Decentralized Autonomous Organizations (DAOs) are individuals who collectively organize themselves on social applications and blockchains to pursue common goals and interests.
As the leadership of the Metaverse continues to mature, DAOs are rallying around the prospect of using and investing in the Metaverse. Seeing that Goldman Sachs stuck A valuation of $8 billion in the sector, eyes and ears have been interested in the possibility of accessibility, usability and monetization of these virtual worlds.
Digital landowners in the Metaverse promote some of the most recognizable names like Adidas, Nike, Snoop Dogg, and JPMorgan. These entities are invest in digital land and aligning with the move to Web3 to better connect with consumers.
However, the biggest barrier to joining the digital rush is cost. DAOs seek to create a more equitable means of investing in and using these virtual worlds.
DAOs could potentially help with the onboarding of new entrants to Web3 in a substantial way by making interaction with the digital land more accessible. This means exploring means of sharing, renting, and investing in digital land in the Metaverse.
NFTs are the new keys to the digital land
In 2021, the two largest metaverse platforms, Decentraland and Sandbox, generated a combined total volume of approximately $460 million in digital real estate. These are not the only metaverses that users turn to. Blockchain games like Axie Infinity are building their respective metaverses within their running game to generate valuable resources.
However, at current prices for digital land throughout the metaverses, many investors are discounted. In Axie Infinity, the cheapest land costs approximately 2.2 Ether (ETH), or $5,550, and the most expensive is currently 10,000 ETH, or $25,254,275. The price range comes in the speculated value of the land based on its location. Similar to real estate in real life, location holds a lot of value in the Metaverse, where users try to strategically position themselves to benefit.
Something rarely mentioned about #AxieInfinity but with the Lunacia SDK, we could see terrain becoming very popular by increasing its parcel value. The things I hope for are
1) Kart Axie
2) battle royale
3) Smash bros in AxiesAnyone else have ideas?https://t.co/V6MvpuoJZp
— finlee.eth (@leehuachang) June 2, 2021
Land in Axie Infinity is slated to not only provide means for passive income through its governance token, Axie Infinity Shards (AXIS), but it will also be a beneficial means for players to collect resources to level up their characters in the game. Knowing that land is essential to the game, members of the community have come together to form the AxieLands Non-Fungible Token (NFT) (AXL) to allow players to access digital land.
+2M @AxieInfinity players, only 17k plots of land.
Are you going to be left out? pic.twitter.com/n3Z2ciP8wG
-AxieLands NFT (@AxieLandsNFT) November 15, 2021
The premise of AXL is that it acts as a kind of access pass to the digital land purchased by the AXL NFT team. A member of the community could buy an NFT for 0.1 ETH ($252.15) and then have access to any land that AxieLand NFT has purchased. The AXL NFT team intends to purchase 110 land in Axie Infinity, ranging from less valuable land to premium land. Although the project is still in its infancy, working through legal parameters before formalizing as a DAO, the AXL NFT model is the best for gaming guilds.
Suited specifically for ground-based games, other projects are incorporating rental strategies to provide access to and monetize these digital assets.
Related: The Metaverse is booming, bringing revolution to real estate
Investors can rent digital land for passive income
Beyond gameplay functionality, the digital land in the metaverse has endless possibilities, especially depending on who buys it and builds on it. As such, LandWorks is a community-driven marketplace on the Ethereum network. It has established a model for digital land owners to lease their respective parcels, while users can take advantage of a cheaper entry point without long-term retention.
The LandWorks model is straightforward in creating capital efficiency in the Metaverse. Like the Airbnb accommodation marketplace and platform, LandWorks operates its community-driven marketplace for users to browse for land they can rent. Operated by EnterDAO, LandWorks is governed by the native ENTR token, so lenders can farm the token through Synthetix staking rewards.
"You mean I can receive rent AND get ~200% APR on my DCL land/estate?"
@landworksxyz pic.twitter.com/HmyN1hSlL3
- danielivanov.eth | (@dani__ivanov) January 26, 2022
Currently only Decentraland landowners are supported on the platform, but that may change in the near future. EnterDAO is fully involved in the Metaverse, as it complements its rental marketplace with its other product, Metaportal, a hub for all games and events in the metaverse.
The DAOs are banding together to turn metaverse real estate into investments
PangeaDAO, a metaverse land cooperative, intends to create more equitable virtual worlds in the metaverse by democratizing digital land ownership. The PangeaDAO treasury, governed by its community, is the capital in which the DAO will acquire real estate and digital assets. PangeaDAO will manage a diverse portfolio within the metaverse for members to benefit from owning, operating, and financing income-generating land.
Unlike AxieLands NFT and LandWorks, PangeaDAO is a slightly more passive way for investors to gain exposure to the Metaverse, but is more encompassing in how it aims to generate income in the digital land through its partnerships and investments.
We've just released the third and last edition (for now) of the Virtual Land Series: Making Money!
In this article, we discuss Pangea's thoughts on strategies and technologies to generate returns on Metaverse real estate assets.https://t.co/dYEm2mqGYJ
- pangea (@PangeaDAO) March 7, 2022
Although the operations, functions, and value distributions in DAOs are still in the early stages of development, teams of like-minded individuals are working towards the future of the Metaverse and its placement within the broader nascent ecosystem.
Investors are now entering new frontiers with the next iteration of the web via DAO as a way to command the entry point to the Metaverse. While DAO and Metaverse developments are a long way off, it seems to be the best time to invest and build towards more accessible digital worlds.
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