The magic circle seems a key concept in virtual worlds and gaming. For origin of the term from Huzinga, see here.
The wikipedia article, in summarizing Castronova’s arguments, states:
Even though there are political activities inside synthetic worlds, it is interesting to note that “debates, which really do involve legitimate political interests, almost always occur outside the membrane rather than inside it.”[16
How about for SL? Do these discussions happen inside or out? What about other VWs? Isn't the story in Second Life Herald all about sparking these types of discussions in-world? In TSO and also in SL? And the apocryphal account of LambdaMOO discussion about the cyber rape was also in that world.
And is the point whether the discussion is between self-identified people or avatars?
Lastly, ignoring above distinction for the time, one of the lessons I draw from how discussions happen outside the membrane is that it is further proof of how users of VWs and MMOs are part of a broader institutional field.
“The organizational field isolates for analysis a system of organizations operating in the same realm as defined by relational linkages and shared cultural rules and meaning systems(118)”
(from: Scott, W. R., Davis, G. F., & Scott, W. R. (2007). Organizations and organizing : Rational, natural, and open systems perspectives (6th ed.). Upper Saddle River, NJ: Pearson Education, Inc.)
So, in the out-of-membrane discussions about politics, we see a network of players, or a community, instead of an organization formally, but nonetheless engaging in joint enterprise. THis network is defined by its relation to the virtual world and also to other networks of players/users and also worlds. They discuss and strategize about political questions pertaining to the synthetic world in ways that reveal shared (or contested) cultural rules and meaning systems, What makes for a good game? What is fair? What should different parties do? These are questions relevant only in the context of a field.