Decentralized autonomous organizations (DAOs) are people who organize themselves collectively on social applications and the blockchain to achieve common goals and interests.
As the Metaverse trend continues to evolve, DAOs are gathering around the opportunity to use and invest in Metaverse. Given that Goldman Sachs valued the sector at $ 8 trillion, turned its eyes and ears to the accessibility, ease of use and revenue generation of these virtual worlds.
Metaverse digital landowners are announcing some of the most popular names like Adidas, Nike, Snoop Dogg and JPMorgan. These organizations are investing in the digital countries and joining the Web3 movement to better connect with consumers.
However, the biggest barrier to joining the digital fever is cost. DAOs are committed to finding fairer ways to invest in and use these virtual worlds.
DAOs have the potential to help newcomers to Web3 to a large extent by making it easier to interact with the digital country. This means learning to trade, lease and invest in Metaverse’s digital countries.
NFTs – New Keys to Digital Land
In 2021, the two largest Metaverse platforms, Decentraland and Sandbox, earned a total of around $ 460 million in digital real estate. These are not the only meta-verses that users can access. Blockchain games like Axie Infinity build relevant metavers into their terrestrial gameplay to gain valuable resources.
But with today’s prices of digital land in all calculations, many investors are without the price. In Axie Infinity, the cheapest plot costs around 2.2 ETH, or 5 550 dollars, while the most expensive plot currently costs 10,000 ETH, or 25 254 275 dollars. The price range depends on the price of the plot depending on the location. Like real-life real estate, location means a lot in Metaverse, as users try to position themselves strategically to achieve value.
It is planned that the land in Axie Infinity will not only provide passive income money through the management symbol, Axie Infinity Shards (AXS), but also be a useful way for players to gather resources to upgrade their characters in the game. Knowing that land is essential to play, members of the community came together to form AxieLand’s Non-Fungible Token (NFT) (AXL) to give players access to the digital land.
The premise of AXL is that it acts as a kind of access card to the digital land that the AXL NFT team buys. A community member can purchase NFT for 0.1 ETH ($ 252.15) and then access any country AxieLand has purchased from NFT. The AXL NFT team intends to acquire 110 plots in Axie Infinity, ranging from less valuable plots to premium plots. While the project is still in its infancy, going through legal standards before formalizing itself as a DAO, the AXL NFT model is best suited for gaming syndicates.
Other projects designed specifically for playing on the ground include leasing strategies to provide access to and revenue generation of these digital assets.
Related: Metaverse flourishes, leading to a revolution in real estate
Investors can rent digital land for passive income
In addition to gaming functionality, Metaverse’s digital land has endless possibilities, especially depending on who buys and builds it. As such, LandWorks is a community-driven marketplace on the Ethereum network. A rental model has been created for digital landowners, while users can use a cheaper entry point without a long-term contract.
The LandWorks model is easy to make capital efficient in Metaverse. Like the housing market and Airbnb’s platform, LandWorks operates its own marketplace where users can search for land they can rent. LandWorks is powered by EnterDAO, with its ENTR token, where lenders can process the token using Synthetix rewards.
Currently, only Decentraland landowners are supported on the platform, but this may change in the near future. EnterDAO does its best for Metaverse as it complements the rental market with its second product, Metaportal, the hub for all games and events in Metaverse.
DAOs join forces to turn metaverse real estate into investments
PangeaDAO, Metaverse’s Earth Cooperative, aims to create more equitable virtual worlds in Metaverse by democratizing digital land ownership.