How does the economy of a Metaverse work?
Short answer: cryptocurrency and tokens. Each Metaverse has a designated token that provides users with benefits, features, and utilities within the digital reality.
For the long answer, keep reading! Today, we’ll find out the role of crypto in the Metaverse.
When we talk about the Metaverse, we’re not talking about a specific, individual location. A Metaverse is an alternative, digital reality where 3D avatars of its users, tokenomics, virtual experiences, and socialization converge to create a Web3 Metaverse.
In the Metaverse, cryptocurrencies are the currency. Each Metaverse has a specific token that serves as the money for transactions inside of the Metaverse.
Many Metaverse digital economies work through play-to-earn models. On top of that, each Metaverse has its marketplace for collectibles, virtual lands, and other NFTs.
Cryptocurrencies obtain their value based on fiat currency, as the current crypto meltdown has clarified. Metaverse tokens can give holders voting rights on the project and other benefits. They also have their value translated to fiat currency.
Cryptocurrencies have also been used as investments and in-game currency for virtual worlds. The leading cryptocurrencies in the Metaverse are Linden dollars and Bitcoin.
Metaverse tokens are used for trading game items and real money within the Metaverse. In many cases, it allows users to create virtual objects, gaming experiences for themselves and their friends, and new worlds to buy and sell goods in the Metaverse NFT marketplace.
Metaverses are accessed through the computer or a mobile device. You can immerse yourself fully into the Metaverse using a VR headset.
Metaverses also have a virtual economy powered by decentralized finance (DeFi) and use NFTs as trading assets. They offer immersive experiences for their users, leveraging gaming mechanics and logical solutions to provide value to them.
The current bear market in the crypto world has eliminated the most feeble-grounded NFT projects and Metaverse tokens. The crypto tokens with the most staying power will likely thrive as potential investment vehicles.
These are some examples of famous Metaverse tokens:
APE is an ERC-20 token that exists on the Ethereum blockchain. It allows holders to take part in governing the Ape ecosystem. It’s the native token for Otherside, the Metaverse game developed by the Bored Ape Yacht Club creators, Yuga Labs.
ApeCoin has found many challenges during its lifetime. Despite being a relatively brand-new token, it has been resilient enough to maintain a market cap of $1.015 billion, making it the fourth-largest Metaverse token.
Decentraland is a virtual real estate Metaverse where you buy and sell digital plots of terrain called LANDs. It’s an Ethereum-based 3D platform, and you use the land to create your settings and apps to mobilize a decentralized virtual space.
In Decentraland, MANA allows you to trade digital plots you purchase. MANA is an ERC-20 token utilized by Decentraland users to make payments for in-built purchases, buy real estate properties, Avatars, and even exclusive names within the virtual cluster. The plots themselves have another underlying Metaverse token, LAND.
SAND is the Metaverse token used in The Sandbox, which was recurrently on the rise during 2021. The Sandbox is one of the most popular NFT games and even has a billion-dollar market cap.
Part of The Sandbox’s popularity as a Metaverse is its well-developed VR aspect, being one of the Metaverse projects closest to the concept of a Metaverse that Meta has popularized.
The Sandbox is based on the creation and trade of virtual experiences and the exchange of NFTs. Using the SAND Metaverse tokens, players can build their quests for other players to experience and reward them with exclusive in-game NFTs and SAND.
Enjin Coin is an Ethereum token used to infuse digital assets like NFTs. It’s a Metaverse-style gaming environment where users can mint the NFT to buy assets to progress in the game.
Everything in the Metaverse game can be paid for with ENJ, which also functions as an NFT marketplace. Enjin has a $513,815,368 market cap and a series of smart contracts, to which game devs send ENJ to mint new NFTs.
Final words about crypto and the Metaverse
Crypto and the Metaverse go together like love and marriage. Thanks to blockchain technology, crypto serves as the primary currency used within a Metaverse.
On top of that, the play-to-earn model that made most Metaverses mainstream has been possible due to cryptocurrency.
Projects can range from Metaverse games to NFTs to Metaverse worlds used for business applications, such as digital business centers.
Many Metaverse projects are already in motion, and their cryptocurrencies are available for purchase.