Land Economics in the Metaverse: Why is virtual land sought after by players?
The virtual land has become the biggest sweet pastry in the meta universe, but the value support behind it needs to be based on the prosperity of the meta universe itself.
Did you know that Neil Stephenson’s 1992 science fiction novel “Avalanche” was regarded as a bible by Facebook founder Zuckerberg and was widely circulated throughout the company.
This book describes a virtual world parallel to reality. In Metaverse, everyone has a custom avatar, which is parallel to the real world, interacts with each other, and is always online. It is lifelike and immersive. The movie “Avatar” (English: Avatar) created a magnificent Genesis, and its inspiration also came from this.
With the maturity of AR, VR, application of 5G and artificial intelligence autonomous generation technology, the improvement of wearable supporting hardware facilities, and the formation of the blockchain economic system, the world in the novel is coming to us, and the users of Metaverse begin to make their own civilization.
The movie “Number One Player” depicts the meta-universe we yearn for. It has a fully operational economic system that spans the physical and digital worlds. Data, digital items, content, and IP can all pass through the meta-universe. Everyone is in this world. Enjoying the existing facilities, you can also participate in the creation by yourself, thus enriching and prospering the entire universe.
When reality is not so satisfactory and surrounded by pressure and frustration, people in the Z era are more seeking to explore the world in the Metaverse to achieve spiritual satisfaction and self-worth.
NFT game is the best carrier for Metaverse
In encrypted games, through smart contracts, users can freely control and control their own assets. The existence of distributed ledgers protects the account from the risk of theft. The open source code means that players can freely innovate and combine and become the creator of the game. NTF maps the assets in your hands to the physical world. With visualization and identity, virtual goods are transformed from services to transaction entities, thereby enhancing the emotional experience of users.
After several years of quenching, with the improvement of infrastructure and the increase of application scenarios, NFT games have gradually ushered in an explosion. Decentraland, The Sandbox, Axie Infinity, Evolution Land, etc. have shown the prototype of Metaverse and have begun to come under the spotlight. .
Decentraland is a new continent built on Ethereum, allowing users to create, experience, and monetize content and applications. As the first game to introduce tokens, The Sandbox allows users to create, purchase and trade digital assets in the form of games. Axie Infinity introduces pet development and turn-based battles into the game, allowing users to make money while playing, realizing the self-blood formation of the economic system. Evolution Land uses cross-beam bridges to allow assets in the game to interact across chains, realizing the free circulation of multiple chains.
Like reality, the land is still the most sought after
In the past, land was used as a means of production and was the basis for human survival. Even if it has long been out of the agricultural era, it is still a necessary means of living, let alone being endowed with currency storage value. Like the real world, the land of the virtual world has been hyped since its inception and has become the biggest sweet pastry in the entire ecology.
- In June 2021, 9 virtual lands in Axie Infinity were sold at a high price of 888.25 ETH, which is approximately US$1.5 million.
- On June 9, 2021, Boson announced that it would purchase virtual real estate in the Vegas suburb of Decentraland at a market price of approximately $704,000, and plans to build a virtual shopping mall.
- On June 18, 2021, digital real estate developer Republic Realm purchased 259 digital plots, or 66,304 virtual square meters, for 1.295 million MANAs, at a price of approximately US$913,000.
- In July 2021, more than 5.3 million square meters (24*24) of virtual land on The Sandbox was sold at a price of nearly US$880,000.
Virtual land is like a pig on the vent. Under the Duolun auction and competition, the price of virtual land has risen sharply, bringing huge returns to early investors.
The record of increase was a piece of land called “9 Robotis Route” on CryptoVoxels. The initial price was US$101.2, and the current price has reached US$9570.8. The land has only been resold 3 times, and it has reached a 93-fold increase. .
CryptoVoxels：9 Robotis Route
Behind the soaring price is the land economics behind each Metaverse.
Macro-control of the virtual world
Just like the real world currency proliferation, each additional issuance of stablecoins and the advent of a big bull market will inject liquidity into the virtual land, thereby pushing up the price and ushering in a chasing rise, further leading to a high bubble.
According to CoinMarketCap data, as of July 26, the total market value of stablecoins was $116 billion, which has increased nearly four times since the beginning of this year.
USDT market value increased by 2 times
With the issuance of stablecoins, the assets of the virtual world have risen accordingly. Compared with the return rate of traditional assets or cryptocurrency, virtual land is more attractive. After the ownership is returned to the player in the form of NFT, each piece of land or each building is unique, and all transactions are public. , Transparent and traceable, more wonderful than real-world transactions.
Like developed economic organizations, the degree of economic prosperity of each country is closely related to the organization in which it is located, and the economic base determines the superstructure, and the impact on land prices can be imagined.
Decentraland, The Sandbox, and Axie Infinity, as members of the ETH ecology, have gradually explored their own models on the fertile land of Ethereum, after years of trial and error, and tens of millions on Ethereum Users have brought a realistic basis for their outbreak. It can be seen that all the records of land auctions this year were born from this ecology.
According to data from Nonfungible.com, among the current top 10 most expensive NFTs, the virtual land in Decentraland and The Sandbox ranks in the top ten with over US$66 million and US$31 million respectively.
As the representative of the Poalkdot ecological meta-universe, Evolution Land has received the settlement and support of dozens of projects inside and outside the ecology: Astar (formerly Plasm), BML community, Channels, Crust, Lendhub, Mao Dao, MDex, Metaventurer, Phala, Top DAO, YGG They all bought land in the evolutionary planet to build communities. With the development of the evolutionary planet, there is a high probability that it will become the entrance to the game traffic of the Polkadot ecology.
Just like a Wanda can pull up 20% of the surrounding land price, an infrastructure integrating entertainment, leisure, creation, social interaction, and learning affects the fluctuation of virtual real estate prices in each Metaverse.
After several years of construction in Decentraland, it is now covered in various characteristic blocks, mainly including Genesis Plaza, the central event plaza, Vegas City imitating Las Vegas, Fashion Street full of fashion brands, and Festival Land, the city of parties. Chinese characteristic block Dragon City, forest green area Forest Plaza, punk attraction AETHERIAN project, game competition area Gamer Plaza, education area Decentrland University and so on. The existence of these scenes enriches the player’s virtual world and makes people nostalgic to stop.
Sandbox is becoming a major entertainment venue. Major brands are neighbors. Big IPs and celebrities can interact with fans and provide interactions including games, live performances and social experiences. It can be a digital concert stage, a theme park, or a shopping mall. Players can visit and experience it by themselves or with friends. This is the multiplication of the Internet celebrity economy in the virtual world. The reality is too far away, but the virtual can come together and feel the experience of the past and the future.
The land in Axie Infinity is production-type land. After purchasing the land, players can mine AXS tokens and other resources, or rent them to third-party tenants to collect their mining share. In addition, players can also build buildings or operate shops to earn income. In addition, users can use the toolkit Lunacia SDK to develop games and generate content on the land. Each game is an NFT. Axie Infinity has a BOSS mechanism. A monster called Chimera will attack the Lunacia continent from time to time. It reminds me of Shabak’s siege when playing legends in elementary school. Defeating Chimera will also get dropped resources and items, which can be used for upgrades. Land and Axie performance.
On Evolution Land, you can engage in activities such as production, operation, and entertainment, such as mining, synthesizing props, building buildings, and PK. At the same time, players can research their own strategies to quickly increase their planetary assets. Players can choose different continents, and continents are differentiated in the form of public chains. They can buy and sell plots on the planet through auctions. At the same time, they can choose different professions and participate in production to get rewards. Evolution Planet also provides Dapp entrances, etc., where players can carry out various entertainment activities, and the project party can also do more displays. If the game itself is regarded as a small society, there has already begun to appear social division of labor, and applications where different social roles can participate, such as “city hall”, “bank” and so on.
The addition of high-quality IP
The Internet’s economy is an attention economy. As Metaverse has grown in popularity in recent years, it has attracted many well-known IPs to invest in land or hold events in the metaverse. At the same time, these IPs also attract players from outside the circle.
The well-known fashion sports brand Adidas once held a fashion show in Decentraland, and the auction house Sotheby’s also moved its iconic London gallery into Decentraland. Recently, some well-known musicians have joined the metaverse, such as Chen Huanren, rock musicians Richie Hawtin and Deadmau5 have joined The Sandbox. The Filipino players led by the YGG Game Association are the source user groups where Axie Infinity has exploded, and they still account for 50% of the total number of users. Now that the YGG game guild has acquired land in Evolution Land and started production and operations, will YGG’s community bring prosperity to Evolution Land?
We know that in history, there have been seclusions and countries that have led to the decline of national power and the slaughter of people. The convenience of communication with the outside world also determines the value of this meta-universe land.
In the development history of the blockchain game Axie Infinity, the recognized catalyst is its exclusive Ethereum sidechain Ronin, which was launched in May, which completely dominated the outbreak in the past two months. With the increasing number of AXIE players and the increasing popularity of the game, the performance of ETH obviously cannot keep up with the demand. Due to the high gas fee of the bull market, it has always affected the player’s experience and cost, and thus brought obstacles to the introduction of traffic. Compared with Ethereum, Ronin’s Gas fee is negligible, making it easier for more users to reproduce, thereby promoting the growth of the number of Axies, reproduction costs and market turnover. Daily active users (DAU) have soared from 38,000 at the end of April to 300,000 now.
Evolution Land, built on the Darwinia network, uses a decentralized cross-chain bridge network to connect to Polkadot, Ethereum and other chains, DeFi, NFT trading markets, games, etc. Let the assets of different ecology be brought together, and reduce the cost, become a cross-chain traffic entrance. With the advent of the multi-chain era, the interaction of different ecosystems has become frequent, and Evolution Land will enjoy this dividend and usher in the explosive growth of data.
Scarcity of land
In China, the way of restricting land supply is often used to macro-control the growth of housing prices. Then the scarcity of land in the major Metaverses will also be reflected in the price of supply and demand.
The main body of Decentraland is Genesis City. The size of Genesis City is 90,000 LAND (300*300), which has almost all the functions of a modern city. About 36,000 pieces of LAND are the infrastructure area built by the project party and cannot be used for sale. The remaining LAND will be sold to users.
There are a total of 166,464 (408*408) land in The Sandbox, each of which is an ERC721 token. Players can purchase the land-use tool Game Maker to develop and publish on their own, or they can rent to other game developers for rent. Maker does not need code knowledge to develop games, and the land can also be used to host other ASSET props or hold events.
The Axie Infinity meta-universe land is called Lunacia, with a total of 90,601 plots. Each plot is a rare NFT, and the price of the plot varies according to the geographic location. With reference to the concept of Evolution Land elements, different types of land on the Lunicia continent can dig out resources of different elements, and then these element resources will have different uses in production and construction. The introduction of element methods also makes some land more scarce.
Types and distribution of land in Lunacia
Evolution Land contains a total of 26 lands, of which 24 lands contain 2025 (that is, 45×45) plots, and two special lands contain 7921 (22×360 + 1) plots, each Each plot is 100⽶ x 100⽶. The total number of plots is 360×(135+44)+2=64442. Due to geomorphological factors, the number of auctionable plots will be less than the total number of plots.
A flat perspective of the evolutionary planet continent
The soaring price of virtual land has indeed attracted enough attention and stepped out of the circle in the next big wave of NFT, but the value support behind it still needs to be based on the prosperity of the meta universe itself. No amount of economics is as good as hard-working people. The future of virtual land requires a large number of users to develop and construct, build scenarios and expand the scale, so as to realize the real Metaverse, and put our real world and imagined world into it.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/land-economics-in-the-metaverse-why-is-virtual-land-sought-after-by-players/
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