The Metaverse is the current buzzword, and it’s getting the world excited. Granted, the concept of a virtual world is not as simple as it seems, and in order to successfully create a virtual world, we need to integrate a number of different elements such as graphics, game engines, economic models in the metaverse, utilities and IPs, and ultimately Hardware solutions for carrying AR/VR.
Google keyword search for ‘Metaverse’
The power of the virtual world
We see the Metaverse as the next application layer for social interaction , and Facebook (now Meta) is moving from a flat 2D social media platform to a fully immersive experience. The main attraction of virtual worlds is that people can participate in simulated activities with a certain degree of freedom compared to the real world. And the higher the degree of freedom, the more opportunities for design. However, a higher degree of freedom does not always mean better : in the gaming world, rules are necessary to ensure a full gaming experience.
The concept of the metaverse originated in an experiment conducted by Linden Lab in 2003. They called their virtual world “Second Life,” and the project also gained some popularity. Today, we are unknowingly consuming virtual reality across the entertainment industry through movies like Marvel and Star Wars, games like Grand Theft Auto and Horizon: Dawn, and virtual world sims like Roblox, Minecraft, and Fortnite. world and metaverse.
The company building the Metaverse (for presentation only, not investment advice)
Centralized Metaverse: Roblox
Let’s start by analyzing the progress and influence of the centralized metaverse. Because while the blockchain metaverse has a lot to offer, some of the innovations in the centralized metaverse in terms of pricing, business models, and products are remarkable and most easily transferable to the blockchain metaverse. Although Fortnite is one of the best-selling games, Roblox’s business model has the strongest synergy with the blockchain game/metaverse. Sandbox is already emulating Roblox’s vision and GTM.
Roblox provides the underlying technology to 9.4 million game developers, allowing them to publish more than 40 million games on the Roblox platform, and subsequently on all gaming platforms including mobile, desktop and console. The platform and tools (Roblox’s proprietary game engine) are free to developers, who can earn Robux (in-game virtual currency) once published games are profitable – by Q2 2021, Roblox developers Already made $248 million. From this perspective, the Roblox Metaverse is a distribution and distribution platform.
Roblox offers users a free and paid model by introducing $Robux and allowing parents to pre-set their wallets (minimizing the risk of unknown bank transactions) and convert those money into USD when needed. Roblo earns about 1.25% from all Robux purchases (~$12.50 per 1000 Robux).
In the end, brand advertising, licensing and royalties make up only a small portion of Roblox’s revenue. These brand advertising agreements/licensing agreements are with Disney’s Marvel, LEGO, at&t Warner Bros, Walmart and others.Roblox scales its business by partnering with developers and brands: the developer retains full copyright to the IP, but Roblox reserves the right to license the IP and collect royalties when the IP appears on websites, forums, etc.
Disclaimer: Since some game activities are not recorded on the chain and are not open source, some data are estimated results for reference
The “Big Four” Blockchain Metaverse: Sandbox, Decentraland, Somnium Space & CryptoVoxels
In Google searches, the words most associated with the metaverse are cryptocurrency and blockchain. It is worth noting that in the blockchain metaverse, after people buy land, they can customize the land according to their own preferences, which is not possible with centralized systems. Governance tokens such as $MANA, $SAND allow users to participate in platform governance.
Somnium Space is a cross-platform metaverse featuring VR technology and is currently working on an ongoing collaboration with Tesla Suit. While the platform is gaining traction in the metaverse, its recent development is advancing the development of Somnium Space’s VR headset, the Somnium wallet, and incubating creators in its metaverse. At present, Somnium mainly relies on Opensea to conduct secondary market transactions.
The main products of Somnium Space are as follows: WORLDS, PARCELS, AVATARS and ITEMs.
- Humans are deployed on the Design Avatar SKD and API – helping creators create, tokenize, and trade avatars. Avatar brings in over $500,000 for Somnium Space in 2021, its only first year live. This reflects the user’s love for UGC.
- WORLDS is a small parallel universe built on the Somnium SDK and can be divided into three categories according to size – 75MB, 200MB and 500MB. Users can traverse these universes at will.
- Somnium PARCELS is a land that allows purchase and customization. Each PARCEL has a permanent URL link that allows users to access it through the web at any time.
Decentraland emerged around 2017 and offers creators a range of tools. In the Decentraland metaverse, the community can establish a regional governance system (such as dragon city), and Decentraland has also released a framework to encourage such ideas. wMANA, LAND and ESTATE are means of managing the protocol. Decentraland’s LAND and ESTATE NFTs serve as the identity layer within the ecosystem and help users link ENS addresses to their own land. MANA is a governance token and distributed to landowners. The purpose of MANA tokens is as follows, Decentraland marketplace charges a fee for each transaction, MANA tokens will be used to purchase NFTs in the Decentraland marketplace, thereby creating a deflationary economy.
Another interesting feature is that the metaverse’s land mortgage is backed by the Ripio Credit Network, which allows people to build a position that can make early purchases of Parcel. Another point is that this does not mean that the land is reserved, other users can still buy land from the market.
Finally, Decentraland is very concerned about the development of UGC and Builder Mode, and allows creators and developers to design scenes, wearables, and different experiences. At present, in terms of wearables, 10.2k users have purchased 71k of wearables, and the transaction amount has reached 85.5k ETH. In terms of objects, 161k users purchased 640k objects, reaching a transaction volume of 152ETH.
Sandbox focuses on building a UGC ecosystem (similar to Roblox) and provides creators with tools like Voxel Editor, Game Marker and Marketplace modules.
Sandbox’s governance token $SAND gets 5% of secondary market transaction fees, half of which is fed back to $SAND pledgers, and the other half is allocated to the foundation for research and development. The same 25% of the fees charged for marketing and brand cooperation will also be fed back to the $SAND stakers. Recently, Sandbox launched a game called Alpha Pass, which allows users to explore 18 different metaverse experiences and earn up to 1k $SAND tokens at the same time. Up to now, 200k Alpha Hub visitors have obtained a total of 5k Alpha Passes. Sandbox Assets’ activity level has reached 6.9k ETH, and the objects traded are all NFTs under the Sandbox Metaverse.
Virtual worlds/economy like Axie Infinity, Illuvium, Star Atlas have the properties of a metaverse, and will spawn other metaverses, but with different gameplay rules.
Enter the Metaverse
You can participate in this universe by joining any of the companies mentioned above. If you are an experienced gamer, then you will definitely enjoy swimming in the game universe. If you are a social person and you are interested in open world concepts, or maybe you are a speculator, then buying governance tokens and investing in the Metaverse Index would be a way to go .
Predictions for the metaverse (medium and long term)
User-created content is king
In the future, more and more products will test the waters in the two-dimensional trading market, providing creators and brands with opportunities for co-creation and auctions. This can extend to the metaverse, avatars, and other in-game offerings. Skin trading and gambling already exist in the game universe, but future games will incorporate UGC into their native universe. Other UGC concepts like Twitch live streaming and tokenized video streaming will continue to pay dividends. As the Metaverse and its internal content gradually mature, more native live streaming services and e-sports platforms will be born in the future to create interactive experiences for users.
The explosive demand for head-mounted VR
In December 2021, Oculus witnessed 5.3M-6.8M-level sales, with a 90% year-on-year increase in average daily usage.Playstation announced the launch of PlayStation VR2. The CES 2022 conference also saw a lot of discussion around AR/VR devices.
Interoperable DIDs enable immersive metaverse experiences
As more users become more familiar with the metaverse and especially the blockchain metaverse, decentralized ID will become an important part. Take Sismo, CyberConnect, DeSo and Mem Protocol for example, these projects are enabling the construction of a new generation of identity systems.
Growth of Brand Metadata and Metadata Content
As consumers are drawn to shiny VR headsets, more and more brands are starting to capture consumers’ attention by building their own metaverses, such as H&M and Sotheby’s Sandbox. Disney’s Marvel, which previously used sandbox games, filed a patent for a “virtual world simulator” for a theme park metaverse. Musicians like Snoop Dogg, Deadmau5, and Travis Scott have used the Metaverse for concerts and parties. Recur is another project working directly with brands to bring their content to Web3 through NFTs and other experiences in the metaverse space.
2022 will be an extraordinary year for VR technology, content and metaverse expansion. It is very likely that companies will grow in a low profile for some time to come (due to today’s highly competitive environment), but for creators and developers they will continue to add value to existing platforms.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/metaverse-creator-economic-outlook/
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