3. Given the above, has anyone started implementing the code for
handling asset creation?


Yes.

It is being done slowly, and it is being done was as much co-operation
with Linden Lab as we can manage.  The upload fee exploit was reported
to Linden Lab some time ago and as John H. has pointed out we've got
an acceptable solution roughed out (high level code provide for client
development that enforces the fee sinks under the hood.)  Linden Labs
is periodically scanning for people that appear to use the Sink Fee
exploit.

Additionally, it was already possible WITHOUT the CRC to bring the
asset server cluster to it's knees.  The CRC key is not necessary to
upload assets, and it was already possible to flood the asset server
cluster with new assets that would not be attached to actual items.
Again, Linden Labs has already been advised of this, quite some time
ago, and it is our belief that they may look at adding a Grey Goo /
throttle type interface to the asset upload system.  I say "belief" as
Linden Labs has not informed us of what, if any, action they have
taken on this matter as of yet.


It is our goal to develop libsecondlife in such a way, as to maintain
good relations with Linden Labs and to prevent, whenever possible,
exploits that damage the Second Life infrastructure.

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