Building a Sustainable Metaverse: Lessons from the Virtual Land Collapse
Building a sustainable metaverse: Lessons from the virtual land collapse by mishaderidder.eth13093 🥝 • 2y • 0 views • 0 clicks | |
AI summary of the linked articlePolygonal Mind, the team behind VIPE and CryptoAvatars, announced it is closing because of tough market conditions, a development the article calls sad but not surprising given how hard the metaverse sector has been hit since crypto's post-2021 bear market. The author argues that metaverse land projects fell because of a "land speculation death spiral," in which artificial scarcity invites speculators to hoard parcels. Decentraland parcels are reported down 97.5% from peak floor prices, The Sandbox's down 97.4%, and Yuga Labs' Otherdeeds down 97.2%. The author suggests a land tax, as EVE Online used after its first real estate bubble, with proceeds funding a "Citizen's Dividend" for active users. | |
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 I once had this guest on the podcast who is totally unknown in the crypto world but runs an extremely successful metaverse-ish app that makes $30M/yr. Their approach is totally different than Sandbox et consortes. There is no land to buy. Instead, they have this virtual chat-like app where you can walk around predefined lands with your avatar, talk with people, dance, play, and so on. Most of their 3M users are women (!), and they generate money primarily by selling digital items. Either designed by them, or the users. If the users design the clothes, they take most of the money. A few of the most productive users make $100-300k per year. And it's not even built on crypto rails, though the last time I spoke with him, they wanted to move to crypto and turn clothes into NFTs. If you'd like to learn more about it, here's the link to the episode: https://youtu.be/71Z7UxWajD0?feature=shared | |
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