What role will DAOs play between metaverse players and virtual land?
DAO and the Metaverse
Many individuals organize collectively in social applications and blockchains to pursue common goals and interests, and the decentralized autonomous organizations formed in the process are often referred to as DAOs. As the universe market continues to mature, DAOs are using and investing in the universe. Goldman Sachs puts the future valuation of the Metaverse industry at $8 trillion, so the mainstream society has begun to focus on the accessibility, availability and the possibility of monetization of virtual worlds.
Currently, owners of virtual land in the Metaverse include some of the most well known brands such as Adidas, Nike, Snoop Dog, and JPMorgan Chase. These entities are investing in the digital space and aligning with Web3 trends to better connect with the consumers. However, for the average person, the biggest barrier to joining the digital space is cost. DAOs are looking to create fairer ways to invest in and utilize virtual worlds.
DAOs can increase the accessibility of virtual land, helping newcomers to Web3 explore ways to share, rent, and invest in virtual land in the Metaverse.
NFT is the new key to the virtual land
In 2021, the two largest Metaverse platforms, Decentraland and Sandbox, will have around $460 million in transaction volume. And, in addition to these two platforms, blockchain games like Axie Infinity have also built their own Metaverse in their games to create valuable resources.
However, with the current price of virtual land in the Metaverse, many investors are turned away by the high price. In Axie Infinity, the cheapest will cost around 2.2 ETH (~$6,500), while the most expensive is currently 10,000 ETH. Prices are largely guessed based on the location of the land, similar to real-life real estate. Strategically, location is of great value to users as it increases exposure and drives traffic.
The land of Axie Infinity will not only provide passive income through its governance token, AXS, but will also be an effective means for players to acquire resources to upgrade their characters in the game. Community members are well aware of the importance of lands to gameplay, so they worked together to build the AxieLands (AXL) NFT to give members access to virtual lands.
AXL is designed to act as a passport to virtual land purchased by the AXL NFT team. Community members can buy NFTs for 0.1 ETH and can then use any land purchased by AxieLand NFTs. The AXL NFT team intends to buy 110 lots in Axie Infinity, ranging from least valuable plots to premium plots. The project is still in its infancy, operating with legal parameters and ready to become a DAO. The model of AXL NFT is also suitable for game guilds, especially land games, combined with leasing to provide strategies for accessing and monetizing these digital assets.
Investors can rent out their virtual land to get a passive income
Beyond game features, there are endless possibilities for virtual land in a virtual world, especially depending on who the buyers and builders are. For example, LandWorks, a community-driven marketplace on the Ethereum network, builds a model for virtual landowners to rent their respective parcels, and users can use this cheaper entry to enter parcels without the need for long-term high-priced land.
When it comes to creating capital efficiencies in virtual worlds, LandWorks’ model is simple. Similar to the lodging marketplace and the Airbnb platform, LandWorks operates a community-driven marketplace for users to browse and find land available for rent. LandWorks is operated by EnterDAO and governed by the native token ENTR, which lenders can earn through Synthetix staking rewards.
Currently, the platform only supports Decentraland landowners, but this may change in the near future. EnterDAO is fully committed to the Metaverse, strengthening its rental marketplace with other products such as Metaverse games and event hub Metaverse.
DAO is converting the Metaverse real estate into an investment
PangeaDAO is a Metaverse land cooperative that creates fairer virtual worlds in the Metaverse by democratizing ownership of virtual land. PangeaDAO’s treasury is managed by its community and serves as the DAO’s capital to acquire virtual real estate and assets. PangeaDAO will manage a diversified portfolio Metaverse, allowing members to benefit from owning, operating and financing income-generating land.
For investors, PangeaDAO, unlike AxieLands NFTs and LandWorks, is a relatively passive entry into the Metaverse, involving how to generate income from virtual land through its partners and investments.
While operations, functionality, and value distribution in DAOs are still in the early stages of development, teams of individuals with the same goals are working toward the future of the Metaverse and its positioning within the broader new ecosystem.
To be sure, investors are entering new frontiers of network iteration through DAOs, which are also new ways to enter the Metaverse. The Metaverse still has a long way to go, and the DAO will be key to the investment of the average player and make the Metaverse virtual space more accessible.