions - online scrip

Online scrip refers to a digital form of credit or currency issued by a private entity, such as a company or online platform, that can be exchanged for specific goods, services, or benefits within that entity's ecosystem. Unlike government-issued money, online scrip is not legal tender and typically holds value only within the system it was created for. It serves as a substitute for traditional currency in particular online environments.

Here are some examples to illustrate online scrip:

• Gaming Currency: Imagine a popular online video game where players can earn or purchase "Star Dust" within the game. This Star Dust cannot be used to buy groceries or pay utility bills in the real world. However, players can exchange Star Dust for exclusive in-game items like unique character outfits, powerful virtual weapons, or access to special game levels. The game developer issues and controls the value of Star Dust.

  Explanation: The "Star Dust" is online scrip because it is a digital currency issued by the game developer, valid only within that specific game's environment, and used to acquire virtual goods or services offered exclusively by the game.

• Online Loyalty Program Points: Consider a major online bookstore, "PageTurner.com," that rewards its frequent customers with "Reader Rewards Points." For every book purchased, customers earn a certain number of points, which accumulate in their online account. A customer can later redeem 500 Reader Rewards Points for a $5 discount on their next PageTurner.com order, or exchange them for exclusive PageTurner-branded merchandise like bookmarks or mugs. These points cannot be used on other websites or converted into cash.

  Explanation: "Reader Rewards Points" function as online scrip because they are a digital credit issued by PageTurner.com, redeemable only for goods or discounts offered by PageTurner.com within its online platform, and cannot be converted to general currency for use elsewhere.

• Digital Platform Credits: An online photography workshop platform, "ShutterSkills Academy," allows users to purchase "Focus Credits" directly from its website. These Focus Credits can then be used to enroll in advanced photography courses, download premium editing presets, or book one-on-one virtual coaching sessions offered exclusively through the ShutterSkills Academy platform. Focus Credits cannot be transferred to other learning platforms or cashed out by the user.

  Explanation: "Focus Credits" are online scrip because they are a digital currency issued by ShutterSkills Academy, valid only within its platform, and used to acquire specific educational services or content provided by the academy.