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Up until a few months ago, LJ required you to either be invited by an existing LJer (someone to generate an invite code) or pay for your account. I guess LJ's been banking in the $$$ to allow members to sign up for free now.
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Not quite but that's more interesting than the actual real story.
The invite codes were never intended as a permanent feature; they were introduced because the massive growth of new accounts was overloading the servers and so many hit and run accounts were created for abuse. Now they've completely overhauled the server infrastructure and the abuse team has grown, they stopped needing them.
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